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Kickstarter
Kickstarter
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Kickstarter, PBC is an American public benefit corporation[2] based in Brooklyn, New York City, that maintains a global crowdfunding platform focused on creativity.[3] The company's stated mission is to "help bring creative projects to life".[4] As of April 2025, Kickstarter has received US$8.71 billion in pledges from 24.1 million backers to fund 277,302 projects, such as films, music, stage shows, comics, journalism, video games, board games, technology, publishing, and food-related projects.[5]

Key Information

People who back Kickstarter projects are offered tangible rewards or experiences in exchange for their pledges.[6] This model traces its roots to subscription model of arts patronage, in which artists would go directly to their audiences to fund their work.[7]

History

[edit]
Visitors at Kickstarter's Lower East Side, Manhattan offices in 2013

Kickstarter launched on April 28, 2009,[8] by Perry Chen, Yancey Strickler, and Charles Adler. The New York Times called Kickstarter "the people's NEA".[9] Time named it one of the "Best Inventions of 2010"[10] and "Best Websites of 2011".[11] Kickstarter reportedly raised $10 million funding from backers including NYC-based venture firm Union Square Ventures and angel investors such as Jack Dorsey, Zach Klein and Caterina Fake.[12] The company was based at 58 Kent Street in Greenpoint, Brooklyn until they transitioned to a fully remote workforce after the COVID-19 pandemic.[13][14]

On February 14, 2013, Kickstarter released an iOS app called Kickstarter for the iPhone.[15] The app was aimed at users who create and back projects and was the first time Kickstarter had an official mobile presence.[16]

Kickstarter HQ library, Brooklyn in 2017

On October 31, 2012, Kickstarter opened projects based in the United Kingdom,[17] followed by projects based in Canada on September 9, 2013,[18] Australia and New Zealand on November 13, 2013,[19] the Netherlands on April 28, 2014, Denmark, Ireland, Norway, and Sweden on September 15, 2014,[20] Germany on April 28, 2015, France and Spain on May 19, 2015,[21] Austria, Belgium, Italy, Luxembourg and Switzerland on June 16, 2015, Singapore and Hong Kong on August 30, 2016,[22] Mexico on November 15, 2016, and Japan on September 12, 2017. In July 2017, Strickler announced his resignation.[23]

On April 20, 2020, Kickstarter announced that it was likely going to lay off workers due to the coronavirus pandemic causing the number of active projects to be "about 35% below what it was at this time last year with no clear sign of rebound."[24] The layoff was reported by the union to affect up to 45% of the employees, although Kickstarter has yet to report the scale of the layoff as of May 2, 2020. The union negotiated a settlement for laid off employees including four months of severance pay and up to six months of continued health benefits for anyone who gets laid off, recall rights for a year (so that those laid off can return to job openings), and a release from noncompete agreements for those who accept severance pay.[1][25]

In December 2021, Kickstarter announced they would be moving their platform to blockchain, with the aim of making the tools required for creating a crowdfunding site available to anyone.[26] The pivot came on the back of a $100 million investment from the crypto fund of Andreessen Horowitz. The decision backfired, alienated many users, damaging Kickstarter's reputation.[27]

On October 2, 2025, Kickstarter United went on strike while bargaining to maintain the 4-day work week and to raise wages for the lowest paid workers at the company.[28]

Model

[edit]

Kickstarter is one of a number of crowdfunding platforms for gathering money from the public, which circumvents traditional avenues of investment.[29][30] Project creators choose a deadline and a minimum funding goal. If the goal is not met by the deadline, no funds are collected (a kind of assurance contract).[31]

The Kickstarter platform is open to backers from anywhere in the world and to creators from Australia, Austria, Belgium, Canada, Denmark, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Singapore, Slovenia, Spain, Sweden, Switzerland, the United Kingdom, and the United States.[32][33]

Kickstarter applies a 5% fee on the total amount of the funds raised.[34] Its payments processor applies an additional 3–5% fee.[35] Unlike many forums for fundraising or investment, Kickstarter claims no ownership over the projects and the work they produce. The web pages of projects launched on the site are permanently archived and accessible to the public. After funding is completed, projects and uploaded media cannot be edited or removed from the site.[36]

There is no guarantee that people who post projects on Kickstarter will deliver on their projects, use the money to implement their projects, or that the completed projects will meet backers' expectations. Kickstarter advises backers to use their judgment on supporting a project. They also warn project leaders that they could be liable for legal damages from backers for failure to deliver on promises.[37] Projects might also fail even after a successful fundraising campaign when creators underestimate the total costs required or technical difficulties to be overcome.[38][39]

When asked what made Kickstarter different from other crowdfunding platforms, co-founder Perry Chen said: "I wonder if people really know what the definition of crowdfunding is. Or, if there's even an agreed upon definition of what it is. We haven't actively supported the use of the term because it can provoke more confusion. In our case, we focus on a middle ground between patronage and commerce. People are offering cool stuff and experiences in exchange for the support of their ideas. People are creating these mini-economies around their project ideas. So, you aren't coming to the site to get something for nothing; you are trying to create value for the people who support you. We focus on creative projects—music, film, technology, art, design, food and publishing—and within the category of crowdfunding of the arts, we are probably ten times the size of all the others combined."[40]

Projects

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On June 21, 2012, Kickstarter began publishing statistics on its projects.[41] As of December 4, 2019, there were 469,286 launched projects (3,524 in progress),[42] with a success rate of 37.45% (success rate being how many were successfully funded by reaching their set goal).[clarification needed] The total amount pledged was $4,690,286,673.[43]

The business grew quickly in its early years. In 2010 Kickstarter had 3,910 successful projects and $27,638,318 pledged. The corresponding figures for 2011 were 11,836 successfully funded projects and $99,344,381 pledged; and there were 18,109 successfully funded projects, $610,352 pledged in 2012.[44]

On February 9, 2012, Kickstarter hit a number of milestones. A dock made for the iPhone designed by Casey Hopkins became the first Kickstarter project to exceed one million dollars in pledges. A few hours later, a new adventure game project started by computer game developers, Double Fine Productions, reached the same figure, having been launched less than 24 hours earlier, and finished with over $3 million pledged.[45] This was also the first time Kickstarter raised over a million dollars in pledges in a single day.[46] On August 30, 2014, the "Coolest Cooler", an icebox created by Ryan Grepper, became the most funded Kickstarter project in history, with US$13.28 million in funding, breaking the record previously held by the Pebble smartwatch.[47]

