What are the benefits of Kickstarter for startups?


Anyone who’s ever had a business idea that they’ve tried to bring into reality will have come across the issue of funding. 



There are a number of ways of getting funding, from business loans to venture capital, and each has its own drawbacks and benefits. In this article, we take a look at an increasingly popular method of funding – Kickstarter – showing the benefits and outlining how it might help you start your dream business, plus expert insider tips from the team at Mercator London.

What is Kickstarter?
Kickstarter is an online platform that facilitates crowdfunding for a wide variety of projects. Any number of individuals can come together to fund a project they believe in, getting some kind of reward in return for their funding. Creators can set different contribution levels, and for each level, project backers will receive a different reward.

This will typically be the product itself, or some variation on it. Backers will generally believe in the idea and want it to succeed – it's possible that they’ll have to wait months or even years to see a result, and it’s possible that they’ll never receive anything for their financial backing.

Keep your company
One of the biggest advantages of Kickstarter is that, unlike with venture capital, you can retain complete control of your company. 
The platform doesn’t require that you give up equity in return for money, allowing you to retain creative and financial control of your business, while still raising the necessary funding to get your startup going. If the Kickstarter campaign does turn out to be unsuccessful, you’ll still have the opportunity to offer shares in return for funding, meaning you won’t have burned any funding bridges.

Get consumer feedback
Kickstarter offers a massive benefit for startups in that it combines funding with market research. Not only is receiving a lot of funding from a large number of parties a good indication of general interest, supporters are also able to provide feedback on early prototypes. 
Creators can then take that feedback into careful consideration and use it to modify later iterations, helping to optimise the product significantly. Carrying out market research can be expensive and resource-intensive; having the opportunity to essentially be paid to carry out this research is a massive bonus of crowdfunding platforms like Kickstarter.

Free exposure and guaranteed sales
Kickstarter is also an amazing way of marketing your brand. People who fund your idea, even if they only contribute a little amount, are likely to share your product on social media and with their friends. A free form of marketing, each share comes from someone who believes in your brand enough to invest in it before it’s even offering a product. 

Having a large number of backers also eases the tension of having a product with no one to sell it to. Each backer is essentially a guaranteed sale, with the indication that many more will be willing to buy the product when it’s eventually ready for market.



Other News

All You Need To Know About Substance Abuse At Work

Substance abuse can be considered an employer's worst nightmare.  However, unlike nightmares, substance abuse is a real problem in any work environment.

The Future Of Small Business Economy - Beyond Covid Crisis

The pandemic and the troubles it brought are inspiring SMBs to focus on evolved customers. Despite the challenges, a salesforce study predicts that 34% of businesses are prioritizing customer relations.  ...

How to Learn More About Your IT Business Needs

We live in a technology-driven world. So, businesses need to update their technological processes to stay competitive. However, if you don't have a strong partnership with managed service providers, you ...

Gender Parity Tips for Business

Business leaders can use these five tips to enhance gender parity, as included in the report:

remarketed nl

remarketed nl

Mumara Campaigns+

Modern email marketing solution ...

Eventify

Build & manage simple and ...

Skillsz

Technical Skills Screening Software

10 Tips For Improved Cyber Security

10 Tips For Improved Cyber Security

Cyber security is changing all the time and so should the way we all approach it. Big businesses are altering ...


Rentdesk helps owners and tenants connect better

Rentdesk helps owners and tenants connect better

Landlords hate rental agents. Rental agents hate tenants. Tenants hate landlords. It could be said the same the other way ...


ABOUT STARTUPINSPIRE
StartupInspire is a inspiration gallery for startup's, where a high quality of culture and quality placed from around the world.

FULL SITE SPONSORSHIP
We partner with sponsors whose products and services we love. Currently, StartupInspire has no sponsor.

STARTUPINSPIRE SUPPORT
Send us a question and we'll respond as soon as possible, usually within few hours. You can also email us directly at [email protected]