Kickstarter Releases Report on Failure Rate

December 10, 2015 - 8:06am
kickstarter logo Kickstarter is the crowd funding site that people either love or hate (personally I am a lover). One of the reasons for the distaste is that your pledge of hard earned money could just be taken from you with no reward sent which has caused some to stay away. The vast majority of people have accepted the risk and pledge anyway, so Kickstarter decided to check to see what kind of failure rate they actually had.  They polled over 500,000 backers and received a response rate of over 10% (not uncommon) regarding whether the project delivered on time and if they considered it a success or failure.  Some bullet points they bring up:
  • 9% of Kickstarter projects failed to deliver rewards
  • 8% of dollars pledged went to failed projects
  • 7% of backers failed to receive their chosen reward
  • 65% of backers agreed or strongly agreed with the statement that “the reward was delivered on time”
  • 17% of backers disagreed or strongly disagreed with the statement that “the reward was delivered on time”
  • Failure rates are relatively consistent, within a range, across categories
  • Projects that raise less than $1,000 fail the most often
One thing of note is that the Comics and Games categories had the lowest failure rate of only 3% of people all agreeing a project failed. So overall you have only a 9% chance of losing your money that you pledge, although you can expect delays since 35% of projects fail to deliver on time.  You can read the full article here on ICv2 and see all the graphs.