From 2012 to 2013, Wharton professor Ethan Mollick and Jeanne Pi conducted research into what contributes to a project's success or failure on Kickstarter. Some key findings from the analysis were that increasing goal size is negatively associated successfully, projects that are featured on the Kickstarter homepage have an 89% chance of being successful, compared to 30% without, and that for an average $10,000 project, a 30-day project has a 35% chance of success, while a 60-day project has a 29% chance of success, all other things being constant.[48]

The ten largest Kickstarter projects by funds raised are listed below. Among successful projects, most raise between $1,000 and $9,999. These dollar amounts drop to less than half in the Design, Games, and Technology categories. However, the median amount raised for the latter two categories remains in the four-figure range. There is substantial variation in the success rate of projects falling under different categories. Over two thirds of completed dance projects have been successful. In contrast, fewer than 30% of completed fashion projects have reached their goal. Most failing projects fail to achieve 20% of their goals and this trend applies across all categories. Indeed, over 80% of projects that pass the 20% mark reach their goal.[43]

Categories

[edit]

Creators categorize their projects into one of 13 categories and 36 subcategories.[49] They are: Art, Comics, Dance, Design, Fashion, Film and Video, Food, Games, Music, Photography, Publishing, Technology and Theater. Of these categories, Film & Video and Music are the largest categories and have raised the most money. These categories, along with Games, account for over half the money raised.[43] Video games and tabletop games alone account for more than $2 out of every $10 spent on Kickstarter.[50]

Guidelines

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To maintain its focus as a funding platform for creative projects, Kickstarter has outlined three guidelines for all project creators to follow: creators can fund projects only; projects must fit within one of the site's 13 creative categories; and creators must abide by the site's prohibited uses, which include charity and awareness campaigns. Kickstarter has additional requirements for hardware and product design projects. These include[51][52]

  • Banning the use of photorealistic renderings and simulations demonstrating a product
  • Banning projects for genetically modified organisms[53]
  • Limiting awards to single items or a "sensible set" of items relevant to the project (e.g., multiple light bulbs for a house)
  • Requiring a physical prototype
  • Requiring a manufacturing plan

The guidelines are designed to reinforce Kickstarter's position that people are backing projects, not placing orders for a product. To underscore the notion that Kickstarter is a place in which creators and audiences make things together, creators across all categories are asked to describe the risks and challenges a project faces in producing it. This educates the public about the project goals and encourages contributions to the community.[54]

Notable projects and creators

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At $20.3 million, the Pebble Time is the third-largest successful Kickstarter campaign.

Several creative works have gone on to receive critical acclaim and accolades after being funded on Kickstarter. Others, such as the Ouya console, have resulted in commercial failure.[55] The documentary short "Sun Come Up" and documentary short "Incident in New Baghdad" were each nominated for an Academy Award;[56][57] contemporary art projects "EyeWriter" and "Hip-Hop Word Count" were both chosen to exhibit in the Museum of Modern Art in 2011;[58] filmmaker Matt Porterfield was selected to screen his film Putty Hill at the Whitney Biennial In 2012;[59] author Rob Walker's Hypothetical Futures project exhibited at the 13th International Venice Architecture Biennale;[60] musician Amanda Palmer's album Theatre is Evil debuted at No. 10 on the Billboard 200;[61] designer Scott Wilson won a National Design Award from Smithsonian's Cooper-Hewitt, National Design Museum following the success of his TikTok + LunaTik project;[62] the Kickstarter funded GoldieBlox toy gained nationwide distribution in 2013;[63] and approximately 10% of the films accepted into the Sundance, SXSW and Tribeca Film Festivals are projects funded on Kickstarter.[64][65]

The Glowing Plant project was the first and only synthetic biology campaign on Kickstarter.[66]

The Oculus Rift began as a 2012 Kickstarter project and became one of the most funded projects at the time. The company was then acquired by Facebook two years later for $2 billion.[67] Peloton Interactive sold its first exercise bike on Kickstarter in 2013 with an early bird price tag of $1,500. It became a public company in 2019 via an initial public offering raising $1.1 billion.[68] Cards Against Humanity originated with a $4,000 Kickstarter campaign in 2010.[69][70]

Top projects by funds raised

[edit]
Ten largest successfully completed Kickstarter projects by total funds pledged (only closed fundings are listed)[71]
Rank Total USD Project name Creator Category % funded Backers Closing date
1 46,762,258 eufyMake E1: the First Personal 3D-Texture UV Printer eufyMake DIY electronics 9,352 17,822 28 June 2025
2 41,754,153 Surprise! Four Secret Novels by Brandon Sanderson Dragonsteel Entertainment Fiction 4,175 185,341 31 March 2022
3 20,338,986 Pebble Time – Awesome Smartwatch, No Compromises[72] Pebble Technology Product design 4,067 78,471 27 March 2015
4 20,277,362 Snapmaker U1 Color 3D Printer: 5X More Speed. 5X Less Waste. Snapmaker 3D printing 20,277 20,328 30 September 2025
5 15,149,874 Brandon Sanderson's Cosmere RPG Brotherwise Games Tabletop games 6,060 55,106 30 August 2024
6 13,408,553 Roller Pro Carry-On Luggage by Peak Design Peak Design Product design 13,409 24,219 18 April 2025
7 13,285,226 Coolest Cooler: 21st Century Cooler that's Actually Cooler[73] Ryan Grepper Product design 26,570 62,642 30 August 2014
8 12,969,608 Frosthaven[74] Cephalofair Games Tabletop games 2,594 83,193 1 May 2020
9 12,779,843 Pebble 2, Time 2 + All-New Pebble Core[75] Pebble Technology Product design 1,277 66,673 30 June 2016
10 12,393,139 Kingdom Death: Monster 1.5[76] Kingdom Death/Adam Poots Tabletop games 12,393 19,264 7 January 2017
Top projects by number of backers
Rank Backers Project name Creator Category Total USD Closing date
1 219,382 Exploding Kittens Exploding Kittens Tabletop games 8,782,571 20 February 2015
2 185,341 Surprise! Four Secret Novels by Brandon Sanderson Dragonsteel Entertainment Fiction 41,754,153 31 March 2022
3 154,926 Fidget Cube: A Vinyl Desk Toy Matthew and Mark McLachlan Product design 6,465,690 20 October 2016
4 105,857 Bring Reading Rainbow Back for Every Child, Everywhere! LeVar Burton & Reading Rainbow Web 5,408,916 3 July 2014
5 91,585 The Veronica Mars Movie Project Rob Thomas Narrative film 5,702,153 13 April 2013
6 88,887 Critical Role: The Legend of Vox Machina Animated Special[77][78] Critical Role Productions Animation 11,385,449 19 April 2019
7 87,142 Double Fine Adventure Double Fine and 2 Player Productions Video games 3,336,371 14 March 2012
8 85,581 Bears vs Babies - A Card Game Exploding Kittens Tabletop games 3,215,679 18 November 2016
9 83,193 Frosthaven Cephalofair Games Tabletop games 12,969,608 1 May 2020
10 81,567 Avatar Legends: The Roleplaying Game Magpie Games Tabletop games 9,535,317 2 September 2021

Project cancellations

[edit]

Both Kickstarter and project creators have cancelled projects that appeared to have been fraudulent. Questions were raised about the projects in internet communities related to the fields of the projects. The concerns raised were: apparent copying of graphics from other sources; unrealistic performance or price claims; and failure of project sponsors to deliver on prior Kickstarter projects.

