Kickstarter, launched in 2009, has revolutionized the way creative projects and innovative ideas are funded. The platform has enabled artists, designers, filmmakers, and entrepreneurs to raise millions of dollars from a community of enthusiastic backers. While many people use Kickstarter to support projects they believe in, others see it as an opportunity to make money by investing in promising campaigns. In this article, we will explore the world of Kickstarter investing and provide a step-by-step guide on how to make money investing in Kickstarter.
Understanding Kickstarter and Its Investment Potential
Kickstarter is a crowdfunding platform that allows project creators to raise funds from a large number of people, typically in exchange for rewards or equity. The platform has hosted over 180,000 successful projects, raising more than $5 billion in pledges. While Kickstarter is not a traditional investment platform, it offers a unique opportunity for investors to support innovative projects and potentially earn returns.
There are several ways to make money investing in Kickstarter:
- Backing projects with high potential: By supporting projects with a high potential for success, investors can earn rewards or equity that can be sold for a profit.
- Selling rewards or merchandise: Investors can buy rewards or merchandise at a discounted price and sell them online or in-person for a profit.
- Investing in Kickstarter-funded companies: Some Kickstarter-funded companies may offer investment opportunities through equity crowdfunding or traditional venture capital.
How to Find Profitable Kickstarter Projects
Finding profitable Kickstarter projects requires research, analysis, and a bit of luck. Here are some tips to help you find projects with high potential:
- Look for projects with a strong team: A project with a strong team, including experienced professionals and industry experts, is more likely to succeed.
- Check the project’s funding goal: A project with a realistic funding goal and a clear plan for using the funds is more likely to succeed.
- Evaluate the project’s marketing strategy: A project with a well-planned marketing strategy, including social media and advertising, is more likely to attract backers.
- Research the project’s competition: A project with a unique idea or a competitive advantage is more likely to succeed.
Using Kickstarter’s Discovery Tools
Kickstarter offers several discovery tools to help backers find projects, including:
- Staff Picks: Kickstarter’s staff selects projects that they think are particularly noteworthy or innovative.
- Project of the Day: Kickstarter features a new project every day on its homepage.
- Categories: Kickstarter allows backers to browse projects by category, including art, design, film, and more.
How to Evaluate Kickstarter Projects
Evaluating Kickstarter projects requires a thorough analysis of the project’s potential for success. Here are some key factors to consider:
- Project risk: Consider the project’s risk level, including the potential for delays, cost overruns, or failure to deliver.
- Market demand: Evaluate the project’s market demand, including the size of the target market and the competition.
- Team experience: Assess the project team’s experience and expertise, including their track record of success.
- Financials: Review the project’s financials, including the funding goal, budget, and potential returns.
Using Kickstarter’s Project Metrics
Kickstarter provides several project metrics to help backers evaluate projects, including:
- Funding progress: The percentage of the funding goal that has been reached.
- Number of backers: The number of people who have pledged to the project.
- Average pledge: The average amount pledged by backers.
- Comments and updates: The project creator’s comments and updates, which can provide insight into the project’s progress and potential issues.
How to Invest in Kickstarter Projects
Investing in Kickstarter projects is relatively straightforward. Here’s a step-by-step guide:
- Create a Kickstarter account: Sign up for a Kickstarter account and verify your email address.
- Find a project to invest in: Browse Kickstarter’s discovery tools or search for projects that align with your interests and investment goals.
- Read the project’s description and risks: Carefully review the project’s description, risks, and terms.
- Pledge to the project: Enter your pledge amount and select your reward.
- Monitor the project’s progress: Keep an eye on the project’s progress, including updates and comments from the project creator.
Managing Your Kickstarter Investments
Managing your Kickstarter investments requires ongoing monitoring and evaluation. Here are some tips to help you manage your investments:
- Diversify your portfolio: Spread your investments across multiple projects to minimize risk.
- Monitor project updates: Keep an eye on project updates and comments from the project creator.
- Adjust your investment strategy: Adjust your investment strategy based on the project’s progress and potential returns.
Conclusion
Investing in Kickstarter can be a fun and rewarding experience, but it requires careful research, analysis, and evaluation. By following the tips and strategies outlined in this article, you can increase your chances of success and make money investing in Kickstarter. Remember to always evaluate projects carefully, diversify your portfolio, and monitor your investments closely.
| Investment Strategy | Description |
|---|---|
| Backing projects with high potential | Supporting projects with a high potential for success and earning rewards or equity. |
| Selling rewards or merchandise | Buying rewards or merchandise at a discounted price and selling them online or in-person for a profit. |
| Investing in Kickstarter-funded companies | Investing in companies that have been funded through Kickstarter, either through equity crowdfunding or traditional venture capital. |
By following these strategies and tips, you can unlock the potential of crowdfunding and make money investing in Kickstarter.
