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How to Use Kickstarter UK for Non-UK companies

How to Use Kickstarter UK for Non-UK companies

When I travel outside the UK for work, teaching or even pleasure I often get asked how to access Kickstarter by non-UK startups. If you are reading this post you probably know everything about Kickstarter, the biggest crowdfunding platform on the web reserved (unfortunately) for US, UK and Canadian companies.

So the first answer is “Yes, you can access the platform even if you are not in the US or in the UK”.  It’s more complex than being a local but it can be done if you know how to do it (and that’s a rule generally valid for startups even outside Kickstarter “Everything is possible if you know how to do it”).

About this guide (and me)

This guide could be useful for British startups as well, especially when I talk marketing. I spent more than 15 years working with startups first as a programmer then as a business lawyer (I know, I know nobody is perfect), then as co-founder and investor. I don’t suggest crowdfunding for every startup, but it’s a great place to start for many. I have followed a few fundings as a lawyer (usually confidential) and a few as a co-founder or adviser (I’ll use these for the guide).

This post provides no legal advice, and I don’t plan to sell legal advice later (those days are gone). The information is free. So don’t be greedy and when the time comes appoint an accountant and maybe a lawyer. I quote my friends from the British-Indian company Rajratna: “If you pay peanuts, you get monkeys”. So – again – don’t be ashamed to ask for help when you need.

In the next post I will share my experiences about how to succeed after you are already on Kickstarter (including the many mistakes we made and how to avoid them).

Why should a startup consider Kickstarter, especially a company with a non-UK founder?

Tricky question. In truth NOT all startups should consider Kickstarter. Before you apply to the platform you should ask yourself two questions:

1. First question: Can I pre-sell my product?

No matter what they say, Kickstarter is NOT a crowdfunding platform for companies.

In a typical funding a startup gives up some equity (a piece of the company) to investors in exchange for money – and hopefully for some help, connections,  prestige … you name it. That doesn’t happen on Kickstarter. In fact Kickstarter (i) doesn’t allow you to give away shares of the company, and (ii) it doesn’t allow you to offer services either. You can’t launch your new law firm on Kickstarter providing 3 months consultancy to the backers. You can’t offer membership,  haircuts, personal training … you get the point.

In order to be accepted on Kickstarter you need to offer a product (a piece of hardware, an album, a video game, etc.). And not even all products are accepted – as per the Kickstarter guidelines. Kickstarter is a marketplace to pre-sell your products before they exist, to customers who are open to paying in advance and ready to wait a long time for delivery. That’s the true nature of Kickstarter.

Kickstarter is a marketplace (a) to pre-sell your products before they exist, (b) to customers who are open to paying in advance and ready to wait a long time for delivery.

Usually you don’t have the product yet, and you don’t have enough funds to develop it (or to develop it fast enough). In short, you are going to use the platform to sell something that doesn’t exist – to people so crazy that they will pay you in advance (such as myself).

Thus the first question you should ask yourself is “Do I have a product that needs to be pre-sold?”. If not you should check other platforms or forget crowdfunding at all. Besides, it’s a good idea to check other crowdfunding platforms anyway.

2. Second question: Do I have the time to market my project?

There is nothing worse than a failed project on Kickstarter. This platform can promote your startup to millions of customers. On the other hand it will advertise your failure as well. You don’t want to meet a potential investor and explain why customers that are nice enough to pay more than $10 million for a paper watch (true story on Kickstarter) don’t want your product (and don’t try to lie to the investors – on the internet nothing is secret).

Registering with Kickstarter is a pain, and a double pain if you live outside the US/UK – although I hope that this guide will reduce your discomfort. But the real pain is marketing your campaign. A project is usually online for 1 month, plus you should probably start working on the promotion 2 months in advance, and aim to maximize the result a month later. Therefore you’re looking at a period of 4 months (half part time, half full time).

How much time should you allow for a project on Kickstarter?

  • Month 1-2 (part time): Pre-Kickstarter. Prepare the project, get accepted on Kickstarter, make a list of journalists and bloggers in your market. etc. More on the next posts.
  • Month 3 (full time): Kickstarter.
  • Month 4 (part time): Post-Kickstarter. Maximize your fame, set up a website to sell directly, understand who’s your typical backer and contact similar prospect customers, etc.

If you can’t be committed, forget it. Kickstarter is like a marriage without a prenup. It’s loving but if you are not committed you can lose everything. If you don’t know how to manage it properly ask for help before the wedding.

