Brenna Griffin, Karen Hanschke, Casey Mason,

Josh Miller, Charis Siau, & Gal Wolman

Overview
Intro/Background
General Environment
Porters Five Forces
Internal Analysis
Business & Corporate Level
Strategies
Conclusion & Questions

Mission/Team/History
Mission: To help bring creative
projects to life through
Crowdfunding.

Created by: Perry Chen, Yancey

Strickler & Charles Adler
Team: 137 People in Brooklyn, NY

History: Launched April 28th, 2009

Stats
$2,307,395,685 - Total dollars
pledged to Kickstarter projects

103,565 - Successfully funded

projects
10,652,449 - Total Backers
3,328,835 - Repeat Backers

29,355,636 - Total Pledges

Famous Projects

Question #1
What approach does Kickstarters
leadership appear to have regarding
innovation, and how should this be
managed?
Innovativeness: A willingness to introduce
novelty through experimentation and
creative processes aimed at developing
new products and services as well as
new processes.

Question #2
How might the external
environment affect
Kickstarters entrepreneurial
strategy?

Sociocultural
Began in 2003

Response to 2008 financial crisis

Increasing resentment toward banks
and large business

According to Gallup - 2015

67% favorable confidence in small
business

Political / Legal
JOBS Act - April 5, 2012
Amended Securities Act of 1933
Added exemption for
crowdfunding
Defined criteria for crowdfunding
Allowed for non-accredited
investors to participate

Demographic
60% male

Millennials 24 - 35 most likely

Making $100k+

Technological
2015 - 44% global
population is connected
to the internet

3.3 Billion users

Global
Asia crowdfunding +320% in
2014

700+ platforms as of 2012

1250+ platforms in 2015

~ 2000 platforms by 2016

Economic
2013 - $6.1 Billion globally

2015 - $34.4 Billion globally

Business & Entrepreneurship

2014 - $6.7 Billion

Question #2
How might the external
environment affect
Kickstarters entrepreneurial
strategy?
Kickstarter currently allows
projects that must have
an end date. They could
eventually allow
businesses to be started.

Porters Five-Forces

Industry Rivalry

Low switching costs

Fast industry growth rate
Low customer loyalty
Low entry/exit barriers

New Entrants

Low time & cost to enter

Medium enterprise - quickly learnt
High effort to build reputation
Low technology protection

Substitutes

Medium cost of change

Medium cross-product services
Specialized industry
Low technological difference
Limited substitutes

Supplier Power

Medium number of projects

Small size of projects
High project differentiation
High competition
Abundant substitute inputs

Buyer Power

High number of investors

Low investor buying value
Medium ability to substitute

Internal Analysis
Value
Performance
Strengths/Weaknesses

Resources
Intangible
Cognitive competencies
Culture

Capabilities

Internal Analysis
Competitive Advantage
Private Company
Social Responsibility
B Corporation

Neutralization of
competitive threats
Innovation

Internal Analysis
Opportunities
Market innovation for the future
Big technology firms
Municipal projects

Threats
Imitability
Potential loss of public trust
Poor publicity

Business Level Strategy

Overall Cost Leadership
-

Creators keep 90% of the investment

Anyone can back the project with small contribution- no cap

Differentiation
-

Backers dont profit financially

Creators keep ownership of their work
Not Equity based - JOBS Act does not apply

Focus
-

Individual projects

Public projects

Corporate Level Strategy

Games funded by Kickstarter

Related Diversification
Economies of Scope
-

Leveraging core competencies- project funding

in many industries

Market Power
-

Pooled negotiating power over Creators

Using Market power to protect backers

Conclusion
To help bring creative projects to
life
Leadership Approach
Competitive Advantages

Do you think the JOBS Act will

impact Kickstarter? How?

Is a 9% failure rate reasonable

for a community of people
trying to bring creative projects
to life?

Crowdfunding Campaign
OR
Pre-order Platform?

Is Kickstarters business model

sustainable? What would you
change?

Which Kickstarter project

category has received the
largest amount of pledged
funds asFashion
of December 2015?
Dance
Theater

Art

Design

Journalism

Games
Music
Crafts
Food
Technology
Photograph
Film &
y
Comics
Publishing Video

Which Kickstarter project

category has received the
largest amount of pledged
funds
December 2015?
Games as ofTechnology
Design
$433.2
Million

219,382 backers
$8,782,571
Jan 2015 Feb 2015

$386.98
Million

18,220 backers
$6,225,354
Mar 2014 Apr 2014

$376.52
Million

78,471 backers
$20,338,986
Feb 2015 Mar 2015

The highest number of

successfully funded projects by
a single creator is 94

The first 100 successfully

funded projects took 121 days
to reach. The last 100 took 3
days.

4 creators have won a

Grammy for their Kickstarter
project so far