A successful Kickstarter project provides necessary funding to produce a product, allows product makers to connect with customers interested in their future offerings, and gives makers immediate feedback on their project. The crowdfunding campaign can also provide valuable market and consumer research.
A funded Kickstarter project allows small startups to build or create something that is too costly to bring to market without outside financing. By using Kickstarter, makers can retain the full rights to their ideas and not worry about paying interest on a loan. Instead, they're only responsible for delivering the project they promised.
Some established companies launch Kickstarter campaigns for only the intangible benefits. Larger companies that want to determine the interest in a new product may start a Kickstarter campaign to find out if they should invest in developing the product.
Other companies use Kickstarter as a way to convince their audience to participate in the development process. Game development companies may present a concept for a new videogame on Kickstarter and ask people to fund it if they like the idea. If enough people fund the project, the company can solicit their input to find out what features, storylines and characters they want. Other companies can use the feedback they receive on their initial product to tweak the design before it goes into production.