Last class, on Tuesday 15th of May, Prof. Dr. Ripsas spoke about the book „Business Model Generation” by Alex Osterwalder & Yves Pigneur. To me it was fascinating that they created and financed the book with the help of 470 authors, who wrote the texts and a lot of people, who financed it through small funds.
I thought it was a unique idea to raise money, but it isn’t:
If we look at Kickstarter – launched in April 2009 – „a funding platform where certain users run campaigns to fund creative projects” – we can see, that the business model is based on the same idea. Until now about $200 million are pledged to projects through Kickstarter, more than 1,8 million people have backed a project and more than 20,000 projects have been funded successfully.
How does this work?
On Kickstarter you can either be a “Project Creator” or a “Backer”.
As Project Creator you can upload your film, music, art or what ever and build your own project page, add videos and photos, submit them and offer a reward for the “Backers”. Kickstarter is guaranteeing you complete control and responsibility over your project.
As I said the Backer receive a reward for their fund. This can be a copy of the product, a limited edition, or a custom experience related to the project. The all-or-nothing funding system guarantees, that the credit cards of the backers are only charged if they reach the total funding volume within time.
People are checking out Kickstarter for new projects, tell their friends or the public about it, sharing the ideas and back projects, what supports them. Kickstarter helps people to finance their project and to build community around it.
But doesn’t it support imitation?