Kickstarter was one of those services that faced the typical chicken and egg problem of Internet start ups. As a crowd funding platform its success was born out of the exposure it could bring to potential projects and in the beginning that was essentially nothing. As time went on and crowdfunding became more mainstream Kickstarter then became the portal to get projects funded online and since then we’ve seen the projects transform from being mostly single guys in garages to mutli-discplinary teams looking to launch disruptive technology. Whilst I still believe that Kickstarter doesn’t fundamentally change the rules of the funding game the shift of the value judgement from the entity to the wider world is a big one and one that has seen many products come to life that might not have done otherwise.
Of course as the service and the number of projects has grown over the years it was statistically inevitable that things would start to go wrong. Thankfully the majority of the problems faced by Kickstarter campaigns are usually overly ambitious product designers who under estimate the time it will take to get their product to market leading to delays to their initial time frames. There haven’t been that many outright problems either with failed projects never getting any money (and still being publicly accessible after the fact) and there’s only a handful of projects that vanished into the ether, all apparently due to copyright claims.
Still there were a couple high profile cases of projects being showcased that were little more than a concept that someone wanted to create. Now this is the reason why Kickstarter exists, to get projects like that the funding they need to get over that initial hump, however for physical goods having nothing but a couple product renderings can lead to some serious down the road and there were numerous projects that suffered major delays because of this. There were even notable projects that had a prototype but struggled to scale to meet the demand created by their Kickstarter campaign.
Kickstarter, to its credit, has recognised this problem and recently changed the rules, putting it rather bluntly that Kicksater is not a store.
Looking at the changes the first thing you’d notice is the number of projects that were previously funded that would no longer fly under the new rules. Personally I think its a good thing as requiring an actual prototype means that a project creator will have to have gone through many of the initial hurdles to bring the product to reality and thus won’t be using the Kickstarter funds to do this. It does mean that the barrier to entry for product and hardware categories just went up a few notches but it also means that there’s a much higher likelihood that such products will actually come into existence. The change that puts an end to multiple items is done to ensure another Pen Type-A/Pebble situation doesn’t occur again, although there’s still the potential for that to happen.
I think the changes are overwhelmingly positive and whilst there might be some projects excluded from using Kickstarter as a funding platform there’s still many other crowd funding alternatives that still support projects of that nature. It also helps to make sure people understand the (usually low) risks of using Kickstarter as there’s every chance in the world that the product/service will not be viable and neither Kickstarter nor the project founders are under any obligation to issue refunds for projects that fail after funding. This might be spelt out in no uncertain terms in the fine print when you sign up but anything to make people more aware of what they’re getting themselves into to is a good thing and does wonders for Kickstarter’s reputation.
It hasn’t turned me off the idea, that’s for sure.