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
