What’s the difference between Crowdfunder & Kickstarter? 9,500 Oculus Rift supporters just found out.
FOX asked our CEO to talk about Crowdfunder in the wake of the big backlash right now from people who donated to the $2.4M Oculus Rift campaign on Kickstarter. Those supporters didn’t get any benefit from Facebook’s recent acquisition of Oculus for $2 Billion.
Had the $2.4M that Oculus raised to launch the company been investment via Crowdfunder, then we estimate those backers would have gotten a 200x return on their investment. Because Oculus raised via Kickstarter, which doesn’t offer investment, the 9,500 donors to Oculus just received a pair of virtual reality goggles and other “rewards”. Here is a simple breakdown of the differences between rewards-based crowdfunding and equity-based crowdfunding.
- Kickstarter is a rewards-based crowdfunding platform
- Way to fund creative projects
- Creators keep 100% ownership of the work
- Backers receive rewards for their contributions
- Crowdfunder is an equity crowdfunding platform
- Way to fund startups, social enterprises and small businesses
- Entrepreneurs give up an equity stake in their company in exchange for investments
- Investors will have the opportunity to profit financially from their investment
Although Kickstarter and Crowdfunder are both crowdfunding platforms, they are quite different. Kickstarter is a way to fund ideas and creative projects by giving backers “rewards” while Crowdfunder allows people to invest in companies in exchange for equity. Learn the tricks on how to run a successful Crowdfunder campaign in order to get the most out of your fundraising efforts.