Find help for Kickstarter

There are very good consultants out there and you can also propose to an adviser to join your company and dedicate himself like crazy during the project. Look for advisers among those who already know you. For instance the startups I advise for a small equity often come from accelerators where I mentor, or they are introduced by people I respect.

No matter how few shares in your company your adviser has, he should be ready to over-work during the crowdfunding stage. A good result now will save him much work later.

3. Question to NOT ask: do I need the funds?

Even if you have enough funds to start a company by yourself, it could be a good idea to use Kickstarter anyway for three reasons.

i) The very nature of Kickstarter

You pre-sell something that you haven’t built yet, your customers pay you before you pay the providers. That’s a heavenly scenario for any company. Moreover, at the end of the campaign you know exactly how many customers you have got, and how many products you have to make.

ii) The very nature of the customers of Kickstarter

People open to pay for something that doesn’t exist are easily the best customers in the world. That’s also why “emotional” products work best. I will never buy a boring legal manual on Kickstarter, but I have backed comic books and video games in the sci-fi and gothic fantasy genres even if I don’t have time to read or play them, just because I love to see them succeed.

iii) The very nature of the promotion of Kickstarter

Kickstarter and other famous crowdfunding platforms like Indiegogo can promote your existence to millions of customers. Some of the companies I’ve worked with, such as Ego Smartmouse (Kickstarter) were featured on TechCrunch, Mashable, VentureBeat, CNet, Business Insider, ZDNet, Fast Company and too many others to mention, including TV channels (yes, the good old traditional TV), newspapers (the kind still made of paper …), and of course bloggers both big and small as well as online magazines.

How to use kickstarter uk - Ego Smart Mouse

These two startups get invites to show their products at events, fairs and meet-ups. One of them got investors, and the other startup got a proposal for a government contract thanks to the free promotion gained by the platform. Customers are still contacting them, even after the campaigns  have closed.

Take Away: Don’t forget to put a link to your ecommerce site on your project page after the crowdfunding has closed.

Which Kickstarter is better: US or UK?

If you decide to join Kickstarter, you still have to decide whether to join it in the USA or the UK. At the time I’m writing, these countries are the only two admitted together with Canada. Before going into details, you need to know a couple of things.

If I apply to Kickstarter in the UK will I lose US customers?

No, you will not lose your US customers if you apply in the UK. The contrary is also true, a US project will be promoted to the UK customers as well. Every customer can support any project based anywhere. Only the company should be based in one of the two countries. I am a UK resident at the moment and I often check US projects in the Kickstarter search engine, especially ones from New York City –  a place where we work from time to time, and that I always love to visit.

But choosing Kickstarter US or UK influences customers browsing

But – there is always a “but” – when I open Kickstarter on my browser, and before I use the search engine, I will see the projects in my area first. So a customer from NYC will see a mix of NYC and US projects, while I am in London and I see mostly UK projects first. This should not be under estimated. Many customers check the home page and – if they get interested in a project – they never reach the search engine.

How to pick the best Kickstarter

If you are in the US you will probably register in the US. If you are a UK resident you will probably register in the UK. But if you are a foreigner you can pick whichever you prefer. Because Kickstarter tends to show local projects first, choosing the right one is important. Usually US customers are (still) the best, but there is also more competition. So do your homework, and follow the instructions of the next paragraphs. It’s boring but if you master these rules, you will save time later, and make more money too.

Browse like a pro before you join Kickstarter

Before deciding which Kickstarter to join, you should spending a few hours browsing what projects are already online. Eventually you should use software to hide your IP so you can check the home page as if you were in the US, UK or in your own country (or any country where you think you can get better media coverage).

The main points to check are:

  1. Check what’s going on in your market. For instance if you plan to promote your music album, check every possible project in the same market. Start with the current projects, see who’s doing well and who’s doing poorly. Try to understand why. It’s also useful to check past winning projects. To take an example, if you are a band you can learn more from Amanda Palmer and how she raised $1.1 million on Kickstarter than from any marketing course (besides I have her album too!)
  2. Check what’s going on in your country. Check the home page of Kickstarter from your computer. Usually when the campaign is running, the media and bloggers  in your country will be more open to talking about you. Ego Smart Mouse gets coverage every time he plays the  “Brilliant young Italian  forced to emigrate to raise funds” card. (I should not say that Italian media loves to complain about their country … but actually I just did). Check other countries where you have contacts.
  3. Check what’s going on in other countries you can connect with. One of the startups I have invested in has two founders and one is Russian. Although they don’t live in Russia clearly they can contact the Russian media more easily than in other countries. Don’t ask your mother or young brother to do it. You need to see for yourself. Hide your IP and pretend to be Russian (or Spanish or wherever you have connections) and see if the home page is different. Note that you are not doing anything wrong. You are not hiding your identity to spam people or to post fake comments (a strategy that I personally dislike, although many use it). It’s just  marketing analysis.
  4. Check what’s going on in the US and UK. Again hide your IP (sorry for the recurrent link, I swear I don’t make money with affiliate links. When there is a commission it goes to the young startups). See what the competition is. US customers are usually more numerous and more open to joining innovative projects, but the competition can be tougher in the US.

