Donnerstag, 14. März 2013

Crowdfunding Is Slowing Down

What Does It All Mean?

So what does this mean? It may be too soon to tell. After all, I believe that interest in Kickstarter and crowdfunding has never been higher, and just looking at all the excitement at SXSW this week and at CES in January, one sees many entrepreneurs  still embracing Kickstarter and crowdfunding over more traditional financing routes.

However, I would suggest that because Kickstarter and crowdfunding experienced a huge rush of new projects in 2012,  there may have been a slight dissipation in the total number of new potential new projects as 2012 wore on.

Some entrepreneurs and creatives may also have felt that the early arriver advantage in crowdfunding has started to ebb, which may be keeping some on the sidelines. As with any new market, those who first embrace the change are most likely to see early success, but as the market matures the likelihood for success may go down. 

Some entrepreneurs, like Chris Taylor of Gas Powered Games, have recently suggested as much, indicating that crowdfunding is getting harder to do as the newness wears off and the market gets more crowded.

I think he’s right, in large part because the data validates his point. In my next post, I’ll look at some differences in success rates over time for Kickstarter overall, and for specific verticals. Full text