With the recent hype on the failure of UK most funded Kickstarter project: Zano Drone and the recent coverage of the troubles by Singapore’s most successful Kickstarter project: Pirate 3D , the whole crowdfunding industry is cast in a negative light. The University of Pennsylvania recently published an independent study on the project’s failure rate of delivery of rewards on Kickstarter and the results are pretty interesting:
– Only 9% of the Kickstarter projects fail to deliver the rewards.
– Failure Rates are consistent across all 15 creative categories.
– Projects that raised less than $1k have the highest chance of failure to deliver. Projects that raised 10k-50k have the lowest failure rate.
– If a creator/company fails to deliver the rewards, most backers will not back any projects initiated by the same creator. Only 19% of backers of failed projects indicate that they would back another project by the same creator …