Amanda Palmer raised $1,192,793 for their music album with a simple video and a brilliant campaign on Kickstarter.

Local business is a powerful business on Kickstarter

Most of the projects on Kickstarter are international by the very nature of the platform. Internet reaches everywhere, so if you want to produce a video game or a music album you should sell to customers everywhere in the world. Then check how  much competition there is to your project  in the UK and US, and consider this element  when deciding which Kickstarter you should apply to.

However some projects are local. Emilie Holmes of Good & Proper Tea raised enough money to buy a food truck and sell tea on the streets of London. No matter how many US customers saw her project it’s fairly improbable that a guy from Texas will send money to help a lady selling tea in London (I am a big fan by the way, on the other hand I live in London when I am not traveling).

How to use kickstarter uk - Emilie's Good & Proper Tea

Emilie is from the UK, but even if my friend Massimo from Milan, a great tea enthusiast, had thought about the same project, I would have suggested to him Kickstarter UK, not US. Massimo is a European citizen and doesn’t need an immigration visa to work in the UK, and he can fly to London from Milan for less than Euro 50 ($65 or £40) and promote his Kickstarter project at events, or meet  local journalists in person.

In short, don’t forget to check the nature of your project: local or global. Local business are not necessarily worse than global startup, and sometimes they can be better. After you launch your local business, you can always expand trough a franchising (and that’s exactly what Emilie is doing).

Your nationality could be more important than the two points above

So if you are in the US you will probably join Kickstarter US (but your browsing research could suggest otherwise, if there is no competition to your market in the UK). If you are from the UK you will probably join Kickstarter UK (but again, browse first).

What about all the other nations? As a rule of thumb I would suggest:

  • Europeans should join Kickstarter UK. You have no need for an immigration visa and you can reach your office in a couple of hours with a low cost flight.
  • Commonwealth countries and other countries with an easier UK immigration visa should join Kickstarter UK (but browse and browse and browse first).
  • All other countries should join Kickstarter US.

This rule is usually true and I have proved it many times but – here is another ‘but’ – part of your job is to prove me wrong. A real entrepreneur learns all the rules … to break them properly. When you have your own case study, drop me a message in the comments below or contact me directly. I love to hear about real cases (and you can get some free promotion too).

Joining Kickstarter US for a non-US company

For those who have decided to join Kickstarter US, this guide focus to the UK. However the marketing tips in the next chapter are for everyone. I will probably write a post for the US in the future, in the meantime “Godspeed my friend” and remember:

  1. If you have decided to register in US, investors tend to prefer companies from Delaware (just in case you plan to ask for extra funds later)
  2. A company from Delaware can set up a branch anywhere (so a Delaware company with an operative office in New York City or your own city is not uncommon)
  3. Opening a bank account for non-US citizens can be very painful, but there are ways to work around this – and I mean legal ways that are accepted by banks. Avoid any offer from the Internet that sounds too easy to be true, because that’s exactly what they are: fake. Kickstarter, Paypal and  credit cards can freeze your account or decide to refund the customers anytime (a.k.a. get the money back from you). And that’s very very VERY painful.

Back to Kickstarter UK

Update: In the meantime, we wrote a manual for our own startups. It’s going to be published for everybody at the beginning of October.

More information and a 50% discount voucher here: Kickstarter UK Handbook

Kickstarter_UK_Handbook_3D_300

If you plan to apply to Kickstarter, feel free to drop me an email about your project. And if you want to brainstorm in person, use the Clarity box on the right column.

Godspeed!

– Stefano

About the image. I took the photo near Waterloo Station, London. If you know the author of the graffiti, let me know his/her name. This photo is just a detail, the complete artwork was brilliant!

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Hi There. I'm
Stefano Tresca

I write about #startup #uk #crowdfunding #unconventional places

Programmer turned lawyer turned entrepreneur and investor. I had a chance to work/travel in 54 countries and I'm now based in London.

