Kickstarter Case Study2
Abstract
For this paper I was asked to review the Kickstarter case study in Ch. 1 of Information Technology for Management: Advancing Sustainable, Profitable Business Growth. In this paper I will discuss the background of Kickstarter and how it works. I will also show the advantages of crowd funding.
Kickstarter started in 2009 by Perry Chen, Yancy Strickler, and Charles Adler. It is based in Brooklyn, NY. Kickstarter is a website based on crowd funding. Crowd funding is defined as the use of small to large donations from individuals to finance a new business venture. Crowd funding makes use of the easy accessibility of friends, family and colleagues through social networks or direct contact by visiting their website. Crowd funding allows companies to expand and gather possible investors beyond traditional routes like banks, investors, venture capitalists, and relatives. (investopedia.com 2014)
Crowd funding does provide benefits to entrepreneurs. The first is confirming that an existing prototype or process actually works. Many investments are made on blind convictions. At least with crowd funding there are people that believe. That will help you sleep at night. The second is that big brands will use it to gain capital. Instead of launching a new product they may use a site like Kickstarter to see how the product or service will affect the market. The third is that crowd funding is based on social networks. It will allow for a new set of relationships to form with upcoming and current companies. This leads to the fourth and fifth benefits. This permits the creation for up and coming businesses and generates new jobs for people in the US and worldwide without having to go through traditional routes. This site and the companies started create jobs that did not exist prior to their formation. (xprize.org. 2014)
Kickstarter is the world’s largest crowd funding site. It can be compared to Ebay because it directly connects consumers and/or businesses via
For this paper I was asked to review the Kickstarter case study in Ch. 1 of Information Technology for Management: Advancing Sustainable, Profitable Business Growth. In this paper I will discuss the background of Kickstarter and how it works. I will also show the advantages of crowd funding.
Kickstarter started in 2009 by Perry Chen, Yancy Strickler, and Charles Adler. It is based in Brooklyn, NY. Kickstarter is a website based on crowd funding. Crowd funding is defined as the use of small to large donations from individuals to finance a new business venture. Crowd funding makes use of the easy accessibility of friends, family and colleagues through social networks or direct contact by visiting their website. Crowd funding allows companies to expand and gather possible investors beyond traditional routes like banks, investors, venture capitalists, and relatives. (investopedia.com 2014)
Crowd funding does provide benefits to entrepreneurs. The first is confirming that an existing prototype or process actually works. Many investments are made on blind convictions. At least with crowd funding there are people that believe. That will help you sleep at night. The second is that big brands will use it to gain capital. Instead of launching a new product they may use a site like Kickstarter to see how the product or service will affect the market. The third is that crowd funding is based on social networks. It will allow for a new set of relationships to form with upcoming and current companies. This leads to the fourth and fifth benefits. This permits the creation for up and coming businesses and generates new jobs for people in the US and worldwide without having to go through traditional routes. This site and the companies started create jobs that did not exist prior to their formation. (xprize.org. 2014)
Kickstarter is the world’s largest crowd funding site. It can be compared to Ebay because it directly connects consumers and/or businesses via
References: http://www.investopedia.com/terms/c/crowdfunding.asp © 2014, Investopedia, LLC. http://www.investopedia.com/terms/s/social-commerce.asp © 2014, Investopedia, LLC. https://www.kickstarter.com/projects/1089986125/traveling-219-more-stories-from-the-allegheny-moun?ref=discovery © 2014 Kickstarter, Inc. http://www.xprize.org/news/ceo-corner/top-5-benefits-of-crowd-funding ©2014 XPRIZE Foundation. Reserved.