Some notable cancelled projects include:

  • Eye3 camera drone helicopter for unrealistic performance promises, photos copied from other commercial products, and failure of creators to deliver on an earlier Kickstarter project.[79]
  • Mythic: The Story of Gods and Men adventure game for copying graphics from other games and unrealistic performance promises; the creator had raised $4,739 on an $80,000 goal before canceling the project.[80]
  • Tech-Sync Power System for failing to provide photos of the prototype and sudden departure of project creator.[81]
  • Tentacle Bento, a card game intended to satirize Japanese school girl tentacle rape comics, after being criticized in the online media for having inappropriate content.[82]
  • Kobe Red, a project for jerky made from Kobe beef, was canceled after raising $120,309. The project was allegedly fraudulent.[83]
  • LA Game Space, a 2012 project to open a space in Los Angeles for video game exhibitions, education, and artists in residence. The organisation exceeded its funding target but shut down in 2018, failing to open a physical venue.[84][85]
  • iFind claimed to be a battery-free item locating tag. Critics of the project raised serious doubts about its viability, focusing on its claimed EM harvesting capability and the lack of a working prototype. Kickstarter suspended funding after $546,852 had been raised.[86]
  • The Skarp Laser Razor was cancelled in 2015 by Kickstarter. It had raised $4 million in pledges, but was cancelled after Kickstarter claimed that Skarp had failed to demonstrate a working prototype.[87]
  • The CR-1 desktop CNC by Coast Runner Industries was cancelled in February 2024 after raising over $500,000.[88] The company responded by suing Kickstarter for violating federal antirust law.[89]

Controversies

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Projects

[edit]

Many individual Kickstarter projects caused controversy:

  • In May 2011, a New York University film student, Matias Shimada, raised $1,726 to make a film, but plagiarized another film. He later apologized to the public.[90][91]
  • In 2012, Amanda Palmer raised $1.2 million on Kickstarter. She was criticized for asking to have musicians play with her for free on tour, after raising such a large sum.[92]
  • In April 2013, filmmaker Zach Braff used Kickstarter to fund his film Wish I Was Here and raised $2 million in three days, citing the success of Rob Thomas' Veronica Mars Kickstarter as his inspiration. Braff received criticism for using the site, saying his celebrity status would draw attention from other creatives who lack celebrity recognition,[93] the same kind of criticism regarding big figures in the gaming industry using Kickstarter. (One example is Richard Garriott, who created a successful $1+ million Kickstarter despite his personal fortune.)[94] Kickstarter disputed these arguments by claiming, according to their metrics, big name projects attract new visitors, who in turn pledge to lesser-known projects.[95][96]
  • In June 2013, there was controversy over the book Above the Game, a guidebook on seducing women. Outlets pointed out that the advice in the book seemed to encourage sexual assault.[97][98][99] Although Kickstarter received a significant alert, they failed to pull the project. The site eventually wrote a letter of apology and placed a blanket ban on "Seduction guides".[100]
  • On November 6, 2013, writer/director Hal Hartley launched a Kickstarter campaign to produce his upcoming film Ned Rifle, seeking a total of $384,000.[101] On November 25, Hartley added a $9,000 reward tier offering the film's distribution rights for seven years in the United States and other countries, making his Kickstarter campaign the first to propose offering film distribution rights.[102] Subsequently, Kickstarter notified Hartley selling distribution rights is a form of investment, which is forbidden by Kickstarter's terms and conditions, forcing Hartley to remove the option.[103]
  • In May 2014, Kickstarter blocked fundraising for a film about late-term abortion provider Kermit Gosnell. Producer Phelim McAleer claimed Kickstarter censored the project because of its graphic content and espousing a "liberal agenda".[104] In June 2014, the project received approval for fundraising from rival site Indiegogo, raising more than $2.3 million.[105]

Patent disputes

[edit]
  • On September 30, 2011, Kickstarter filed a declaratory judgment suit against ArtistShare in an attempt to invalidate U.S. crowd-funding patent US 7885887, "Methods and apparatuses for financing and marketing a creative work".[106] Kickstarter asked that the patent be invalidated, or, at the very least, that the court find that Kickstarter is not liable for infringement.[107] In February 2012, ArtistShare and Fan Funded responded to Kickstarter's complaint by filing a motion to dismiss the lawsuit. They asserted that patent infringement litigation was never threatened, that "ArtistShare merely approached Kickstarter about licensing their platform, including patent rights", and that "rather than responding to ArtistShare's request for a counter-proposal, Kickstarter filed this lawsuit."[108] The judge ruled that the case could go forward. ArtistShare then responded by filing a counterclaim alleging that Kickstarter was indeed infringing its patent.[109] In June 2015, Kickstarter won its lawsuit, with the judge declaring ArtistShare's patent invalid.[110]
  • On November 21, 2012, 3D Systems filed a patent infringement lawsuit against Formlabs and Kickstarter for infringing its 3D printer patent US 5597520, "Simultaneous multiple-layer curing in stereolithography." Formlabs had raised $2.9 million in a Kickstarter campaign to fund its own competitive printer.[111] The company said that Kickstarter caused "irreparable injury and damage" to its business by promoting the Form 1 printer, and taking a 5% cut of pledged funds.[112] A six-month stay was granted by the judge for settlement talks in which Kickstarter did not participate.[113]
  • On January 23, 2015, Alphacap Ventures LLC filed a patent infringement lawsuit against multiple crowdfunding platforms, including Indiegogo, CircleUp, GoFundMe, Kickstarter, Gust, RocketHub & Innovational Funding, for three patents — US 7848976, US 7908208 and US 8433630.[114] According to Bloomberg, Alphacap Ventures provides strategic, operations, and financial advisory services in the United States along with other financial services.[115] Elsewhere, Alphacap Ventures is described as a patent troll.[116][117]

Monopolistic practices

[edit]

