It is indicative of the number of serious projects that are actually legitimate and are interesting enough for the market to gobble up. Crowdfunding is a world of coolness and creators that have an interesting, functional product is bound to find success on the platform.ĭo not be discouraged by the low success rate. People love getting the latest smart gadget, the cool game that is available nowhere else, the gadget that they can boast about to their friends. These backers are usually industry experts such as gamers, game journalists or tech enthusiasts who are always on the hunt for new and innovative products for which they can be first buyers. They are ordinary people like you and me, who either believe in supporting new talent or who are daring enough to bet their money on innovation and technology. Kickstarter backers are not VC investors or tech big wigs. In doing so, you not only ruin the market for others but are also robbing genuine backers of their hard-earned money. We highly discourage project creators to misuse the platform for personal gains. This is one reason why backers are extremely cautious of funding projects that do not already have a prototype or some sort of legitimacy proving its validity.Ī situation like this is troublesome for everyone involved. They will also be reported as a scam, but generally, there’s nothing that can be done once the money is donated. If the project creator fails to deliver, it is bad press for them. If the project meets its goals and backers’ money is deducted, Kickstarter is no longer involved. Well, this is where things get complicated. What Happens if the Goal is Met but the Project Fails to Deliver It’s only after the campaign goal is met that money is deducted from backers. You will have to start your campaign from scratch and raise the money all over again!ĭuring the duration of the goal, no money is deducted from backers, so no one loses money. If you manage to raise $80,000 but are still $20K short, you won’t get that amount. If you don’t meet your funding goal, you get nothing.įor instance, your funding goal is $100,000. Kickstarter operates on a All or Nothing Model, which means if you meet your funding goal, you get all your money. To answer that, you need to know what failure means. So what happens when Kickstarter campaign fails?
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It’s not easy to succeed on Kickstarter – especially if you don’t have a product that is market validated.
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With a success rate of 38.2%, it’s right for creators to be afraid of failure. When it comes to crowdfunding on Kickstarter, creators are often worried about what happens when Kickstarter fails.