Kickstarter is expanding its strategy and making big changes after helping entrepreneurs raise greater than $8 billion in 15 years of operation.
The crowdfunding site, which allows entrepreneurs to fund projects large and small in exchange for early access to rewards, announced last week that it should introduce Late Pledges, a feature that permits creators to get funding – even after the campaign has officially ended.
“Creators there has been so much money on the table for so long,” says Everette Taylor, Kickstarter CEO Entrepreneur. “They may gain traction towards the end of the campaign, or sponsors discover a cool project and want to support it, but the funding period has passed.”
Late commitments mean creators can earn additional revenue and maximize their reach.
The introduction of Late Pledges is probably the biggest change to Kickstarter since its inception.
“You’ll see a lot more people raise 30, 40, 50% of their goal, even double their goal,” Taylor said.
Kickstarter CEO Everette Taylor. (Photo: Arturo Holmes/Getty Images)
Kickstarter also established an internal performance marketing team to assist creators expand their reach and deliver recent mobile app experiences. Platform lasts 5% reduction in the variety of successfully financed projects; this percentage has not modified since 2009. Creators have to pay an additional 3-5% for payment processing.
“One of the first things I wanted to do was just listen to our creators and let them guide us,” Taylor said. “So everything you see now comes from the opinions and voices of our creators.”
Here, Taylor explains the decision-making process behind the changes, his approach to running a Kickstarter, and his advice for future CEOs.
Entrepreneur: Why make such changes after 15 years? Was all of it based on feedback?
Taylor: The introduction of Late Pledges is probably the biggest change to Kickstarter since its inception. We attempt to focus on the things that can have the biggest immediate impact. We really feel like that is what we’re introducing [at the top of] lists of individuals. Donation management and success tools for creators are #1.
These are all things that either exist on third-party platforms or things that our creators have been asking for for a very long time. So this was necessary to us because we knew it will have the biggest impact on the creator and supporter experience.
How did you connect with the leading Kickstarter after taking on as CEO in 2022?
The most significant thing is that nothing falls off the table. How can we innovate? How can we force ourselves? It’s a little uncomfortable to step out of your comfort zone, but truthfully, I used to be guided by our creators and our community. I cannot express enough how grateful I’m for their passion and willingness to supply feedback and express themselves.
I receive constant feedback from creators and am driven by a sense of wanting to make as much of an impact as possible.
With so many crowdfunding competitors, how do you encourage entrepreneurs to return to Kickstarter?
I think the most significant thing is to provide them the tools and resources they must be successful. One of the most significant things to retain anyone, any customer, is to take heed to what they say and make sure you are invested in their success. I like hearing from creators who say that with every project I come back to, I raise more cash. It’s beautiful, is not it? And help them see that Kickstarter is not a place they launch once and that is it.
Today, we have makers of all sizes always bringing recent products to market. We just successfully launched a recent L’Oreal product on Kickstarter.
The other side continues to take a position and grow in this audience and community. We have an amazing support team covering every entrepreneurial space. If you wish to be an creator, we have someone to publish. If you are trying out a movie, we have someone for the movie. We also have a program titled Term funds which invests directly in emerging entrepreneurs and people on the platform who are starting projects, where we could also help them by providing some of the funding.
What advice would you give to aspiring leaders or entrepreneurs?
Embrace the hard things. Being a leader is not an easy task. There won’t ever be a day or a day where 100% of individuals will such as you, support you or consider in your vision. You must proceed to pursue your purpose and do what is best for your online business, community and customers.
It’s also necessary to give you the option to balance all the things life throws at you while balancing the demands and responsibilities of the business. If you do not maintain yourself and aren’t at your best, it should impact your online business. There shall be great days, but there will even be difficult days. So keep things in perspective and focus on the things that are necessary.
This interview has been edited and condensed for clarity.