In December 2024, Coast Runner Industries sued Kickstarter for violations of federal antitrust law in response to the suspension of its desktop CNC campaign.[89]

Data breach

[edit]

In February 2014, Kickstarter announced a data breach of almost 5.2 million users' data, including email addresses, usernames and salted SHA-1 hashes of passwords.[118]

Unionizing efforts

[edit]

On March 19, 2019, Kickstarter's staff announced plans to unionize as part of the Office and Professional Employees International Union (OPEIU), which would make Kickstarter the only major tech company to have a union.[119][120] Shortly after the announcement, three senior staffers released a memo dissenting against the decision, claiming that it is too extreme and that it would be a "misappropriation of unions for use by privileged workers."[121] According to Kickstarter employees, they wanted to found a union both for enabling collective bargaining for wages and for "giving employees more clout," allowing them to work for goals that they saw in their interest and the public's interest.[25]

In May, Aziz Hasan, then CEO of Kickstarter, announced that the company would require an election for the union rather than voluntarily recognizing it, saying that "our view is that we are better set up to be successful without the framework of a union."[122]

On September 16, the employees filed a complaint against Kickstarter with the National Labor Relations Board (NLRB) after two employees were terminated. According to the workers, they were fired for unionizing, although the company says it was for "performance issues."[123][124] After these allegations, some Kickstarter creators have started a campaign against Kickstarter to let its employees unionize.[125][126]

On September 28, Kickstarter confirmed that it would not recognise the unionisation effort. In a statement addressed to project creators, the CEO stated that unionisation would turn workplace relations "inherently adversarial" and that it "doesn't reflect who we are as a company." Additionally, the CEO confirmed that Kickstarter stood by its decision to fire the two employees and would be pursuing legal action to fight their claims.[127] The statement immediately resulted in criticism and calls for boycotts from creators who had previously used the platform,[128] while writer Neil Gaiman tweeted that he would be unlikely to post support for or links to new Kickstarter campaigns "as long as they are anti-union."[129]

Kickstarter employees continued to file complaints to the NLRB, which forced Kickstarter to allow its employees a formal vote on unionization. The vote was held on the morning of February 18, 2020, with 46 voting in favor of joining the OPEIU and 37 voting against.[130] The CEO at the time, Aziz Hasan, said after the vote, "We support and respect this decision, and we are proud of the fair and democratic process that got us here."[131] With this, the OPEIU will now work with the union effort, Kickstarter United, to bargain with Kickstarter management for a contract.[132]

As of May 2, 2020, 60% of the workforce was part of the union.[1]

Blockchain

[edit]

On December 8, 2021, Kickstarter announced a plan to develop a decentralized protocol on blockchain platform Celo to build an open source and blockchain-based crowdfunding infrastructure and then move its own website to that system.[133] The announcement prompted backlash from creators and backers on Twitter, many of whom pledged to abandon Kickstarter if the move went forward.[134][135] On December 15, a week later, Kickstarter responded to the controversy in a blog post that clarified the company's position but did not indicate a change of plans.[135]

See also

[edit]

References

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia

Kickstarter is an online platform founded on April 28, 2009, by , , and Charles Adler, and headquartered in , New York, that enables creators to raise funds for creative projects such as , , , , games, music, and theater through an all-or-nothing pledge model where backers are charged only if the funding goal is met.
The company operates as a public benefit corporation, having restructured in 2015 to balance profit motives with commitments to support artistic expression and balanced creative ecosystems.
As of 2025, Kickstarter has amassed $9.23 billion in total pledges from 25 million backers across 287,875 successfully funded projects, though funding success does not guarantee project delivery, with creators retaining full control over execution.
Prominent achievements include enabling breakthroughs like the 2012 campaign, which raised over $10 million and paved the way for subsequent consumer tech ventures, alongside board games such as Frosthaven that exceeded $12 million in funding.
Despite these successes, Kickstarter has encountered controversies from projects that raised significant sums but failed to deliver promised rewards, including instances of apparent or gross mismanagement, exposing backers to substantial risks without equity stakes, refunds, or robust enforcement mechanisms.

History

Founding and Early Development (2009–2012)

Kickstarter was conceived by Perry Chen in late 2001 while living in New Orleans, where he sought to fund a DJ event during Jazz Fest but lacked sufficient backing; he envisioned a platform allowing advance pledges that would only charge backers if the funding goal was met, enabling risk-free support for creative projects. Chen relocated to New York City in 2005 to pursue the idea, partnering with Yancey Strickler, a former editor at McSweeney's and Wizards of the Coast with experience in online communities, who focused on user engagement and content strategy. Charles Adler joined in 2006, contributing web design and development expertise from prior ventures in online tools. The trio, later assisted by developer Andy Baio in 2008, iteratively built the prototype over several years, emphasizing an all-or-nothing funding model to align incentives between creators and backers. The platform launched publicly on April 28, 2009, at 4:27 p.m. EST, initially hosting projects in categories like , , and . Early projects included Chen's own endeavor and singer-songwriter , which reached its goal within one day, demonstrating immediate viability. Operating from founders' apartments initially, Kickstarter incorporated as a for-profit public benefit corporation in New York, prioritizing creative projects over to foster non-commercial artistic expression. By January 2010, the team expanded into a dedicated office in Manhattan's , adding staff like Cassie Marketos for community management and Fred Benenson for product development. Growth accelerated steadily through 2012, with 3,910 projects successfully funded in , raising $27,638,318 from backers selecting rewards like early access or merchandise. In 2011, successful projects surged to 11,836, reflecting broader adoption amid economic recovery and rising interest in independent creation; by October, backers exceeded 1 million, with repeat supporters comprising about 16% of the total. Project success rates hovered between 40% and 45%, higher than later averages due to smaller goals and niche communities in early years. Milestones included the first surpassing $1 million in pledges—Casey Hopkins's Elevation Dock accessory—on February 9, 2012, alongside reaching 100,000 successful projects overall. This period established Kickstarter's model of democratized funding, though it also highlighted dependencies on viral promotion and creator fulfillment capabilities.

