While Kickstarter projects’ delivery rate seems unreliable, it’s significantly better than businesses that operate from venture funding. When investors take on new products or businesses, they are operating on the idea that maybe one in ten will be a big hit, a couple will be modest successes, and the rest will fail, Mollick tells Ars. In that light, the delivery rate of Kickstarter projects is significantly higher if any portion of the delayed projects end up delivering.
But unlike venture capitalists, backers on Kickstarter are not accustomed even to risk. They don’t (nor should they) see themselves as investors, betting on a spread of projects to soften their losses. For most backers, all that matters is whether the one project they believed in succeeds. This often leads to intense dissatisfaction. Disgruntled backers scrutinize any creator movements on social media that doesn’t have to do with advancing their promised product, and at worst come doxx or threaten project creators.
Not only is the rate of success for crowdfunding likely higher, but it may give realization opportunities to a much more diverse audience than traditional investment models. Statistics show again and again that most VC money goes overwhelmingly to men. Crowdfunding, by contrast, benefits female creators.
Women own 30 percent of the businesses in the United States, but only 13 percent of companies that receive VC funding include one female founder, according to Pitchbook. (As recently as 2010, that rate was just six percent.) According to joint research between Mollick and Jason Greenberg of New York University, women are still a minority of crowdfunding project creators, but they are 13 percent more likely than men to meet their goals on Kickstarter regardless of the amount sought or the quality of their pitches. Mollick and Greenberg found that this was due in part to “choice homophily.” Given the audience of gender-balanced backers, women are more likely to support other women on Kickstarter. This is in contrast to VC partners, which are overwhelmingly male (only six percent are women) and give money to mostly men. A 2014 report showed the split on Kickstarter was 55/45 in favor of men. On crowdfunding site Indiegogo, 47 percent of the campaigns are run by women, Indiegogo co-founder Danae Ringelmann told CNBC.
8-6-2021 (August 6, 2021) is the Snakiest day of the year and it’s also this year’s CircuitPython Day! The day highlights all things CircuitPython and Python on Hardware. See you there!
Stop breadboarding and soldering – start making immediately! Adafruit’s Circuit Playground is jam-packed with LEDs, sensors, buttons, alligator clip pads and more. Build projects with Circuit Playground in a few minutes with the drag-and-drop MakeCode programming site, learn computer science using the CS Discoveries class on code.org, jump into CircuitPython to learn Python and hardware together, TinyGO, or even use the Arduino IDE. Circuit Playground Express is the newest and best Circuit Playground board, with support for CircuitPython, MakeCode, and Arduino. It has a powerful processor, 10 NeoPixels, mini speaker, InfraRed receive and transmit, two buttons, a switch, 14 alligator clip pads, and lots of sensors: capacitive touch, IR proximity, temperature, light, motion and sound. A whole wide world of electronics and coding is waiting for you, and it fits in the palm of your hand.
Have an amazing project to share? The Electronics Show and Tell is every Wednesday at 7pm ET! To join, head over to YouTube and check out the show’s live chat – we’ll post the link there.
Join us every Wednesday night at 8pm ET for Ask an Engineer!
Maker Business — Over 500,000 manufacturing jobs are going unfilled
Wearables — Wings that shine
Electronics — Get the scoop on crystal capacitors
Python for Microcontrollers — Python on Microcontrollers Newsletter: WipperSnapper beta, 30k Discord Users and more! #Python #Adafruit #CircuitPython @micropython @ThePSF
Adafruit IoT Monthly — Smart Agriculture, an E-Ink Newspaper, and more!
Microsoft MakeCode — MakeCode for the micro:bit - 2021 Release!
EYE on NPI — Maxim’s Himalaya uSLIC Step-Down Power Module #EyeOnNPI @maximintegrated @digikey
New Products – Adafruit Industries – Makers, hackers, artists, designers and engineers! — New Prods 7/22/21 feat. Etched Glow-Through Keycap w/ Open Source Hardware Gear Logo – MX Switches! @adafruit #adafruit #newproducts
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