Re:Untold Story Behind Kickstarter Stats
by appsblogger on Monday July 16, 2012 @08:25AM
(#4250391)
Actually, the research data suggests that Kickstarter's efforts to make self-funding (making up the difference) difficult do seem to be working.
Quoting Prof. Mollick's paper: "...the percentage funded of failed projects remain very similar for smaller projects (mean .149, SD .18 for projects under $1,000) and relative larger ones (mean .101, SD .14 for projects over $1,000). We would expect that, if self-funding was the reason that few projects were moderate failures, that cheaper projects would be more easily self-funded, and therefore would have a lower, not higher, mean percentage funded for failed projects, since relatively larger funding gaps would still be cheap to self-fund."
since Kickstarter is all or nothing model, it's obvious if the project is only let's say 20% off its funding goal, family members or even founders themselves quickly fund it out of their own pockets to ensure 100% goal.