Expansion and Key Milestones (2013–2020)

In 2014, Kickstarter achieved a significant funding milestone when total pledges surpassed $1 billion on March 3, marking cumulative support from 5.7 million backers across creative projects. This rapid growth reflected the platform's expanding user base and project volume, with over half of the $1 billion pledged in the preceding 12 months alone. Platform statistics indicated sustained increases in successful projects, particularly in technology and design categories, driven by high-profile campaigns like the , which raised $13.28 million in August 2014 and became the most-funded project to date. International expansion accelerated during this period, broadening access for creators beyond . On September 9, 2013, Kickstarter enabled project creation from , followed by launches in , , and on September 15, 2014. By August 31, 2016, the platform entered with support for projects based in and , its first markets in the region. These additions facilitated localized currency pledges and compliance with regional regulations, contributing to diversified backer participation while maintaining the all-or-nothing funding model. A pivotal corporate occurred on September 20, 2015, when Kickstarter reincorporated as a public benefit corporation (PBC), legally committing to balance profit with public benefits such as advancing arts, culture, and community support. This status obligated the company to donate 5% of annual post-tax profits to initiatives addressing arts education and , with no opposition from shareholders or founders. The change aligned with Kickstarter's emphasizing ethical practices and creative ecosystem sustainability. Key project successes underscored the platform's influence, including the Pebble Time smartwatch campaign in February 2015, which raised $20.3 million from over 78,000 backers and set a new funding record. Subsequent milestones included Shenmue III's $6.33 million for video game revival in 2015, Pebble 2's $12.78 million in 2016, and Kingdom Death: Monster's $12.4 million for tabletop gaming. By 2016, Kickstarter projects had generated approximately 283,000 temporary jobs, highlighting economic ripple effects.

Recent Evolution and Challenges (2021–Present)

In the period from 2021 onward, Kickstarter experienced steady but uneven growth amid broader market maturation. By August 2025, the platform had facilitated over $8.7 billion in total pledges from more than 24.47 million backers across approximately 650,000 projects, with a funding success rate stabilizing around 42 percent. However, category-specific trends revealed slowdowns, particularly in tabletop games, where 2024 dollars raised remained flat year-over-year, prompting competitors like Gamefound to gain and aim to dominate the niche by 2025. To counter this, Kickstarter announced a 2025 product roadmap featuring enhanced funding tools, improved backer interfaces, and trust-building mechanisms such as better project verification, reflecting efforts to adapt to creator demands and retain dominance. Emerging trends included rising in AI-integrated projects, sustainable initiatives, and gaming, with the first half of 2025 showing resilience despite post-pandemic adjustments. Internally, Kickstarter grappled with labor challenges following its 2020 vote, as workers under Kickstarter United ratified their first agreement in June 2022 after protracted negotiations. Tensions resurfaced in 2025, culminating in an October strike authorization by 85 percent of union members over demands for a , minimum salary guarantees, and protections against , highlighting ongoing disputes over work conditions in a remote-heavy tech environment. Persistent challenges included and fulfillment risks, with approximately 9 percent of projects failing to deliver rewards and 8 percent of pledged dollars tied to such failures, eroding backer confidence. Reports of scams proliferated, including deceptive campaigns misusing funds or vanishing post-funding, as documented in analyses of over 100 fraudulent cases from onward, often involving unverified creators or exaggerated prototypes. Backer complaints, such as unresolved projects, underscored criticisms of the platform's limited intervention, as Kickstarter's all-or-nothing model and refund policies rely heavily on creator accountability rather than proactive , exacerbating risks in a saturated market with declining novelty appeal for some categories. These issues, compounded by regulatory gaps in oversight, have prompted calls for stronger verification tools, though implementation remains incremental.

Business Model

Core Funding Mechanics

Kickstarter employs an all-or-nothing funding model, requiring projects to establish a specific monetary goal and a fixed campaign duration, typically ranging from 1 to 60 days. Backers submit pledges during this period, but charges are only processed if the total pledged amount meets or exceeds the goal by the deadline; failure to do so results in automatic cancellation of all pledges, with no funds exchanged and no obligations incurred by backers. This approach, adopted at the platform's inception on April 28, 2009, seeks to safeguard creators by ensuring they receive adequate capital to fulfill commitments, while mitigating backer risk from underfunded ventures that might otherwise lead to incomplete deliveries. Pledges represent commitments from backers, often tied to tiered rewards such as early access to products, exclusive merchandise, or personalized acknowledgments, which creators detail in their campaign descriptions. The platform authorizes methods like cards at pledge time but holds off on final collection until success is confirmed, allowing backers to withdraw or adjust pledges beforehand if desired. Creators determine goals based on projected expenses—including production, materials, shipping, and platform fees—to cover the minimum viable execution of the project, with recommendations emphasizing conservative estimates to account for uncertainties. Successful campaigns incur a 5% platform fee deducted by Kickstarter from the gross funds raised, alongside processing charges handled by third-party providers. In the United States, these processing fees equate to 3% plus $0.30 per pledge, or a discounted 5% plus $0.08 for pledges under $10 to encourage smaller contributions; international rates vary by region and currency. Unsuccessful projects incur no fees, preserving creator resources for future attempts, though creators must still manage any preparatory costs independently.

Project Categories and Eligibility

Kickstarter classifies projects into 15 primary categories to organize creative endeavors and facilitate discovery by backers: , , Crafts, , , , Film & Video, , , , , , , , and Theater. Each category encompasses subcategories for more precise alignment, such as Ceramics or under , under , or Gadgets under ; creators select one primary category and optional subcategory during project setup, as projects cannot span multiple main categories. This structure, established since the platform's early years and unchanged as of 2025, prioritizes creative output over commercial ventures, with , , and historically dominating in pledges raised. Eligibility requires projects to embody a discrete creative goal with a defined timeline and deliverable rewards to backers, excluding pure , charity drives, equity offerings, or prohibited items like offensive materials, drugs, or weapons. Creators must be at least 18 years old, residents of supported countries (including the , , , and select others in and as of 2024), and possess a valid debit or for potential fees; entities and nonprofits qualify if meeting these criteria and structuring campaigns as reward-based rather than investment-seeking. Projects undergo pre-launch review for compliance, with violations leading to suspension; the all-or-nothing funding model mandates full goal attainment within 30-60 days or refund of pledges.

Economic Structure and Platform Revenue

Kickstarter employs an all-or-nothing funding mechanism, requiring projects to meet or exceed their creator-set funding goal within a specified campaign duration—typically 30 days, though extendable to 60 days—before any pledges are collected from backers; failure to reach the goal results in no charges to backers and no funds disbursed to creators. This structure minimizes financial risk for backers and incentivizes creators to propose viable projects with realistic goals, as unsuccessful campaigns yield zero revenue for the platform. Upon successful funding, Kickstarter deducts a flat 5% platform from the total amount raised, applied to the gross pledge total before any refunds or adjustments. fees, managed via Stripe, add 3% to 5% of the total plus fixed per-transaction charges of approximately $0.20 to $0.30 per successful pledge, varying by pledge amount and backer location. Creators receive the net amount after these deductions, with no upfront listing or subscription fees required to launch a campaign. The platform's revenue model relies exclusively on these success-based fees, generating income solely from funded projects without charging for unsuccessful ones, which accounted for the majority of campaigns given a historical success rate of approximately 38% as of early 2025. In 2024, this yielded platform revenue estimated in the range of $9.5 million, derived from fees on roughly $706 million in total pledges across 35,512 launched projects. No evidence indicates significant alternative revenue streams, such as advertising or premium services, with the fee structure prioritizing alignment between platform viability and project success.

