Kickstarter’s Perry Chen on 10 years and billions of dollars of crowdfunding
Channels with Peter Kafka
Deep Dive
Why did Perry Chen start Kickstarter?
Perry Chen wanted to create a platform that would help artists and creators raise funds for their projects without having to take on the financial risk themselves. He was inspired by his own experience trying to organize a concert in New Orleans and realizing the difficulty of securing funding.
What was the initial reaction to Kickstarter when it launched?
Initially, Kickstarter saw a steady, gradual growth rather than a rapid, exponential increase. The platform experienced a consistent 45-degree growth curve, which Chen considered a blessing as it allowed for more manageable scaling and cultural impact.
How has Kickstarter contributed to the economy beyond direct funding?
Kickstarter has generated over $4 billion for various projects, which has had a significant economic impact. A study by a UPenn researcher found that the money raised for projects on Kickstarter had a 2.5x trickle-down effect, creating jobs and supporting local economies.
Why did Kickstarter transition to a Public Benefit Corporation?
Kickstarter's transition to a Public Benefit Corporation was driven by a commitment to prioritize its mission of helping creative projects come to life over profit maximization. This structure allows the company to focus on its social impact and long-term sustainability.
How does Kickstarter handle large-scale projects from well-known creators like Spike Lee?
Kickstarter welcomes projects from well-known creators like Spike Lee because they bring attention and new backers to the platform. These high-profile projects can introduce new audiences to the platform, who then go on to support other independent creators, thereby expanding the overall impact.
What challenges did Perry Chen face when he returned to Kickstarter as CEO?
When Perry Chen returned to Kickstarter as CEO, he faced the challenge of ensuring the company's long-term sustainability and evolution without becoming dependent on any single person or group. He aimed to create a structure that would allow Kickstarter to continue focusing on its mission of supporting creative projects.
How does Kickstarter plan to raise additional capital in the future?
Kickstarter plans to raise additional capital by engaging with investors who are aligned with its mission and long-term goals. These investors would be willing to accept returns through dividends or future buyouts by similarly mission-aligned entities, rather than seeking immediate liquidity events like IPOs or sales.
What is Perry Chen's perspective on the role of advertising in media and culture?
Perry Chen views advertising as fundamentally driving the attention economy, which he believes undermines general sanity and consciousness. However, he acknowledges the practical realities of media economics and the need for balance in decision-making, especially for creators who may rely on sponsorships and commercials.
- Kickstarter has facilitated over $4 billion in funding for various projects.
- The platform has had a significant economic impact, creating jobs and organizations.
- Kickstarter's primary focus is on the qualitative impact of creative projects.
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