Tech Tuesday is an ongoing series profiling the Forum’s Technology Pioneers. The Tech Pioneers are companies that have been recognized by the Forum for groundbreaking and innovative approaches in tackling some of the world’s most wicked problems. Each week we will showcase one of the 2012 Tech Pioneers. You can learn more about the Technology Pioneer Programme on the Forum’s website.
Kickstarter’s innovative crowd-funding platform lets the public in on venture capital funding for imaginative projects
Kickstarter’s formula looks simple enough; yet, it opens a new door for both the public and a wide assortment of artists and entrepreneurs to fund small, but interesting projects. Anyone with a good idea can submit a proposal to Kickstarter. The applicant states how much money is needed and the deadline for completion. Kickstarter publishes the information on the Web and takes a fee that amounts to 5% of the money raised. Amazon Payments handles the receipt and disbursal of the funding and also takes 3% to 5% as a fee. If the minimum target is not raised, the money is returned.
The advantage to artists and would-be entrepreneurs is that Kickstarter acts only as a broker and has no ownership of the project. It also makes it clear that it cannot guarantee that the project will actually be completed. That is left up to the investor to decide. Kickstarter is merely there to make the connection, but that connection can be a significant contribution. Many good ideas never see the light of day simply from a lack of financing. Often the public would be ready to support an idea, or simply take a long shot investment on a small scale, if they only knew about it. By putting these groups together, Kickstarter shines a spotlight on potentially profitable opportunities both for culture and the economy that until now have largely been ignored.
Perry Chen, Chief Executive Officer
Location: NY, USA
Number of Employees: 22
Year Founded: 2009
155 Rivington St Website
New York City, NY 11238, USA
Telephone: +1 646 596 9536