Operational Guidelines and Risk Management

Creators must be at least 18 years old and permanent residents of eligible countries, with access to a valid debit or credit card and, for U.S.-based projects, a U.S. Social Security Number or Employer Identification Number for tax purposes. Projects operate under an all-or-nothing funding model, where funds are only collected if the goal is met within the set duration, typically 30 days, emphasizing community validation before commitment. Operational rules mandate that projects produce tangible creative outputs shared with backers, with strict prohibitions on charity fundraising, equity offerings, financial incentives, or items like prohibited weapons and offensive materials. Honesty in project descriptions, statistics, and prototypes is required; for hardware and product design, working prototypes must be demonstrated, barring photorealistic renderings that could mislead backers. Risk management begins with mandatory disclosure of potential challenges in a dedicated "Risks and Challenges" section, compelling creators to outline realistic hurdles such as production delays or technical issues to inform backer expectations. Backers bear primary responsibility for assessing these disclosures, project updates, and creator track records, as Kickstarter explicitly states it functions as a platform for experimentation rather than a retail guarantee, offering no inherent protections against non-delivery. Creators are obligated to fulfill promised rewards or provide refunds where feasible, or transparently explain failures, with the platform facilitating creator-initiated refunds post-funding but retaining its 5% fee plus processing costs unless specified otherwise. Kickstarter's Trust and Safety team enforces compliance through account suspensions or project bans for violations like or , though it does not proactively verify fulfillment, relying instead on reported issues and vigilance. This decentralized approach mitigates platform liability but exposes backers to inherent uncertainties, with empirical data indicating that while most projects deliver, a subset—estimated at around 10-15% based on creator self-reports—face significant delays or partial non-fulfillment, underscoring the causal link between optimistic projections and execution risks. Legal recourse for backers remains limited to creator contracts or external claims, as the platform's terms disclaim retailer status and emphasize creator accountability.

Notable Projects

Highest-Funded Successes

Kickstarter's highest-funded successful campaigns have largely featured consumer technology, board games, and initiatives, demonstrating the platform's appeal for ambitious hardware and creative content. These projects exceeded their funding goals by wide margins, often surpassing 2,000% of targets and attracting tens of thousands of backers. The record for the most funded project is held by eufyMake's E1, a personal 3D-texture UV printer launched in April 2025, which raised $46,762,258 from 17,822 backers over 60 days, achieving 9,352% of its $500,000 goal. This eclipsed the prior benchmark set by author Brandon Sanderson's "Surprise! Four Secret Novels" in March 2022, a effort for four unpublished fantasy books with exclusive editions and merchandise, totaling $41,754,153 from 185,341 backers. Earlier standouts include the in 2015, which garnered $20,338,986 from 78,471 backers for a color e-paper compatible with smartphones. The , a multifunctional chest with integrated and speaker, collected $13,285,226 from 62,642 backers in 2014, though the company later encountered severe fulfillment difficulties leading to . The board game Frosthaven, sequel to , raised $12,969,608 from 83,193 backers in 2020, establishing it as the highest-funded on the platform at the time.
ProjectFunding AmountBackersYearCategory
eufyMake E1$46,762,25817,8222025Technology
Four Secret Novels$41,754,153185,3412022Publishing
$20,338,98678,4712015Technology
$13,285,22662,6422014Consumer Goods
Frosthaven$12,969,60883,1932020Games

Influential Creators and Case Studies

Eric Migicovsky's Pebble campaigns exemplify serial success in hardware . The initial E-Paper Watch launched on April 23, 2012, raising $10,266,845 from 68,929 backers and establishing viability for development outside traditional venture funding. The 2015 follow-up exceeded $20 million in pledges, reinforcing Migicovsky's influence in iterating on through repeated platform use. In video games, Tim Schafer's Adventure, initiated February 8, 2012, collected $3,336,371 from 87,142 backers, demonstrating how established creators could fund narrative-driven titles by appealing directly to enthusiasts disillusioned with industry shifts toward mobile gaming. Similarly, Brian Fargo's leveraged Kickstarter for in 2012, raising over $2.9 million to resurrect a classic RPG series and stabilize the studio, followed by Torment: Tides of in 2013, which further validated for role-playing game revivals. Elan Lee's card game, launched January 29, 2015, secured $8,782,571 from 219,382 backers—the highest backer count in platform history at the time—illustrating the draw of simple, viral designs co-created with artist Matthew Inman. For niche markets, Stefan Pokorny's Dwarven Forge ran multiple campaigns for modular miniature terrain, cumulatively raising about $6.5 million by mid-2015, fostering a dedicated community among gamers through high-quality, customizable products. These cases highlight creators who not only achieved funding but scaled operations, influencing category-specific strategies on Kickstarter.

Documented Failures and Cancellations

The , launched in July 2014, raised $13,285,226 from over 62,000 backers for a multi-functional cooler featuring a , speaker, and USB charger. Despite initial production attempts, the project faced chronic delays, quality issues, and escalating costs, culminating in the company's shutdown in December 2019, with approximately 20,000 backers receiving no product despite pledges averaging $185 plus shipping. The Zano mini-drone campaign, active in late 2014, secured £3.74 million (approximately $5.7 million) from nearly 10,000 backers promising autonomous swarming drones with HD cameras. Technical flaws, including unstable flight control and battery life shortfalls, combined with mismanagement, led to the creator Torquing Group's in January 2015, with only a handful of non-functional prototypes shipped and most backers receiving nothing. Amabrush, a 2017 automatic project raising about $3.4 million, aimed to clean teeth in 10 seconds via a mouthpiece design but collapsed into in 2019 due to sourcing failures and cost overruns, leaving backers without deliverables. Skarp, a 2015 campaign that garnered $4 million by claiming hair-melting , suspended operations after prototypes proved ineffective and violated platform guidelines on unproven tech, resulting in partial refunds for some but widespread dissatisfaction. Independent analyses indicate that around 9% of funded Kickstarter projects fail to deliver rewards, often attributable to underestimation of production complexities in hardware categories. Cancellations post-funding remain rare but occur in cases of insurmountable technical barriers or creator abandonment, with Kickstarter facilitating refunds where funds remain accessible, though recovery varies.

