I guess you could call Kickstarter a micro-venture-capital-crowdsource platform. It provides a way for artists, musicians, designers, filmmakers, and people with just plain good ideas to get funding for their (sometimes) off-the-wall projects without promising their first born to a venture capitalist.
Here's how it works. If you have an idea and you need funding to bring that idea to fruition, you start a project on kickstarter.com. You then set a financial goal. Here's how the site describes the funding process:
How does funding work?Every project has a funding goal (any dollar amount) and a time limit (from 1 - 90 days) set by the project creator. When the deadline is reached, there are either of two results:
1. Funding Successful: If a project has met or surpassed its funding goal, all backers' credit cards are instantly charged and funds go directly to the project creator. Project creators are then responsible for completing the project and delivering rewards as promised.
2. Funding Unsuccessful: If a project has NOT met its funding goal, all pledges are canceled. That's it.
Prospective funders/users can browse projects and make pledges instantly. Some projects promise a tangible item to the backers at the end of the project. It may be a T-shirt, a copy of a book, etc.
I think this site is pure genius. It allows creative people to pursue small projects that would never have been funded by larger patrons and it provides backers with a sense of contributing to something of value. These are the art patrons of the 21st century. The site also provides the intangible benefit of having a sense of community built around ideals. If you support something you like, you become a member of small community of like-minded people.
I love the idea...now, what to fund?