Popular crowdfunding service Kickstarter has finally launched in the UK. The site asks internet donors to donate money to fund creative projects.
Kickstarter launched in the US in 2009 and has provided funding to over 70,000 projects, with pledges adding up to $401 million. In the UK version, launched today, users can pledge anything from £1 and above.
The concept was designed to get creative projects off the ground – the most successful so far has been Ouya, a games console which raised $8,596,474 after initially asking for $950,000. Some of the first UK businesses to sign up include a mobile tea bar, a handmade jewellery company and a number of people trying to fund computer games and films.
Kickstarter is different to traditional crowdfunding in that donors do not receive any equity in the company. They are usually pledging money for a small perk provided by the company (such as a branded T shirt) or simply to help bring a product to life which they are enthusiastic about.
If you’ve got a unique product or creative idea, crowdfunding projects such as Kickstarter are an interesting alternative to bank funding, which is increasingly hard to come by.
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