Cold Water for Crowdfunders

A little cold water for crowdfunders: Most Kickstarter campaigns have failed.

As of today, some stats from Kickstarter. Since inception, Kickstarter has raised over $920 million. Fees to Kickstarter have totaled approximately $46 million (5%), with payment processing fees of about $37 million (average of 4%, fees run between 3-5%), mostly to Amazon Payments.

Kickstarter is an all or none funding platform, as compared to Indiegogo that permits a closing at less than the target amount. Accordingly, 56% of all Kickstarter campaigns failed, with the highest failure rate being Film/Video. 10% of projects never received a single pledge, while 80% of projects that raised more than 20% of their goal were successfully funded.

On the bright side, the most successful category has been Dance with a 71% success rate, followed by Theater 64%, Music 55%, Comics 49% and Art 48%. Categories raising over $1M were Games 29 (campaigns), Technology 11, Design 7, Film/Video 3.

Do your own analysis here: http://www.kickstarter.com/help/stats?ref=footer

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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