Kickstarter is the online site that allows broke entrepreneurs to raise venture capital from the public works.
The crowdfunding platform has been used successfully by many legitimate businesses to procure the necessary funds for a new restaurant, a food truck, or a line of products. Some companies use Kickstarter in addition to a bank loan that falls short of a project.
Recently, Zak the Baker raised $31,950 from 419 "backers" for his Wynwood cafe, telling Short Order "I was able to round up a loan, but turning a warehouse into a bakery is an incredibly expensive venture. Just the infrastructure alone took almost all of my money."
Though Kickstarter charges a five percent flat fee from a project's funding, the money raised through Kickstarter does not have to be paid back like a traditional bank loan, making the terms extremely attractive to an individual in pursuit of their dreams.
Not all Kickstarter campaigns are completely funded, but some gain traction and go viral -- like the one to make potato salad by another "Zach." This time it's not bread that's being funded, but a popular side dish.
Zack Danger Brown of Columbus, Ohio, had a simple goal. He wanted to make potato salad so he started a Kickstarter campaign to raise $10 to make potato salad, noting, "Basically I'm just making potato salad. I haven't decided what kind yet," noting that the potential investment risk, "might not be that good. It's my first potato salad."
Somehow, the quest to make potato salad went viral. The Kickstarter, which launched July 3, has raised $58,862, with nearly 5,000 people pledging money for this (ahem) vital cause.
Since then, Brown has updated his goals. He wants to obtain the services of a chef to get a better recipe and make his potato salad with mayonnaise from the natural foods section of the market. Brown also wants to rent out a party hall and "invite the whole internet to the potato salad party" -- if, of course, you've pledged a minimum $10 to the campaign and can make it to Ohio.
We're thinking that with all the money Brown's raised, he should move to Miami and set up a potato salad shop in Wynwood -- might even be a good side dish to Zak the Baker's sandwiches.
If you want to get in on the potato salad madness, the Kickstarter is still raising funds until August 4.