Successful small businesses on sites like Kickstarter, Indiegogo tend to raise more money on subsequent projects
Here’s a secret for budding entrepreneurs using crowdfunding platforms to finance their projects: It pays to go back for seconds.
Consider the success rates on Kickstarter, the New York-based online platform where users make contributions on projects in exchange for rewards, like an early version of the product.
On average, people raising money on the site for projects are successful in meeting their goals 38% of the time, according to Kickstarter. But new data show that those with one successful project under their belts have nearly double the chances of success—73%—of reaching their next funding goal. And those with five projects have a 91% likelihood, according to the six-year-old site.
A similar trend is under way at Indiegogo, a San Francisco-based crowdfunding site created in 2008, said Chief Executive Slava Rubin.