L.A. becomes major center for Kickstarter funding

kickstarter2.jpg The online fundraising site has helped finance 122 projects in L.A., topped only by NY with 144 (SF is third, with a curiously low 67 projects). Film and video is the most popular category among creators who need money, and it's second-most popular among donors (games is tops). All told, Kickstarter projects generated $274 million in pledges from 2.2 million people, and almost half of those projects received the necessary funding. (check out Fast Company's nifty infographic). The site, which is basically an expansion of the old friends-and-family source of funding, gained further legitimacy earlier this month when the producers of an upcoming movie based on the TV series "Veronica Mars" received more than $2 million in pledges over a 12-hour stretch. But video game development seems to be an especially popular area for funding. From the Economist:

One reason that games get financed is that gamers are tech-savvy. With an average age in America of 37, they also have plenty of disposable income. They expect no return on their money, save a free or cut-price copy of the game itself. There are structural reasons within the games industry for Kickstarter's popularity, too. As development budgets for games have risen, says Aubrey Hesselgren, a games-industry programmer, big publishers such as Electronic Arts and Activision have become risk-averse. Like Hollywood studios before them, they have taken the safe option of churning out endless sequels to already-popular titles in big-selling genres, such as military-themed shooting games. That leaves a long tail of disgruntled fans who can't find new games they enjoy. The three biggest Kickstarter games are all from underserved genres.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Hollywood stories:
Obama meets with victims of LAX shooting*
THR's Stephen Galloway wins entertainment journalist of the year
Finke, Waxman, Penske, Min: Battle of the Hollywood trades
Photos: AARP Films for Grownups Film Festival
Best thing about next year's Oscars night probably just happened

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook