The Kickstarter Dream Is (Mostly) Over

It's been over for while

by Mike Marks

Crowdfunding was once a genuine shortcut for inventors. Today, for most inventors, it’s just another hard road - and usually not the best one.

In 2009, Kickstarter launched and changed the rules for inventors overnight. For the first time, a creator with a great idea - but no audience, no retailer relationships, no venture capital - could put a product in front of the world and get paid before manufacturing a single unit. The platform supplied the audience. You supplied the idea. It was genuinely exciting, and it genuinely worked.

That dynamic has largely faded.

(Note - I've done 9 crowdfunding campaigns. My first Kickstarter was in 2012 and was a phenomenal experience).

What Kickstarter was vs. what it is

When it was first launched, Kickstarter functioned as a discovery engine. Early adopters actively browsed the platform looking for interesting things to back. A compelling product page and a well-made video could generate real momentum from strangers who had never heard of you. The novelty of the platform was the marketing engine.

Today, Kickstarter behaves much more like a mature marketplace. It’s crowded, it’s competitive, and - critically - it rarely provides enough built-in demand to carry a project on its own. In most cases, successful campaigns arrive with an audience already in place and a marketing plan ready to execute.

“In most cases, you bring your own audience to Kickstarter - and then make it harder for them to buy.”

The friction problem

Every step between a customer’s interest and their purchase is a place you lose them. Compared to standard e-commerce, Kickstarter introduces additional steps and uncertainty.

Channel	What the buyer must do	Friction
Amazon / Etsy / Shopify	Click, pay, done — accounts often already exist	Low
Kickstarter	Create/log into account, pledge, wait for fulfillment	Higher

On top of that, Kickstarter takes 5% of funds raised, plus roughly 3–5% in payment processing fees. You’re paying a meaningful premium for a more complex buying experience - often with an audience you built yourself.

For many inventors, the math no longer works the way it once did.

You’re already 90% there

Here’s what many people miss about modern crowdfunding: to have a realistic shot at success with physical products you typically need a strong prototype, a clear cost structure, and manufacturing sources ready to roll.

At that stage, you can spend months building a pre-launch list, producing campaign assets, and preparing for a launch that may or may not gain traction. Or you can take a more direct path.

“But Kickstarter validates demand before I commit to manufacturing,” you might say. That’s true. But so does actually selling the product - with the added benefit that you’re generating revenue while you learn.

The better path: a real-world pilot

Instead of a full crowdfunding campaign, consider a small pilot run using short-run manufacturing or prototyping methods. Yes, your per-unit cost will be higher - but you gain something far more valuable: real market feedback.

Selling directly, even in small volumes, gives you:

• Real customers paying real prices

• Immediate feedback on messaging and positioning

• Insight into repeat purchases and referrals

• Flexibility to improve before scaling

If things go well, you build a foundation of proof - real sales, real reviews, real momentum - that strengthens conversations with investors, partners, or retailers.

If things don’t go well, you learn quickly and relatively cheaply.

“A few dozen real sales often teach you more than a campaign that never launches. Proof beats promises - for investors, for retailers, and for yourself.”

What if you’re earlier than that?

If you’re not yet at the prototype stage, there’s an even lower-cost way to reduce risk: a well-designed survey.

A survey won’t perfectly predict purchasing behavior. But it can tell you:

• Whether people recognize the problem

• Whether they’re interested in a solution

• Roughly what they might pay

That signal - gathered quickly and inexpensively - can save you from investing heavily in something the market doesn’t want.

Think of it as a staged approach:

Step 1: Survey
Low cost. Tests concept appeal before engineering.

Step 2: Pilot run
Higher cost per unit. Validates real demand with real buyers.

Step 3: Scale up
Mass production funded by revenue, investment, or both — backed by proof.

At each stage, you learn. At each stage, you decide whether to continue.

So when does crowdfunding still make sense?

Crowdfunding still works in certain situations:

• Products with strong visual or viral appeal

• Categories with active Kickstarter communities (e.g., gaming, cycling, design)

• Offerings where “backer” status or limited editions add real value

But these are the exceptions — and even in these cases, success typically depends on strong pre-launch marketing and audience development.

The honest bottom line

Kickstarter gave inventors something incredibly valuable: access to an audience they didn’t have. That advantage has diminished.

Today, crowdfunding is best viewed as one option among many - not a shortcut, but a tool. One that requires time, effort, and marketing investment, with no guarantee of success.

Before committing to a campaign, ask yourself:

Could I use this same time and money to test demand, run a pilot, and start selling?

In many cases, the answer is yes. And in many cases, that’s the smarter move.

Ready to take your invention further?

Invention City has helped inventors navigate from raw idea to market-ready product for over 25 years. We provide clear, honest guidance on what path makes the most sense for your specific situation — including whether crowdfunding is the right move.

Learn more about Invention City: https://inventioncity.com/abou...

By Mike Marks
Invention City Founder