Economic and Industry Impact

Quantitative Performance Metrics

Kickstarter has amassed $9,233,011,162 in total pledges across its projects. This funding has supported 287,875 successfully funded projects, with contributions from 24,770,172 unique backers who have made 105,619,348 pledges in total. Among these backers, 8,641,401 are repeat supporters, indicating sustained platform engagement. The average pledge amount equates to approximately $87.50, derived from total pledges divided by the number of individual contributions. Success rates for projects reaching funding goals hover around 39-40%, with independent analyses placing the global figure at 39.11% based on historical data up to late 2024. Official metrics highlight that 9% of projects receive no pledges at all, while 79% of those surpassing 20% of their funding goal ultimately succeed. Most successful projects raise under $10,000, though outliers have achieved seven- or eight-figure sums, underscoring a skewed distribution toward modest campaigns. Post-funding performance reveals challenges in delivery: 9% of projects fail to provide rewards to backers, accounting for 8% of pledged dollars directed to such failures and affecting 7% of backers who receive nothing. These metrics reflect Kickstarter's role in channeling funds primarily to smaller-scale creative endeavors, with limited scalability for high-volume successes amid high attrition in early pledge phases.
MetricValueSource
Total Pledges$9,233,011,162
Successful Projects287,875
Total Backers24,770,172
Total Pledges Made105,619,348
Projects with Zero Pledges9%
Delivery Failure Rate9% of projects

Broader Effects on Innovation and Markets

Kickstarter has democratized access to capital for early-stage , particularly in creative and consumer product sectors, by enabling creators to secure funding from dispersed backers without relying on institutional investors. Empirical evidence shows that heightened Kickstarter activity correlates with increased ; for instance, a doubling of funded projects at the county-industry level between and 2018 was associated with a 3-5% rise in new business formations, especially in industries requiring lower startup capital. This mechanism has lowered , allowing niche ideas to reach markets that traditional financing might overlook, thereby fostering a broader range of product experimentation and market testing prior to production. The platform's all-or-nothing funding model provides a built-in signal of viability, as successful campaigns validate and build early customer bases, which can accelerate product development cycles and reduce inventor risk. highlights how enhances innovation by facilitating pre-market feedback loops, enabling entrepreneurs to refine offerings based on backer input and establish that extends beyond the campaign. A 2016 analysis of Kickstarter's ecosystem estimated that backers viewed over 50% of projects as innovative, with more than 4,200 patents filed in connection to funded initiatives, underscoring tangible contributions to generation in fields like . However, Kickstarter's influence on markets reveals limitations in promoting breakthrough , as backers often prioritize familiar, incremental improvements over high-risk, disruptive concepts, potentially skewing capital toward safer bets that align with existing preferences rather than pioneering shifts. This crowd-driven can lead to market saturation in popular categories, such as , where numerous similar projects compete, diluting individual impact and straining supply chains for small-scale producers. Nonetheless, the platform has expanded niche markets by scaling demand for specialized goods, contributing to economic spillovers like job creation in —estimated at over 10,000 full-time equivalents from successful projects as of 2016—while challenging incumbents to respond to faster, more agile entrants.

Competitive Landscape and Alternatives

Kickstarter operates within the reward-based crowdfunding segment, where backers receive non-financial perks such as products or experiences in exchange for pledges, distinguishing it from , equity, or lending models. The platform's all-or-nothing funding mechanism—requiring projects to meet or exceed their goal to receive funds—prioritizes commitment but contrasts with competitors offering greater flexibility. As of 2024, the global market was valued at approximately USD 1.60 billion, with projections to reach USD 1.83 billion in 2025, driven by diverse platforms catering to creative, tech, and entrepreneurial needs. emerges as Kickstarter's primary rival in reward-based , having facilitated over $1 billion in pledges since 2008, with a focus on and projects that often continue funding post-campaign via its InDemand feature. Key differences include funding flexibility: permits creators to retain partial funds even if goals are unmet, reducing risk compared to Kickstarter's binary success model, which has led some projects to migrate for ongoing sales potential. Both charge a 5% platform fee plus 3-5% payment processing, but 's broader post-campaign tools appeal to hardware startups, as evidenced by successful gadgets like the raising millions. , by contrast, shifts to a subscription-based model for recurring creator support, amassing over $4 billion in payouts to artists and podcasters by , ideal for ongoing content rather than one-off launches. dominates donation-based for personal and charitable causes, processing billions annually with no platform fee (only 2.9% + $0.30 processing), but lacks reward structures, making it unsuitable for product development. Equity crowdfunding platforms like StartEngine and Wefunder provide alternatives for startups seeking investment returns rather than perks, regulated under U.S. JOBS Act provisions allowing non-accredited investors. In 2024, StartEngine raised over $10 million across campaigns, emphasizing scalability for businesses beyond Kickstarter's creative scope. and , prominent in , have funded thousands of companies with equity stakes, aggregating over €1.5 billion by 2023. These models introduce investor protections and potential dilution risks absent in reward , appealing to ventures prioritizing capital over community validation.
PlatformFunding ModelPlatform FeePrimary Focus
Flexible reward/InDemand5%Tech, gadgets, ongoing sales
Subscription/donation5-12%Recurring creator support
Donation-based0% (processing only)Personal causes, emergencies
StartEngineEquity (Reg )7-10%Startup investments
Non-platform alternatives include traditional , which disbursed $170 billion globally in 2024 but favors scalable tech over niche creatives, or self-funding via , though these lack Kickstarter's marketing amplification through viral pledges. has intensified with niche sites like FundRazr for flexible creative campaigns and Ko-fi for tip-based micro-support, fragmenting the market but underscoring Kickstarter's established brand for high-profile launches.

