Kickstarter has been providing us with the daily fixes of innovation spread across various industries and genres. The projects are so out of the box that it becomes hard for us to believe in them. The advice “Kickstarter projects usually don’t see the light after being funded” is something that we all are used to hearing. Now Kickstarter, instead of sitting back, has co-published an independent analysis by the University of Pennsylvania called the “Fulfillment Report”
The number of people/projects that fall short of delivering to the backers’ expectations is a number that we all have fun speculating about, though many of us choose to write off the project with the assumption that they won’t make the cut. The new report we are talking about has some interesting tidbits which sheds light on the status of the projects and the money pledged across different categories.
The study will be one of the largest of its kind on the Kickstarter and the company claims that it has no influence over its findings, however they have agreed up on that the findings will be co-published irrespective of the results.
Now for the not so bad news, only 9% of the Kickstarter projects failed to deliver. The study classifies failure if the backers didn’t get the things they were promised, for instance you backed a Power Bank project and were promised a power bank once it hits production, but due to some issues you didn’t get the product. The study further divulges that failure rates are consistent across the categories and the projects that raise less than $1000 tend to fail the most. When questioned, in 15-20% of the cases backers were refunded money and in another 17% they were communicated with and explained the reason for failure.
The most interesting find is the fact that backers pledged money on the very people who failed to deliver before, this shows a kind of bond and understanding the backers have established with the projects thus developing a faith in their ability. The study further suggests how projects can explain the channelization of the funds and also disperse the remainder money after their project fails to take off.
Kickstarter has been nurturing innovations and technological advances, it has become one of the most sought after platform for people to exhibit their wares and get the much needed attention. Failures are an integral part of any endeavors and KickStarter seems no different, however the failure percentile still seems to be acceptable and it wards off some of the doubts people had about the promises made by the projects.
If you ask frequent backers of crowdfunding projects, the issue is mostly with highly delayed and low quality fulfillments more than failure to deliver the products. Now who will prepare a report on this?