5 Most Successful Companies Built On Kickstarter: Crowdfunding Triumphs

Kickstarter has emerged as a powerful platform for entrepreneurs and creatives to bring their innovative ideas to life through crowdfunding. Since its launch in 2009, the platform has seen a diverse array of projects, with backers providing the necessary funding to make many startup dreams a reality. The success stories that have come out of Kickstarter are a testament to the potency of collective financial support and the public's willingness to invest in unique, promising concepts.

Some Kickstarter campaigns have stood out for their remarkable success, not just in meeting their initial funding goals, but also in translating that early financial endorsement into sustained business ventures. These companies are exemplary cases of how a well-planned crowdfunding campaign can attract a significant number of backers, garner substantial funding, and lay the groundwork for ongoing commercial triumph.

The Rise of Kickstarter and Crowdfunding

Kickstarter has emerged as a pivotal platform in the crowdfunding landscape, transforming how individuals and startups generate funds for projects. This section explores Kickstarter's contribution to crowdfunding, the evolutionary journey of fundraising platforms, and the key mechanics behind successful capital raising.

The Kickstarter Platform

Kickstarter began as a revolutionary idea in the United States, enabling creators to connect with backers who are willing to fund projects they believe in. It stands out by conveying compelling campaign narratives that resonate with potential supporters. Since its inception, it has launched myriad successful products and companies, many of which overachieved their funding goals by appealing to the community through their stories and potential value.

Evolution of Crowdfunding

Crowdfunding has evolved significantly from its early days. From platforms supporting arts and creative projects, it has expanded to include technological innovations, publications, and a variety of other areas. The evolution of crowdfunding demonstrates the shift in the public's role from passive consumers to active backers, investing in the early stages of potentially groundbreaking products like the affordable 3D printers named M3D Micro, or clever innovations like the Travel Jacket by BAUBAX.

Key Mechanics of Fundraising

The key mechanics of fundraising through platforms like Kickstarter hinge on setting clear goals, creating a solid campaign narrative, and engaging with the community. Successful campaigns not only present an attractive idea but also include detailed plans about how the funds will be used, thereby instilling confidence in potential backers. For instance, campaigns tend to have transparent fundraising goals with a specified ore, the minimum amount needed to proceed with the project. These campaigns then offer various incentives for backers at different tiers of investment, ensuring that everyone can participate and feel like part of the project's success.

Notable Kickstarter Success Stories

Kickstarter has been a platform where innovative ideas turn into commercial triumphs, thanks to community support. The following companies not only reached their funding goals but went on to profoundly impact their respective markets.

Pebble's Time in the Sun

Pebble made waves in the technology sector with its Pebble Time smartwatch, leveraging a record-breaking Kickstarter campaign. Raising over $20 million, the project surpassed its funding goal and solidified Pebble's place in the smartwatch industry. The Pebble E-Paper Watch was one of the first to market, setting a standard for future wearable technology with its consumer-focused design and functionality.

The Coolest Cooler Revolution

The Coolest Cooler revolutionized the concept of the portable cooler, making it a multifunctional party-favorite. It crushed its initial goal, raising millions and combining a blender, waterproof Bluetooth speakers, and LED lighting. While it faced some fulfillment challenges, it remains an iconic example of how a creative approach to everyday items can capture the imagination and backing of consumers.

Exploding Kittens: A New Era of Card Games

Exploding Kittens heralded a new era for card games, creating a phenomenon in the gaming community. By meeting its funding goal within minutes and amassing support from over 200,000 backers, it demonstrated the compelling power of a unique idea coupled with smart marketing. The game's success is a testament to how Kickstarter can launch not just a product, but a brand.

The Ouya Console: A New Player in Gaming

The Ouya console broke into the video game industry with the promise of open-source technology and affordable access to games. It amassed significant funds, aimed at challenging the dominance of established players in the console market. Despite a mixed reception, Ouya carved out a niche for itself and highlighted the crowdfunding platform's ability to support ambitious technology ventures.

Marketing and Promotion of Successful Campaigns

Successful Kickstarter campaigns often hinge on strong marketing and promotion strategies that resonate with potential backers. The way a campaign communicates its message, harnesses the power of social media, and engages with its community can make the difference between obscurity and success.

Crafting the Campaign Message

A well-defined campaign message conveys the essence of a Kickstarter project in a compelling and memorable way. Take the Veronica Mars Movie Project, which clearly communicated the fans' longing for a film continuation of the popular TV series. The project used emotive language and references familiar to fans, igniting their enthusiasm. Meanwhile, Project Eternity, a role-playing game, attracted backers by emphasizing its return to classic RPG roots, appealing to both nostalgia and the desire for high-quality gameplay.

Leveraging Social Media Platforms

Effective use of social media platforms like Facebook and Twitter can amplify a campaign's reach and engage a wider audience. Kickstarter campaigns often utilize infographics and presentations to make their messages visually appealing and easily shareable. Utilizing targeted Facebook ads and posts, campaigns like the BauBax Travel Jacket reached millions, becoming the most funded apparel project on Kickstarter.

Mobilizing the Backer Community

Kickstarter campaigns thrive on the support of their backer community. Engaging this community through regular updates, exclusive content, and community challenges can foster a sense of ownership and investment. A project like the Pebble Watch successfully mobilized its backers by allowing them to vote on new features, creating a collaborative atmosphere that encouraged ongoing support and promotion amongst its backers.

Challenges and Considerations in Crowdfunded Ventures

Crowdfunding offers an innovative way to raise capital for new ventures, but successful crowdfunding campaigns must navigate a series of strategic challenges. These challenges include setting realistic funding goals, meeting production demands, and ensuring sustainable growth post-campaign.

Meeting Funding Goals and Deadlines

Setting a clear funding goal that reflects the real costs of project development is crucial. Campaigns must convince consumers of the value of their technology or electronics innovation, often requiring creative storytelling and compelling design to engage potential backers. Achieving the goal within a set deadline necessitates strategic marketing and outreach to build the necessary investment momentum.

Scaling Production and Fulfillment

Once a campaign has reached its funding target, the daunting task of scaling production to meet consumer demand begins. Companies must have a robust plan to address the complex logistics of producing and shipping rewards to backers. Delays in fulfillment can damage consumer trust and negatively impact the company's reputation.

Navigating Post-Campaign Growth

Ensuring sustainable growth after a campaign involves careful planning and execution. The transition from a crowdfunded project to a viable business operation can be challenging. Companies must allocate their funds wisely, often investing in marketing, further product design iterations, and developing an infrastructure that supports customer service and product scaling.

By understanding and preparing for these challenges, crowdfunded companies can enhance their chances of sustainable success in their respective markets.