This article was taken from the February 2014 issue of Wired magazine. Be the first to read Wired's articles in print before they're posted online, and get your hands on loads of additional content by subscribing online.
For a platform that is dedicated to creative projects, Kickstarter's financials are impressive: since it launched in April 2009, more than five million people have backed more than 52,000 projects. A total of $891 million (£547 million) has been pledged, $763 million (£461 million) of which has gone to successful projects, and 54 schemes have, to date, raised more than $1 million (£604,000). Established names such as Charlie Kaufman, Amanda Palmer, James Franco, Zach Braff and Spike Lee have held out their hands on the site.
Wired spoke to Yancey Strickler, 35, cofounder and, as of 1 January, its new CEO, to ask a question: as Kickstarter builds a global business, can it retain its creative soul?
Wired: You're approaching $1 billion (£604 million) in backing put up on the site. Did you ever think Kickstarter would get this big?
Yancey Strickler: We saw the potential of Kickstarter three days after we launched. A project called Drawing for Dollars raised $35 (£21) from three backers -- the first funded project. It sounds modest now, but it was validation that the system could work. Considering that Perry [Chen, cofounder and chairman] had been working on Kickstarter for eight years before we launched, it's hard to overstate what a big deal this was. It was finally real! And it worked!
Kickstarter wasn't the first crowdfunding platform, but it has become the best known. Why do you think that is?
Art and culture have long been funded in a very similar way.
Mozart, Beethoven, Twain and Alexander Pope used similar models.
By taking this model to the web, everyone can be a part of bringing something creative to life. This is a huge leap in granting everyone creative freedom to make the things they want to make.
We spent years designing and creating this model, and it shows.
Many of the most innovative things happening anywhere in culture and technology got their start on Kickstarter -- and millions of people have come together to make them. There's nothing like it anywhere else.
Commentators have said President Obama -- inspired by the success of Kickstarter -- made it easier to crowdfund investment with the US JOBS Act [to encourage employment]. Will you target that market?
We've been very open about the fact that we will not contort Kickstarter to fit crowd investing. Retaining creative control and ownership of their work has helped Kickstarter creators, and the creative economy. Selling shares in yourself, or your work, generally doesn't work out. This is why you hear about musicians being in debt to record labels 25 years after their debut album came out. It's not a healthy system.
Ideas are funded on Kickstarter because people are excited to see them exist, not because they might make money. Kickstarter makes projects possible that would never stand a chance on Wall Street, and creators get to keep their rights and creative control.
This is a feature, not a bug.
What have been some of your favourite campaigns, and why?
Matt Porterfield's movies are some of my favourites, and he's made two through Kickstarter. ArduSat recently launched two satellites into orbit, and ARKYD is sending the first publicly controlled telescope into space. Oculus Rift is making virtual reality an actual reality. The Texas Tribune and ProPublica have funded innovative journalism projects. Mysterious Letters is sending everyone in the world a handwritten letter. I could go on and on.
What makes a successful campaign?
When someone is sharing something they're excited to make; when they treat their backers as peers rather than customers; and when they share the journey of bringing something to life with the world. A good mantra: share, don't sell.
What's been the hardest thing to manage?
We're learning as we go. There's no owner's manual. The most interesting challenges have to do with governance. Kickstarter is its own creative economy, and economies need structure and boundaries to produce the best outcomes for all involved. Because projects are often funding things on the bleeding edge, we're tasked with thinking about how the future should be governed. We take this responsibility very seriously.
Some estimate the minimum cost of a Kickstarter at $1,000 (£604), and celebrities such as Zach Braff and Spike Lee are using the site to fund their work. Does that affect smaller users?
This couldn't be further from the truth. Projects raising less than $10,000 (£6,042) make up more than 90 per cent of those on Kickstarter. Although the projects at the upper end are more prominent, research has shown that these blockbuster projects bring new backers and also new creators. Kickstarter is a better tool for everyone as a result.
We're led to believe that if someone is winning, then someone else must be losing. But it's not true here. Kickstarter is a level playing field. It's a tool for everyone to do creative things.
Spike Lee makes his movie right next to a kid who was inspired to become a film-maker by Do The Right Thing. This is amazing! We've all wished for something like this for ages. A truly democratic place where everyone can share their ideas with the world.
What will Kickstarter look like in five years?
Our mission is to bring creative projects to life. It's become an important engine for culture. In five years, Kickstarter will look and feel pretty much the same, but the rest of the world will look a lot more like Kickstarter.
Wired's Kickstarter picks:
Pebble
Raised: $10,266,845 (£6,203,535)
Kickstarter's best-funded project remains the Pebble, the connected watch for iPhone and Android that spawned scores of imitators.
Double Fine Adventure
Raised: $3,336,371 (£2,015,935)
Other games have since raised more, but Tim Schafer's Double Fine Adventure proved the model worked for gaming.
Lowline
Raised: $155,186 (£93,768)
An ambitious attempt to create an underground equivalent of New York's famous High Line, on the Lower East Side. Scheduled for 2018.
Civilian Space Suit
Raised: $27,632 (£16,696)
Final Frontier Design Kickstarted a space suit that conforms to Nasa standards. $10,000 (£6,042) earned backers a space suit; $550 (£332) got you space leggings.
Good & Proper Tea
Raised: £14,682
Launched on the first day of Kickstarter opening to the UK, this loose-leaf-tea truck from Emilie Holmes now roams the thirsty streets of London.
This article was originally published by WIRED UK
