Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
World Wide Web
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Crowdfunding Grows Up: Kickstarter Hits $1 Billion Milestone
Crowdfunding Grows Up: Kickstarter Hits $1 Billion Milestone

By Seth Fitzgerald
March 3, 2014 1:42PM

    Bookmark and Share
For businesses looking to receive money through crowdfunding sites like Kickstarter, it appears as though the crowdfunding trend will not be going away anytime soon. According to Kickstarter's announcement, half the $1 billion was pledged in the past 12 months alone, suggesting that the rate of such funding continues to rise.
 



Prior to 2008, crowdfunding was almost completely unheard of and if an individual or group of people was interested in creating something, they had few options outside of getting a loan or venture capital investment. This is no longer the case, thanks to sites like Kickstarter, which just reached $1 billion in pledges from 5.7 million people.

Reaching the $1 billion milestone is not only significant for Kickstarter, but for the entire crowdfunding industry, which has become a useful tool for thousands of individuals and businesses. While many of the early crowdfunded projects only dealt with hundreds or thousands of dollars, new ventures have received millions and in the past few years alone, some of the projects have received as much as $10 million.

A Milestone

There is more than one crowdfunding service available, and in fact, Kickstarter came along after other sites, including Indiegogo. As time has passed however, Kickstarter has become the de facto Web site for people attempting to raise money for an innovative project. Now that the crowdfunding process has become established, game developers are beginning to use sites like Kickstarter to fund entire video games, adding to the total donation figure.

In fact, video games have become the largest funding category on Kickstarter, with $215.75 million in pledges. Included on Kickstarter's "most funded" page are the Ouya game console, Double Fine Adventure and Project Eternity. Those three projects alone received more than $15 million.

The success of Kickstarter and many of its competitors is tied to the fact that they allow regular people to directly contribute to projects that interest them. Unlike traditional investments, a group that receives funding on Kickstarter does not give up any control of its projects. Instead, if a campaign is successful, "backers" receive a variety of rewards from the campaign's creators.

For businesses that are looking to receive money through crowdfunding sites like Kickstarter, it appears as though the crowdfunding trend will not be going away anytime soon. According to Kickstarter's announcement, half the $1 billion was donated in the past 12 months alone, suggesting that the rate of funding continues to rise.

All or Nothing

One caveat to Kickstarter's newly released statistics is that within the $1 billion figure are all the pledges that were never actually given to campaigns. Since the service works with a model that prevents campaigns from receiving any donations unless they get the amount that was originally requested, Kickstarter has included pledges to projects that failed to reach their monetary funding goal.

When removing the money that was pledged but never delivered, Kickstarter has facilitated $859 million in actual cash changing hands. However, Kickstarter has still reached a significantly higher amount of donations than Indiegogo, GoFundMe, or any of its others competitors may ever receive.
 

Tell Us What You Think
Comment:

Name:

PeoplePowerFund.com:

Posted: 2014-03-07 @ 11:36am PT
We congratulate kickstarter for raising One Billion Dollars and see it as the very beginning of a revolution in crowd sourced funding; with the upcoming rules slated for release by the S.E.C.( this summer) for capital raising for equity investing. We, at peoplepowerfund have been working for over a year developing a new web portal for this next generation of crowd sourced funding. A revolution in the making peoplepowerfund!



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 World Wide Web
1.   Tor Working To Fix Security Exploit
2.   Wall Street Journal Hacked Again
3.   Internet of Things Comes to DIYers
4.   Microsoft CEO Sees 'Bold' Plan Ahead
5.   Social Media Haters Speak Up


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 

Enterprise Hardware Spotlight
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.