Kickstarter FAQ: What is Crowdfunding?
Here’s our brief guide on what is a crowdfunding and how Kickstarter works. If you still have any questions don’t hesitate to contact us!
What is kickstarter?
Kickstarter is a crowdfunding platform. They provide a service for creators to introduce their project, and for the general public to financially support the projects they like.
How does Kickstarter work?
When you find a project you like and you would like to support, you can make a pledge which is basically a promise: if the campaign is successful that will be your contribution.
But the creators also make a promise: according to which tier your pledge falls in, you will receive a specific reward. The higher is your pledge, the more you receive.
What is the campaign goal?
When starting a campaign the creator has to set a goal and an end date. Kickstarter campaigns work on an all-or-nothing basis: If that goal is not reached by the specified date, the campaign is not successful and all the money go back to the pledgers.
Is it a preorder?
Well, technically you can see it as that. But it is much more than that because there is a substantial difference: when backing a project you are pledging an amount of money that will go to the creators so that they can develop their project.
This allows an upward flexibility: more money collected might lead to a better final product or extra stuff for the backers.
What are stretch goals?
When a campaign hits 100% of its goal before it ends it’s good news for both backers and creators. A common practice is to set other goals, beyond the initial one, which are called stretch goals. This can be a social goal (number of backers or followers on social media channels) or monetary (a specific amount to be reached). Whenever one stretch goal is reached new features are unlocked: from improvements to the original project, to extra rewards for all backers.