What is Crowdfunding and How Does it Work?
Crowdfunding is a way of raising funds for a project or business by collecting small amounts of money from a large number of people, typically through the internet. In the context of Kickstarter, crowdfunding allows creators to pitch their ideas and projects to a community of potential backers, who can then pledge money to support the project in exchange for rewards or equity.
The process typically involves the creator setting a funding goal and a deadline for the project, and then promoting the project to potential backers through social media, email marketing, and other channels. Backers can then pledge money to support the project, and if the funding goal is reached, the project is considered successful and the creator receives the funds. If the funding goal is not reached, the project is considered unsuccessful and the backers are refunded their pledges.
What are the Benefits of Investing in Kickstarter Projects?
Investing in Kickstarter projects can be a great way to support innovative and creative ideas, while also potentially earning a return on investment. One of the main benefits of investing in Kickstarter projects is the opportunity to be a part of something new and exciting, and to support creators who may not have access to traditional funding channels.
Additionally, investing in Kickstarter projects can also provide a potential return on investment, as many projects offer rewards or equity to backers in exchange for their support. This can be a great way to diversify a portfolio and potentially earn a higher return on investment than traditional investments. However, it’s also important to note that investing in Kickstarter projects carries risks, and backers should carefully research and evaluate the project before making a pledge.
How Do I Choose a Kickstarter Project to Invest In?
Choosing a Kickstarter project to invest in can be a daunting task, as there are many projects to choose from and not all of them will be successful. To increase the chances of success, it’s a good idea to carefully research and evaluate the project before making a pledge. This can involve reading the project description and FAQs, watching the project video, and reviewing the project’s budget and timeline.
It’s also a good idea to look for projects that have a clear and compelling pitch, a well-defined budget and timeline, and a strong team behind the project. Additionally, looking at the project’s social media presence and community engagement can also give an idea of the project’s potential for success. By doing thorough research and due diligence, backers can increase their chances of investing in a successful project.
What are the Risks of Investing in Kickstarter Projects?
Investing in Kickstarter projects carries risks, as not all projects will be successful. One of the main risks is that the project may not reach its funding goal, in which case the backers will be refunded their pledges but the project will not be completed. Additionally, even if the project is successfully funded, there is a risk that the project may not be completed on time or within budget.
There is also a risk that the project may not deliver on its promises, or that the rewards or equity offered to backers may not be as valuable as expected. To mitigate these risks, it’s a good idea to carefully research and evaluate the project before making a pledge, and to only invest what you can afford to lose. By being aware of the risks and taking steps to mitigate them, backers can make more informed investment decisions.
How Do I Get Started with Investing in Kickstarter Projects?
Getting started with investing in Kickstarter projects is relatively straightforward. The first step is to create an account on Kickstarter, which can be done by going to the Kickstarter website and following the sign-up process. Once you have an account, you can browse the Kickstarter website to find projects that interest you.
When you find a project you want to invest in, you can click the “Back This Project” button to make a pledge. You will then be asked to enter your payment information and confirm your pledge. Once you have made a pledge, you will receive updates on the project’s progress and will be notified when the project is completed. By following these steps, you can start investing in Kickstarter projects and potentially earning a return on investment.
What are the Different Types of Rewards Offered by Kickstarter Projects?
Kickstarter projects often offer rewards to backers in exchange for their support. These rewards can vary widely depending on the project, but common rewards include early access to the product or service, exclusive updates and behind-the-scenes content, and recognition on the project’s website or social media channels.
Some projects may also offer more tangible rewards, such as a physical product or a service. For example, a project for a new book may offer a signed copy of the book as a reward, while a project for a new restaurant may offer a free meal as a reward. By offering rewards, creators can incentivize backers to support their project and provide a tangible return on investment.
How Do I Track the Progress of a Kickstarter Project I’ve Invested In?
Tracking the progress of a Kickstarter project you’ve invested in is relatively easy. Once you’ve made a pledge, you will receive updates on the project’s progress through email and the Kickstarter website. These updates may include information on the project’s funding progress, as well as updates on the project’s development and production.
Additionally, many creators also provide regular updates on their project’s social media channels, which can be a great way to stay informed about the project’s progress. By following the project’s updates and social media channels, backers can stay informed about the project’s progress and be notified when the project is completed.