Controversies

Project Delivery and Scam Allegations

A significant portion of successfully funded Kickstarter projects encounter delays in reward delivery, with empirical analysis indicating that only 65% fulfill pledges on schedule. According to a 2015 study commissioned by Kickstarter and conducted by Wharton professor Ethan Mollick, analyzing over 65,000 projects from 2009 to 2015, approximately 91% of successful campaigns ultimately delivered rewards, though many did so late, with average delays exceeding three months in hardware categories. This underscores the inherent risks of crowdfunding, where creators often underestimate manufacturing complexities, supply chain issues, or scaling production from prototypes, leading to causal failures rooted in overoptimism rather than malice. Outright non-delivery affects about 9% of successful projects, resulting in 8% of pledged funds supporting undelivered rewards and impacting 7% of backers who received nothing. Hardware and technology projects exhibit higher failure rates due to technical hurdles, while categories like games and publishing fare better, per the same analysis. Kickstarter's terms explicitly warn backers that funding does not guarantee delivery, positioning pledges as support for ideas rather than pre-orders, which mitigates platform liability but exposes backers to loss. Chargebacks via credit cards remain a primary recourse, though time-limited and not always successful post-fulfillment attempts. Scam allegations arise frequently in online forums and media, often conflating legitimate failures—such as undercapitalization or execution errors—with intentional , though proven cases remain rare given the difficulty in establishing fraudulent intent under U.S. law. In one landmark instance, the charged Erik Chevalier in 2015 for a 2012 Kickstarter campaign for the The Doom That Came to Atlantic City, which raised over $120,000 but delivered minimal rewards after he diverted funds to personal expenses and unrelated projects; Chevalier settled without admitting wrongdoing, agreeing to future transparency requirements and a monetary judgment. Kickstarter responds to credible complaints by suspending accounts and cooperating with authorities, but critics argue the platform's decentralized model and lack of post-funding oversight enable opportunists, with backer surveys revealing widespread dissatisfaction in failed cases. Despite this, comprehensive data suggest outright constitute a small fraction of issues, as the all-or-nothing funding mechanism deters pre-launch , shifting risks to fulfillment competence. Kickstarter enforces intellectual property policies by responding to valid claims under the for s, reviewing allegations, and removing projects from public view if a court order confirms infringement. In November 2011, Kickstarter initiated litigation against ArtistShare (operating as Fan Funded LLC) in the U.S. District Court for the Southern District of New York, seeking a of non-infringement and invalidity of ArtistShare's U.S. No. 7,680,711, which covered methods for funding creative projects via online networks, after ArtistShare demanded licensing fees. On June 29, 2015, Judge ruled the patent invalid under 35 U.S.C. § 101 for claiming an abstract idea without sufficient inventive concept, freeing Kickstarter from royalty obligations and setting a precedent against broad patenting of mechanics. A prominent case arose in November 2012 when Corporation filed suit in the U.S. District Court for the of against Formlabs Inc. and Kickstarter, alleging willful infringement of four patents related to technology by the Form 1 3D printer, which had raised $2,945,885 on Kickstarter in 2012. The claims centered on Kickstarter's role in hosting and promoting the campaign, raising questions of platform contributory liability. In December 2014, and Formlabs settled with undisclosed terms, leading to dismissal of all claims with prejudice; Kickstarter faced no adverse judgment, underscoring limited platform exposure under safe harbor provisions like the DMCA when not directly manufacturing infringing products. Trademark disputes have frequently led to campaign suspensions, as Kickstarter treats project pages as advertisements potentially liable for infringement absent exemptions. For instance, the "Steamcraft" project was halted in 2015 following a claim, prompting creators to rebrand and relaunch. In August 2023, Medium Brow Games' "Farms Race" was removed after Stonemaier Games asserted IP rights over similar mechanics and themes, illustrating how pre-launch clearance failures can derail funding. These incidents demonstrate Kickstarter's practice of prioritizing claimant notifications to mitigate legal risks, though creators retain primary responsibility for IP diligence, with backers often left without recourse beyond platform .

Internal Operations and Labor Dynamics

Kickstarter's internal labor dynamics have been marked by efforts to unionize amid tensions with . In , the company faced accusations of union-busting after firing three employees involved in organizing activities, including two union organizers within eight days and the head of comedy and podcasts, Taylor Moore. Kickstarter denied the firings were related to union efforts, attributing them to performance and conduct issues, though workers filed charges with the . Employees proceeded with unionization, voting 46 to 37 in favor on February 18, 2020, forming Kickstarter United affiliated with the Office and Professional Employees International Union (OPEIU) Local 153, marking the first white-collar tech union in U.S. history. The company recognized the union following the vote supervised by the NLRB. In May 2020, amid impacts and post-union tensions, Kickstarter laid off 25 employees, approximately 18% of its workforce, as disclosed in a New York state regulatory filing. The union secured its first agreement in 2022, covering wages, hours, and conditions. Kickstarter transitioned to a fully remote in 2020 and implemented a four-day, 32-hour workweek, though not initially codified in contract terms. In June 2024, the company restructured leadership, terminating several senior executives as part of a effort following , while promoting internal staff. As of 2025, remain strained during negotiations for a second contract, begun in April. On September 26, 2025, union members authorized a strike, which commenced October 2, 2025, involving dozens of remote workers protesting unresolved demands to codify the and establish a $85,000 minimum salary floor for livable wages. The strike, described as historic for its remote nature, threatens platform operations and highlights ongoing disputes over compensation and work protections.

Experimental Initiatives and Setbacks

In December 2021, Kickstarter announced plans to develop an open-source protocol built on the , aiming to decentralize aspects of its platform and incorporate technologies such as cryptocurrency payments and potentially a (DAO) for governance. The initiative, which included a $100 million from Andreessen Horowitz's crypto fund, was positioned as a means to innovate the creative funding model and address the platform's stagnating growth, with venture capitalist advocating for to empower creators through ownership and reduced intermediaries. However, the proposal diverged from Kickstarter's established all-or-nothing, fiat-currency-based model, prompting concerns over volatility, environmental impact of proof-of-work systems, and alignment with the platform's community-driven ethos. The announcement triggered immediate and widespread backlash from Kickstarter's user base, particularly among tabletop game creators who comprised a significant revenue portion. High-profile creators publicly threatened boycotts, citing opposition to cryptocurrencies and non-fungible tokens (NFTs) as antithetical to Kickstarter's creative, non-speculative roots, leading to an estimated exodus of projects and a 12.4% drop in tabletop category revenue, equating to $33 million in lost funds for 2022. Critics, including staff and long-time backers, argued that the pivot risked alienating the core community without clear benefits, as blockchain's promised efficiencies like lower fees and global access were unproven in a crowdfunding context dominated by small-scale, trust-based pledges. In response, Kickstarter clarified it would not migrate its primary website to the new protocol but would launch it separately, while forming a Community Advisory Council (CAC) in March 2022 to gather feedback. The CAC, comprising creators and backers, reviewed the initiative and recommended prioritizing platform reliability and tools over untested integration, influencing Kickstarter to de-emphasize the experiment by June 2022. Ultimately, the protocol failed to gain traction or achieve its goals, with no significant adoption by 2024, contributing to internal strategic drift and underscoring the challenges of imposing experimental decentralized technologies on a centralized, community-reliant service. This setback highlighted tensions between venture-backed innovation and user preferences, as the platform reverted focus to incremental improvements like enhanced creator tools rather than radical overhauls.

References

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