Navigating the Post-Pandemic Crowdfunding Landscape: When to Launch a Project on Kickstarter or Indiegogo

Now, more than ever, there is a growing desire for people to support each other. Whether you have a revolutionary product or a niche service impacted by the virus, it is wise to reschedule a campaign launch if your industry or niche has faced significant disruptions. Conversely, if your niche is holding up well, it’s advisable not to miss your opportunity. The duration of the post-pandemic recovery is uncertain, so staying on track with your crowdfunding efforts is crucial.

Current Trends and Projections

As I write this response in early April 2020, the data on crowdfunding platforms like Kickstarter suggest a mixed but steady landscape. Aggregate spending on Kickstarter has remained relatively stable despite an increase in pledge cancellations due to reduced incomes. At the same time, launch rates have slowed significantly, which is unusual. This suggests that the current dynamics could be a good window of opportunity for campaigners to launch if they are adequately prepared.

However, it's important to note that these trends are subject to change rapidly as the pandemic and its economic impact continue to evolve. Moreover, pre-pandemic economic indicators already point towards a potential recession. In February 2020, America faced periodic economic downturns and stock market tumbles. The onset of a bear market often precedes a recession, which can last for a year or two. During such periods, spending on non-essential or urgent items, like many crowdfunding products, may see a slight dip.

Government Stimulation and Public Sentiment

Simultaneously, the federal government initiated significant economic stimulus measures, allocating funds to American households. While the effects of these government checks are not yet fully understood, it could potentially influence public behavior towards crowdfunding campaigns. Some might use the stimulus as a cash buffer, while others might treat it as extra income, thereby increasing their spending on crowdfunding projects.

Uncertainty and Risk

Despite this positive outlook, there are always uncertainties and risks. For instance, a mutation of the virus into a worse variant could lead to hyperinflationary spirals, triggering civil unrest or even a global conflict that could devastate economies and crowdfunding platforms. While these scenarios are always possible, they are difficult to predict accurately.

Given these uncertainties, my best advice is to stay focused on your campaign and not overanalyze market timing. Many notable companies, including Kickstarter, Indiegogo, General Electric, and Microsoft, started during economic downturns. These downturns present unique opportunities for innovation and adaptability.

Conclusion and Final Thoughts

Successfully launching a crowdfunding campaign during a period of economic uncertainty requires both preparedness and flexibility. By staying informed about current trends and being ready to pivot if necessary, you can increase the chances of your campaign's success. Whether you're a first-time campaigner or a seasoned pro, the key is to adapt and persevere. Hence, if conditions allow, it may be a prudent decision to launch your campaign now rather than waiting for an imagined perfect moment that might never come.