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Kickstarter

Harry McKinney
September 22, 2015

 Kickstarter

MBA Presentation on Kickstarter

Harry McKinney

September 22, 2015
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Transcript

  1. B Y : J E N N Y F U

    D E M , J I M M Y H U G H E S , H A R R Y M C K I N N E Y & J E S S I C A R O B I N S O N THE CROWDFUNDING EXPERTS
  2. WHAT IS KICKSTARTER ? •  In 2013 Kickstarter was named

    as the largest US crowdfunding website •  It has launched over 100k projects (to date) •  It has more than 3,000,000 backers •  They have contributed over $450,000,000.00 •  23 Projects raised over $1,000,000.00 •  Less than 43% of Projects get funding •  Kickstarter charges a 5% fee + another 5% (to Amazon for credit card fees) if your project gets funded •  If your project does not get funded they get $0.00
  3. KICKSTARTER RULES •  Kickstarter rules state that Kickstarter cannot be

    used for: charity or cause funding including “fund my life” campaigns (vacations, items for personal use) •  Open-ended Projects are not allowed and mass email and social media marketing is not allowed
  4. KICKSTARTER WASN’T 1ST Kickstarter started in 2009 and was the

    1st to use Crowd funding & Social Media as a Tool Kickstarter projects have to be approved by the staff & they have to “fit” in one of the categories
  5. ELEVATION LABS They needed $75,000 •  Elevation Labs needed $75k

    for a new aluminum cutting machine so they could make the iPhone Dock They got $1,464,207 •  Backers donated almost 1.5mil for their Project!
  6. KICKSTARTER’S MAJOR DILEMMA How can Kickstarter provide a platform service

    to allow funding for commercial ventures and provide safeguards for backers at the same time?
  7. TOP 10 COMPETITORS 1.  Indiegogo 2.  GoFundMe 3.  CrowdFunder 4. 

    Peoplefund.it 5.  Smallknot 6.  RochetHub 7.  Gambitions 8.  Medstartr 9.  Spot.us 10. GigFunder/AritistShare
  8. THREAT OF NEW ENTRANTS •  Its HIGH •  Anyone with

    any financial backing can “outmarket” Kickstarter •  They are using a “Generic” platform model •  Easily duplicated
  9. THREAT OF SUBSTITUTE PRODUCTS & SERVICES •  Easily duplicated, many

    alternative companies currently exist that follow their business model very closely •  Competitors that currently exist are: Crowdrise, GoFundMe, IndieGoGo,
  10. BARGAINING POWER OF CUSTOMERS •  Buyers have ALL of the

    Power, they always have. •  In the Kickstarter model if no one buys then no one gets paid
  11. BARGAINING POWER OF SUPPLIERS •  Less than ½ get funded

    •  Kickstarter charges 5% + a 5% fee to Amazon for Credit Card processing •  Campaigns often complain that it takes a long time to get paid
  12. INTENSITY OF COMPETITIVE RIVALRY •  Their external environment (The internet)

    has a very high growth rate •  Low entry / exit barriers •  Lots of competitors •  Less work than boxing
  13. OUR FUTURE SUGGESTIONS •  In regards to becoming more viable

    commercially? •  They should not pursue any ideas into becoming a commercial backer for large corporations. •  As far as the protection of Backers is concerned. •  They should remain committed to being open with their information. •  They should ensure all backers are exposed to the rules and guidelines of what their investment are truly meant to accomplish. •  It may be wise to run a thorough internet marketing campaign to survey people on what new areas they would like KickStarter to become involved in.
  14. FUTURE SUGGESTIONS •  As of right now KickStarter still charges

    a fee for service whether the project is funded or not. •  It may be in their best interest with the rise in competition for KickStarter to lower the fee for service in the event of a project not reaching its funding goals. •  With the signing of the Jobs act firms will no longer be limited to what they can have donated or contributed. •  This is another reason why KickStarter should remain focused in their current niche and stay out of the commercial sector. The current competition in the commercial sector is already very strong.