How does Kickstarter Work? Insight into Business Model and Revenue Model of Kickstarter

Kickstarter was the rage when it came out, people wanted to showcase their projects raise (free) money and be done with it after delivering the projects (and make some money in the bargain).

So Kickstarter in a Nutshell,

is a funding platform where creators can share and gather interest on a particular creative project they'd like to launch.

It's entirely driven by crowd funding, meaning that the general public (and their money) is what sends these projects into production. It helps artists, musicians, filmmakers, designers, and other creators find the resources and support they need to make their ideas a reality.

To date, tens of thousands of creative projects — big and small — have come to life with the support of the Kickstarter community.

But Before getting started with business model, do you know How did Kickstarter Raise the Fund?

Well, Kickstarter raised $10 million funding from backers like angel investors such as Jack Dorsey, Zach Klein Caterina Fake and, NYC-based venture firm Union Square Ventures etc.

Kickstarter Business Model Canvas

Customer Segments

Kickstarter has a multi-sided business model, with two independent customer segments.

Creators - individual or a group of people who requests for funding

Backers - People who lend money for the funding of the creators’ projects.

Value Proposition

There are four primary value proposition of Kickstarter: accessibility, risk reduction, performance and brand/status.

Channels

Its core channel is its website and it’s social media pages

Key Partners

Kickstarter does not have any. But the company has partnered with various entities for cross-promotional purposes.

Cost Structure

Marketing cost is less for Kickstarter as it profits from its customers for advertising.

Core Competitors

Kickstarter has possessed the capacity to guarantee a competitive advantage by building an expansive client base.

In an amazingly brief time, Kickstarter has rapidly turned into the go-to high-affect mashup of crowdsourcing sensibility and entrepreneurial endeavor. Do you know Why Your Company Should Use the Kickstarter Model to Innovate! Insights here How does Kickstarter Work? Insight into Business Model and Revenue Model of Kickstarter.