After helping entrepreneurs raise more than $8 billion in the 15 years since its founding, Kickstarter is expanding its strategy and making big changes.
The crowdfunding site, which allows entrepreneurs to fund projects big and small and receive early rewards in return, announced last week that it is introducing “Late Pledges,” a feature that will allow creators to continue raising funds even after their campaigns have officially ended.
Related: Kickstarter opens up platform to creators, makes big changes to model
“creator “We’ve wasted a lot of money over a long period of time,” Kickstarter CEO Everett Taylor said. entrepreneur“There may be buzz at the end of the campaign, or backers may find a cool project they want to support, but the funding period may have passed.”
Late donations allow creators to earn additional revenue and maximize their reach.
The introduction of Late Pledge is perhaps the most fundamental change to Kickstarter since its inception.
“We’re going to see more people raising 30, 40, 50 percent or even double their goal,” Taylor said.
Kickstarter CEO Everett Taylor. (Photo: Arturo Holmes/Getty Images)
Kickstarter also introduced an in-house performance marketing team to help creators expand their reach and a new mobile app experience. The platform takes a 5% commission on successfully funded projects, a percentage that has remained unchanged since 2009. Creators must pay an additional 3-5% for payment processing.
“One of the first things I wanted to do was listen to creators and be guided by them,” Taylor said, “so everything you see today is the result of their feedback and their voice.”
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Here, Taylor explains the decision-making behind the change, his approach to leading Kickstarter, and his advice to future CEOs.
Entrepreneur: Why did you make these changes after 15 years? Was it all based on feedback?
Taylor: The introduction of late pledges is perhaps the most fundamental change since Kickstarter began. We’re trying to focus on the things that will have the biggest immediate impact. Here’s what we’re rolling out now: [at the top of] People’s List. The #1 donation management and fulfillment tool for creators.
These are all things that exist on third-party platforms or that creators have been asking for for a long time. This was important to us because we knew it would have the biggest impact on the creator and supporter experience.
How have you approached leading Kickstarter since taking on the role of CEO in 2022?
The most important thing is that everything is possible. How can we innovate? How can we inspire ourselves? It can be a bit scary to step out of your comfort zone, but honestly, I’ve been guided by creators and communities. I can’t express how grateful I am for their passion and willingness to give feedback and express themselves.
I receive constant feedback from creators and am guided by the desire to make as much impact as possible.
With so many crowdfunding competitors out there, how do you keep entrepreneurs coming back to Kickstarter?
I think the biggest thing is giving them the tools and resources they need to be successful. One of the most important things to retain somebody, any customer, is to listen, to hear what they have to say, and to be invested in their success. It’s so gratifying to hear from creators that every time they relaunch their project, they raise more money. That’s amazing. And helping them understand that Kickstarter isn’t a place to launch and then forget about it.
Currently, creators of all sizes continue to release products. Recently, L’Oreal successfully released a new product on Kickstarter.
The other aspect is to continue to invest in and develop this audience and community. We have an amazing outreach team that specializes in all areas of entrepreneurship. If you’re looking to become a writer, we have a publishing rep. If you want to try film, we have a film rep. We also have a program called Forward Funds, which is a program where we can directly invest in and help fund some of the emerging entrepreneurs and people who are starting projects on our platform.
What advice would you give to budding leaders and entrepreneurs?
Embrace the challenges. Being a leader is not an easy job. There will never be a day or a time when 100% of people like you, support you, or believe in your vision. You have to keep working hard to do what’s best for your company, your community, and your customers.
It’s also important to balance everything else going on in your life with the demands and responsibilities of your business. If you don’t take care of yourself and are not at your best, it will affect the company. Some days are great, and some are tough. So keep things in perspective and focus on what’s important.
This interview has been edited and condensed for clarity.
