The document provides information about Kickstarter, including what it is, how it works, and its business model. Specifically:
Kickstarter is a crowdfunding platform where creative projects can be funded. Backers pledge money to support projects and get rewards, while project creators retain ownership and are responsible for completion. If projects reach their funding goals, backers are charged; otherwise no one pays. Kickstarter takes a 5% fee from successfully funded projects. The majority of funding typically comes from friends and supporters of each project.
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Titles
• What is kickstarter?
• Why do people back projects?
• Where do backers come from?
• What do backers get in return?
• Who is responsible for completing a project as promised?
• How does Kickstarter make money?
• KICKSTARTER Business Model
• Iranian Sample
• 5 Things About KICKSTARTER
• Video Clips
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What is kickstarter ?
• Thousands of creative projects are funding on Kickstarter at any given moment. Each project is
independently created and crafted by the person behind it.
• The filmmakers, musicians, artists, and designers you see on Kickstarter have complete control and
responsibility over their projects.
• They spend weeks building their project pages, shooting their videos, and brainstorming what
rewards to offer backers. When they're ready, creators launch their project and share it with their
community.
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What is kickstarter ?
• Every project creator sets their project's
funding goal and deadline. If people like
the project, they can pledge money to
make it happen.
• If the project succeeds in reaching its
funding goal, all backers' credit cards
are charged when time expires. If the
project falls short, no one is charged.
Funding on Kickstarter is all-or-nothing
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Why do people back projects ?
• A lot of backers are rallying around their friends' projects. Some are supporting people they've long admired. Many are
just inspired by a new idea.
• Others are inspired by a project's rewards — a copy of what's being made, a limited edition, or a custom experience
related to the project.
• Backing a project is more than just giving someone money. It's supporting their dream to create something that they
want to see exist in the world.
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Where do backers come from ?
• The majority of initial funding usually comes from the fans and friends of each project.
• If they like it, they'll spread the word to their friends, and so on. Press, blogs, Twitter,
Facebook, and Kickstarter itself are also big sources of traffic and pledges.
• Altogether, millions of people visit Kickstarter every week.
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What do backers get in return ?
• Backers that support a project on Kickstarter get an inside look at the creative process, and help
that project come to life. They also get to choose from a variety of unique rewards offered by the
project creator. Rewards vary from project to project, but often include a copy of what is being
produced (CD, DVD, book, etc.) or an experience unique to the project.
• Project creators keep 100% ownership of their work, and Kickstarter cannot be used to offer
equity, financial returns, or to solicit loans.
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Who is responsible for completing a project as promised ?
• It's the project creator's responsibility to complete their project. Kickstarter is
not involved in the development of the projects themselves.
• Kickstarter does not guarantee projects or investigate a creator's ability to
complete their project.
• On Kickstarter, backers ultimately decide the validity and worthiness of a
project by whether they decide to fund it.
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How does Kickstarter make money ?
• If a project is successfully funded, Kickstarter applies a 5% fee to the funds collected.
All pledges are processed securely by our third-party payments partner, Stripe.
• These payment processing fees work out to roughly 3-5%. View the fee breakdowns.
• If the project does not reach its funding goal, there are no fees.
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5 Things About KICKSTARTER
1. Kickstarter’s mission is to help bring creative projects to life
2. Kickstarter’s operations will reflect its values
3. Kickstarter supports a more creative and equitable world
4. Kickstarter is committed to the arts
5. Kickstarter is committed to fighting inequality
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1. Kickstarter’s mission is to help bring creative projects to life
• Kickstarter will create tools and resources that help people bring their creative
projects to life, and that connect people around creative projects and the creative
process.
• Kickstarter will care for the health of its ecosystem and integrity of its systems.
• Kickstarter will engage beyond its walls with the greater issues and conversations
affecting artists and creators.
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2. Kickstarter’s operations will reflect its values
• Kickstarter will never sell user data to third parties. It will zealously defend the privacy rights and
personal data of the people who use its service, including in its dealings with government entities.
• Kickstarter’s terms of use and privacy policies will be clear, fair, and transparent. Kickstarter will not
cover every possible future contingency, or claim rights and powers just because it can or because
doing so is industry standard.
• Kickstarter will not lobby or campaign for public policies unless they align with its mission and
values, regardless of possible economic benefits to the company.
• Kickstarter will not use loopholes or other esoteric but legal tax management strategies to reduce
its tax burden. Kickstarter will be transparent in reporting the percentage of taxes it pays and
explaining the many factors that affect its tax calculation.
• Kickstarter will seek to limit environmental impact. It will invest in green infrastructure, support
green commuting methods, and factor environmental impact when choosing vendors. Additionally,
Kickstarter will provide recommendations and resources that help creators make environmentally
conscious decisions on tasks, like shipping and packaging that are common to the use of its
services.
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3. Kickstarter supports a more creative and equitable world
• Kickstarter will annually donate 5% of its after-tax profit towards arts and music
education, and to organizations fighting to end systemic inequality as further
defined in sections 4(c) and 5(c) below (the “5% pledge”).
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4. Kickstarter is committed to the arts
• Kickstarter will always support, serve, and champion artists and creators, especially
those working in less commercial areas.
• Kickstarter will foster a supportive environment for employees to work on their
own creative projects, including time off to pursue them.
• Half of Kickstarter’s 5% pledge will be devoted to arts and music programs for
children and young adults, with a primary focus on underserved communities in
New York City. Funds will be distributed to 501(c) (3) organizations, public schools,
or via programs developed by Kickstarter.
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5. Kickstarter is committed to fighting inequality
• Kickstarter will provide opportunities and paid time off for employees to provide
professional mentorship and skills training to people from groups
underrepresented in the worlds of art, business, or technology.
• Kickstarter will report on team and leadership demographics, executive and CEO
pay ratios, and programs and strategies employed to build a diverse, inclusive, and
equitable organization.
• Half of Kickstarter’s 5% pledge will be devoted to organizations addressing systemic
inequality. Kickstarter will primarily focus such contributions on 501(c)(3)
organizations fighting to end prejudices against and increase opportunities for
people of color, women, and LGBTQ individuals