I’m fascinated by Kickstarter. As stated on their website, “Kickstarter is a funding platform for creative projects.” It fills a great niche in the market for those seeking investment funds. On the low end, there are family and friends for small amounts. On the high end, there are venture capital funds. Angel investors are available for the space in the middle, but they can’t cover everything and they usually invest in high dollar amounts.
Kickstarter opens up a space for entrepreneurs and musicians to raise money for their projects. These projects are funding by many people giving small pledges that are only paid out if the entrepreneur raises the amount they sought to raise. If they are under that amount, no money is taken from those who pledged. If they are even or above the amount, all of that money is provided to the entrepreneur.
Now, a new iteration of the Kickstarter platform is yielding impressive results in Brazil. The platform is called Queremos and its purpose is to gauge the potential interest of a music band doing a concert in Brazil. Fans interested in attending the concert can pledge money in advance of the concert. This allows the concert promoters to determine if they can profitably bring a band into Brazil. Also, a foreign band is not going to want to travel all the way to Brazil if the audience will be small.
If the fans pledge money early, they benefit by having the first opportunity to choose their seats. If not enough people pledge, the fan keep their money, the concert promoters don’t risk money on marketing, and the band knows that the Brazilian market is not a good place for a concert. It’s a win-win for everyone and it mitigates risk on the production side.
Back in 2008, I was working in Peru when Collective Soul did a concert in Lima. I attended the concert and was amazed at what I saw. First of all, tickets were around US$50 in a country where most people attending the concert likely made around US$300 per month. They spent a sixth of their monthly salary on this concert and a lot of people did so. I heard estimates that 10,000+ people attended that concert. Everyone knew all of the words to all of the songs. It was an amazing experience.
Peru has a large part of its population that is in love with 80’s & 90’s rock and roll music from the USA. This was evident in the number of music stores (legal and not legal) in Lima with enormous rock and roll sections. As a result, Collective Soul was able to make it worth their while to travel as a band to Peru to do a concert.
Now, bands like Collective Soul could work with websites such as Queremos to gauge potential interest in a concert in other countries. How many people would come? What could they charge?
Queremos has now planned 36 concerts in Brazil. 35 of these bands were from outside of Brazil. This model will soon expand to other countries seeking to determine the financial viability of hosting a concert with everyone winning.