Question

1. What is the business model of Kickstarter? How has the founders and the leaders of the organization managed the organization so far?

2. What approach does Kickstarter’s leadership have regarding innovation, and how do they manage it?

Answer 1

1. The business model is to connect people who have ideas with people who will be willing to fund that idea (can be one or could be many). The Kickstarter management takes a 5% fees of the total amount as a cut for providing this service. The company has various categories where projects/ideas are listed.Its a global crowdfunding platform.The management has gone for diversification with the website launched in various countries and a project success rate of approximately 40%.

2. Innovation is spread all throughout the website and some of the most innovate products have come up due to the crowdfunding campaigns like the Pebble watch. Since some of the products listed might have a patent issue the website and the founders are very careful with fact checking regarding that. It is also important that the product has a novelty factor. They manage innovation by promoting products that have a greater novelty ratio by introducing a separate category for it on the site.