A study from the University of Pennsylvania last year found that nearly one in 10 backed Kickstarter projects fail to deliver their rewards. What’s more, eight percent of dollars pledged went to failed campaigns.
It’s no wonder, then, that crowdfunding platforms in general are often viewed in a negative connotation. What usually goes unseen, however, is the amount of good that these platforms deliver outside of campaigns.
A new study (also from the University of Pennsylvania) found that Kickstarter has played a role in the creation of 8,800 new companies and non-profits which have generated 29,600 full-time creative careers and 283,000 part-time gigs to help bring projects to life. What’s more, Kickstarter has helped generate more than $5.3 billion in direct economic impact for creators and their communities.
Digging deeper, the study found that for every 1,000 successful Kickstarter projects, 82 full-time jobs emerge. Among creators, 37 percent said their project helped them advance their careers while 19 percent found a new job opportunity as a result of their project.
It’s not just small startups, either, as Kickstarter served as the launching pad for major companies including Palmer Lucky’s Oculus VR (now owned by Facebook) and Eric Migicovsky’s Pebble Technology that’s largely credited with jumpstarting the modern smartwatch movement.
All things considered, the study notes that 82 percent of the organizations created through Kickstarter continue to operate to this day.
Image courtesy Gil C, Shutterstock