Difference between raising money on Kickstarter vs. AngelList?


What are the differences and pros / cons for each platform?

Why should someone go with a Kickstarter campaign vs seeking out angel investors on platforms like AngelList?

Angellist Crowdfunding Kickstarter Angel Investors

asked Mar 25 '14 at 14:29
Lisa Yamaguchi
20 points

2 Answers


Not all products are suitable for Kickstarter campaigns. Early successful projects on Kickstarter were by individuals - writers, musicians, and other artists. Majority of campaigns have fairly small target budgets to release a first iteration of an inexpensive product ($10-50) and pre-sell it directly to consumers. Kickstarter is a great validation platform for both individuals and startups, but requires a good deal of effort to setup - you will need more than just a vision and/or description for a product - people expect design mockups, sketches, and most importantly a timeline for a release of the product, typically 3-6 months. Your early customers don't care about financials or competitors, just about the product. Getting funded through Kickstarter doesn't change your ownership.

AngelList is for companies, not individuals, regardless of type (B2B or B2C) or stage. Regardless of the type of investor you work with, you give up ownership share for the money you get. You could have a much longer timeline before you have to release your MVP (if you raise seed money) or you could borrow for pivots and/or to invest into growth.

TLDR: If you need modest funds ($5,000-$20,000) to deliver your first B2C product, but don't want to give up equity, or think it would be easier to sell the product idea to your prospective customers instead of investors, then Kickstarter campaign might be for you.

answered Mar 27 '14 at 14:09
2,835 points


They're both very different.

Kickstarter - you pre-sell your product.
AngelList - you give equity to investors who own the business with you.

They're both very hard to raise money on.

Most Kickstarter campaigns don't reach the minimum needed and therefore, are closed without any funding.

Most startups on AngelList don't have the traction that attracts angel investors. The ones that do, have an easier time raising money and at better valuations.

answered Mar 27 '14 at 13:49
Jon Sturgill
32 points

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Angellist Crowdfunding Kickstarter Angel Investors