Crowdfunding 101: Insights from 400k Kickstarter and Indiegogo Campaigns

CROWDFUNDING 101 INSIGHTS FROM 400k KICKSTARTER & INDIEGOGO CAMPAIGNS Crowdfunding's growth, differences between platforms, and best practices for campaign creators Total Amount Pledged The amount pledged to all campaigns on both Kickstarter and Indiegogo will hit an astounding $4.35B by the end of 2015. $138M $I.17B $4.35B Data on this infographic is a snapshot of completed campaigns up to Aug. 7th 2014 2011 2013 2015P Top Cities for Crowdfunding Seattle $36M New York City receives about 10% of all funds pledged on Kickstarter and Indiegogo. San Francisco punches way above its weight, raising 589% more per capita than NYC. NYC $157M Chicago $36M San Francisco $92M LA $146M London $55M 20,713,669 5% 37% Total number of pledges Percent of VC investments Percent of successful campaigns to crowdfunding campaigns that go to female founders run by female founders Success Rate by Category Arts projects do well. Music projects, for example, have large numbers of campaigns and very high success rates. Small-business (SB) campaigns on Indiegogo have the lowest rate of success: 3.1% of 20k campaigns reached their goal. 40% 30% 20% 10% CATEGORY SB SOCIETY LIFESTYLE TECH FASHION PHOTOG GAMES FILM/VIDEO FOOD WRITING DESIGN ART COMICS MUSIC DANCE THEATER CAMPAIGNS 20K 63K 37K 18K 9K 18K 84K IK 26K 12K 20K 6K 49K 4K 14K Comparing the Major Platforms While comparing, keep in mind that Kickstarter is more restrictive than Indiegogo about the campaigns it will host. KICKSTARTER INDIEGOGO $1.2B $378M PLEDGED 15.8M 4.9M PLEDGES TRAFFIC (VISITS / MONTH) 23M 13.4M 154k 246k CAMPAIGNS (COMPLETED) 43.4% 9.8%* SUCCESS RATE *17.1% at fixed funding, 9.5% at flex funding (95.6% of Indiegogo campaigns are flex funding). Note that Kickstarter is more restrictive than Indiegogo about the campaigns it will host. Success is more ambiquous on Indiegogo - founders who choose flexible funding may not meet their goal, but still raise enough to get going. Success Rate by Goal Range The more you ask, the less likely you are to succeed. Note that 53.4% of all campaigns are in the 1k-10k range. KICKSTARTER INDIEGOGO < 1K 61.0% 20.1% 1K - 9,999 49.0% 12.3% Po. 10K - 19,999 35.9% 5.8% 20K - 99,999 24.8% 2.8% O 100K - 999,999 11.8% 0.9% 1M+ 4.5% 0.1% Characteristics of Successful Campaigns Benchmarks for how long your video should be, to how frequently you should update your backers. 35 8. Average number of levels of rewards offered Average length of Average number of updates campaign (days) from successful founders 17 $10 - $25 923 Average number of Most popular contribution Avg. no. of Facebook friends comments reward level of campaign founders 3:04 609 $87 Average pledge Average length of video Average number of words on campaign description THE ULTIMATE GUIDE TO CROWDFUNDING Read the Free Book The Ultimate Guide to Crowdfunding is the most thorough guide to crowdfunding anywhere, packed with case studies and optimizati tips on running a successful campaign. ecommerce.shopify.com/guides/crowdfunding | shopify HiveWire" Data collected by HiveWire (http://bit.ly/1qjnPAz) with credit to Diana Project Shopify and HiveWire are in no way affiliated with Kickstarter or Indiegogo design by @warren