Kickstarter, in the last decade, has launched nearly 500,000 projects (Apr 2019). This is strong evidence for the impact the platform has had on capital generation. Online Casino Betway recently conducted a study to investigate some of the biggest products released and took a look at the boom and bust nature of these endeavours. With a staggering 33% success rate, Kickstarter has brought investment campaigns away from the banks and into the arms of the public. It has revolutionised how money funds business ideas and demonstrates that getting funding for good ideas is easier than ever.
The success of so many companies from Kickstarter shows just how important it is to the world of modern business. Let’s take a look at two campaigns that have shaped the way people see Kickstarter. One that sky rocketed into the mainstream and one that has left something to be desired.
The most famous product crowdfunded on Kickstarter is the Oculus Rift VR hardware, which set to change how we saw gaming technology. The 2012 project was so successful that instead of the $250,000 it was supposed to raise, it managed to raise almost $2.5 million. While the company had interest from backers, the crowdfunding helped prove that there was interest from the general public for VR technology. This revolutionary hardware had backing from traditional investors before being launched to the public.
The positive effect from Kickstarter was twofold. Firstly, this meant that the founders of the Oculus Rift hardware received a bounty of funding from the public. But more importantly, it legitimised interest to the original stakeholders who in turn increased their investment. In the early days of ideation, one can only assume there will be interest, but Kickstarter gave tangible evidence that Oculus Rift was going to be a success.
And it was.
On the other hand, investors of Star Citizen had a no-so-glorious fate. The game is yet to materialize, but also created a huge buzz with its potential fans from 2012 onwards. 34,000 potential players backed the campaign and generated enough excitement for the still unseen game that private investors have stepped in for the final leg of production.
But the promise of the new game is still creating a buzz. As it is in Beta, the producers are drafting new languages and increasing the scope of the in-game universe. It’s safe to say that although the buzz has died down – there is definitely still hype surrounding the final product. Once it is finally released – gamers will rejoice their opportunity to invest. But for now, they can only dream.