According toStatistics on Kickstarter's partnership with Pennsylvania State UniversitySince March this year, we have analyzed about 500,000 online fundraising plans and found that about 9% of the fundraising plans could not be realized, and about 8% of the fundraising plans failed. At the same time, 7% of the participants said that they failed to obtain the fundraising projects they originally selected. However, as many as 65% of the fundraising plans were completed as scheduled and delivered smoothly.
From an overall perspective, one out of every ten crowdfunding projects is at risk of failure. Failure can occur due to failure to complete or deliver the product successfully, or when the product is successfully completed but falls significantly short of the initial crowdfunding ideal. However, from an overall analysis of the data, almost every type of crowdfunding project is at risk of failure. However, projects with fundraising amounts of less than US$1000 (approximately NT$30,000) typically have a relatively high probability of failure. This is followed by projects with fundraising amounts exceeding US$500,000 (approximately NT$15 million) and between US$1000 and US$10,000 (approximately NT$30,000 to NT$300,000). These projects also have a relatively high probability of failure, but the likelihood of failure is relatively lower than projects with fundraising amounts below US$1000.
Investors' attitudes towards products that successfully completed crowdfunding and those that failed to ship were largely similar. Many remained optimistic about products that failed to ship, with a staggering 73% stating that even if their current product failed to ship, they would still be willing to participate in crowdfunding for other products they were interested in. Meanwhile, approximately 15%-20% of planned products notify investors of unsuccessful shipments, while approximately 13% receive refunds or other equivalent compensation. Approximately 17% of investors expressed understanding of the factors that contributed to a product's failure.
Currently, many imaginative new product plans appear on crowdfunding websites such as Kickstarter, and they have successfully attracted the attention of many investors and obtained high amounts of funds. However, there are also many products whose product planners disappear after completing the fundraising. This has caused many investment risk concerns on crowdfunding websites, but it is still an opportunity platform for many new products to attract large amounts of funds.
From the perspective of product creation, any attempt and investment inherently carries certain risks. Therefore, it's crucial for startup planners to showcase their creative ideas, provide transparency into how fundraising will be conducted, maintain good communication channels, and readily respond to investor questions. If a fundraising product fails to successfully complete, they should immediately inform investors of the follow-up measures. From the investor's perspective, determining whether a product has a chance of success and can be successfully marketed can be a crucial issue. Just as investing in stocks doesn't guarantee a 100% chance of success, fundraising products are typically not already designed and ready for market, so success naturally carries the risk of failure.
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