Kickstarter Helps Connect Great Ideas with Crowdsourced Funding

by Lisa Hoover - Aug. 16, 2010Comments (1)

If you've got a great idea for an open source project percolating in the back of your mind but need a way to fund it, have a look at Kickstarter. It's a neat way to gather money for your plan and a low-risk way for others to invest in your dream.

The idea behind Kickstarter is simple. Send in your project proposal along with how much money you're trying to raise, hen set a deadline anywhere from one to 90 days away. If your proposal is accepted, it will appear on the Web site a few days later. Visitors to the site can then read up on your project and pledge any amount they wish, however they won't be required to send in any money unless you reach your funding goal. If your goal is reached, their credit card will be charged instantly. If it's not reached, all pledges are cancelled.

Kickstarter is a really great way to get a project off the ground that's stalled for lack of money, and terrific for gauging how popular your idea would be if it develops into useable software. For instance, if you're interested in creating the greatest open source iTunes killer on the planet but need $1,000 for hosting and other expenses, Kickstarter helps you put the word out about what you're trying to do. If lots of people respond by pledging money, you know you have a winning project on your hands. If interest is low, you won't have wasted your time developing an app no one wants.

Payment transactions are processed through Amazon Payments, which allows users to pledge money and safely provide banking information without releasing funds until the project's financial goal is met. Project creators only receive basic pledge information like amount donated and username, but never see the giver's personal financial data.

Take a look at Kickstarter's proposal guidelines, and read a blog post about where projects come from. If you think your Big Idea will tickle the Kickstarter team's fancy, send it in and get hooked up with donors who think your project is just as grand as you do.