Does Crowdfunding Still Work in 2025?
Crowdfunding platforms like Kickstarter and Indiegogo revolutionized product launches in the early 2010s, allowing creators to bypass traditional funding avenues and connect directly with their audience. But as we step into 2025, many entrepreneurs are asking: does crowdfunding still work? Has it become harder to secure funding, or are there new opportunities that make it just as viable today as it was 10 years ago?
Kickstarter was founded in 2009, while Indiegogo launched even earlier in 2008. Both platforms saw peak activity around 2015-2017, when crowdfunding was at its height in terms of backer engagement and total funds raised. During this period, high-profile projects gained widespread media attention, and organic social media reach was much stronger than today.
This post explores the pros and cons of using crowdfunding in 2025 compared to 2015 and whether it’s easier or harder to get funding now.
Pros of Crowdfunding in 2025
1. More Funding Opportunities
While Kickstarter and Indiegogo are still dominant players, newer platforms and niche crowdfunding sites have emerged, catering to specific industries like tech, gaming, and sustainable products. This diversification allows creators to target backers who are more likely to support their vision. Some notable platforms include Gamefound, Crowd Supply, and WeFunder.
2. Better Marketing & Analytics Tools
Crowdfunding in 2025 benefits from advanced AI-driven marketing tools that help campaign creators refine their messaging and target the right audience with precision. Social media and influencer marketing have also evolved, making it easier to reach potential backers through personalized campaigns.
3. Increased Trust & Consumer Confidence
Stricter policies on crowdfunding platforms have helped prevent scams and ensure project legitimacy. This has restored some faith in backers who were previously hesitant due to past fraudulent campaigns.
4. Alternative Funding Models
Subscription-based crowdfunding (similar to Patreon) and equity crowdfunding have gained traction, giving entrepreneurs more options beyond traditional reward-based models. Some platforms now offer hybrid models, allowing creators to combine product pre-orders with investor-backed funding.
Cons of Crowdfunding in 2025
1. Greater Competition
The number of campaigns has skyrocketed, making it harder to stand out. In 2015, Kickstarter hosted approximately 375,000 total projects, with around 130,000 successfully funded. By 2025, over 1.2 million projects have sought funding across various platforms, yet only about 250,000 have met their goals.
2. Higher Expectations from Backers
Backers today expect a polished, nearly market-ready product. Unlike in 2015, when early-stage prototypes could secure funding, campaigns now require high-quality videos, well-developed prototypes, and clear business plans to gain traction.
3. Rising Costs of Promotion
Advertising costs have soared, particularly on social media. In 2015, organic reach on platforms like Facebook and Twitter (now X) was much stronger. Today, paid ads are almost mandatory, adding an extra financial burden on campaign creators.
4. Platform Fees & Fulfillment Challenges
Kickstarter, Indiegogo, and other platforms have increased their fees over the years. In 2015, Kickstarter charged a 5% platform fee plus a 3-5% payment processing fee. By 2025, Kickstarter’s fees have risen to 6.5% with an additional 4-6% payment processing fee. Indiegogo now charges up to 7% in platform fees for certain campaigns, alongside a 5-7% processing fee.
Products Types Most Likely to Get Funded in 2025
Based on recent data, certain product categories perform better than others. Technology and gaming-related products continue to dominate crowdfunding, with smart gadgets, wearables, and tabletop games consistently attracting large funding amounts. Home and garden products have also seen increasing success, particularly eco-friendly and smart home solutions. In contrast, apparel projects tend to struggle unless they offer a highly innovative or sustainable angle. Art and music projects remain viable but often require strong community engagement and pre-built audiences to reach funding goals.
Number of Crowdfunding Backers
The overall number of backers on Kickstarter and Indiegogo has fluctuated over the years. In 2015, Kickstarter had approximately 13 million total backers, with around 3.3 million pledging in that year alone. By 2025, this number has increased to over 20 million total backers, but the annual number of unique pledgers has plateaued at around 3.5 million per year. Indiegogo has seen a smaller increase, with total users growing from approximately 9 million in 2015 to about 14 million in 2025.
Was It Easier to Get Crowdfunding in 2015 vs. 2025?
It depends. In 2015, fewer projects meant less competition, and organic social media marketing was far more effective. Backers were also more forgiving of delays and risks. However, fraud and failed campaigns made some skeptical of crowdfunding.
In 2025, crowdfunding has matured. While it’s harder to stand out, those with well-prepared campaigns can still succeed, thanks to better tools, alternative funding models, and a more knowledgeable audience. However, the percentage of successful campaigns has slightly declined—from 35% in 2015 to around 21% in 2025.
Does Crowdfunding Still Work in 2025 - Conclusion
Crowdfunding isn’t dead—it has simply evolved. It’s no longer just about having a cool idea; it’s about having the right strategy, marketing, and execution. Entrepreneurs who adapt to these changes and leverage new tools have a solid chance of success in 2025.
Klugonyx is here to offer tips to increase the chances of successful crowdfunding campaigns. Reach out HERE.