Let's Talk Business

Twice a week I help startups and crowdfunding at a discounted fee. All revenue goes to support young startups. Feel free to book now!

61 Comments

  1. Hei, I’m from Finland and would love to start my project in Kickstarter UK. I have been desperately waiting for your next chapter.
    Anyway, wish you a nice weekend and keep on great works!

    Best regards

    Nhan Nguyen

  2. Hey stefano sounds promising as I am looking to launch a Kickstart UK campaign but am based in Barcelona, so any help is gonna be grand. thanks! Can´t wait for yr next post

    • I’ll allow this little spam this time (smile)
      Kickstarter has still the bigger community, however it’s not always the best solution. Getfunded can be fine. Also, if you want to give out equity (shares) and not a product, have a look at seedrs.com (disclaimer: I’m an investor. But they are really good) or crowdbnk.com

  3. Hi, I’m from China and I have a product in disigning period. Is it possible that a Chinses startup company project on Kickstarter? And, thanks for your artcle.

    • Hi April,
      always a pleasure. I’ve spent quite some time working and travelling China. Unfortunately I’ve a negative answer to your question. A Chinese company can NOT apply to Kickstarter (and I don’t think they will for a very long time). Eventually you should find a friend in the UK and set up a joint venture.
      Ni hao ni

  4. Stefano, best wishes for 2014! After such a promising start of the article would LOVE to read the most essential part ;).

  5. Hi Stefano, will you intend to write the next chapter soon? I am from East Europe and I wondered what are the steps needed for starting a campaign from here. Thanks!

  6. Ciao Stefano,
    Io e un gruppo di amici vorremmo creare un progetto su kickstarter, ho letto in lungo e largo su forum vari su internet. Alla fine sembra proprio che c’è bisogno di un contatto in UK per cominciare.
    Ho visto che hai già aiutato altri a creare la loro campagna su kickstarter. Vorrei sapere se ci si può sentire e magari organizzarci per far partire il progetto.

    Grazie,
    Valerio.

    • [Another fellow Italian ...]
      Hi Valerio, if you don’t mind I’ll reply in English for everybody (you’ve read the English post after all).

      Yes, you need a team member in the UK (or US or Canada). Look for a REAL one. Kickstarter isn’t the only issue. You need to open a bank account first, and UK banks are very strict. They’ll ask for a proof of address (a bill, a bank statement, etc.).

    • Yes. I’m working on another Kickstarter right now. I’ve decided to write a weekly manual for them, and publish the same text to this blog. Going public is an old trick. It will challenge my ego so I HAVE to succeed (smile)

  7. Hello,
    I’m checking almost every day for your article about the UK Kickstarter for outside UK (Europe).
    Is it worth continue checking?
    And thanks for other articles,they are very useful and funny also.
    Best regards.
    David

  8. Ciao Stefano io sono uno sviluppatore di videogame per iOS, sono indeciso su quale piattaforma utilizzare per finanziarmi, se IndieGoGo oppure Kickstarter, il problema è che io sto in Italia e l’unica scelta disponibile per chi ha residenza italiana è la 1a.
    Vorrei capire, visto che io mi potrei spostare pure a Malta, che è molto più vicina e con un clima molto migliore di quello Britannico se è più facile aprire un account Kickstarter UK da lì.

    Oltretutto vorrei evitare l’inferno burocratico nazionale in tema di doppia o tripla tassazione, accetto suggerimenti.

    Ciao.

    • [A fellow Italian ... ]
      Hi Claudio, since you can read English, I’ll reply in that language for everybody (the Italian version of the blog is coming soon though).

      You are right. If you live in Italy, you need to use Indiegogo OR – if you want to use Kickstarter – you need to find a team mate in the UK. If you move to Malta – as you say – you still have to find someone in the UK to use Kickstarter. In fact, at the moment Kickstarter is open to US, Canada and UK only. They plan to expand to other countries, but I believe that Italy isn’t at the top of the list.
      Best
      – Stefano

      • Hi Stefano. When I discovered Kickstarter I went crazy and I immediately opened two companies, one in London and one in Houston (TX). I’m a creative entrepreneur and the crowd funding it is a wonderful opportunity if you have great ideas..
        Regarding that I’m wondering if you can help me suggesting some good contact to have a little press help before to launch my projects.
        The Company adresses are: creativityfarmuk.com and imaginationfarmusa.com
        thanks so much
        Max

  9. It seems that you are the only custodian of the secret of how to use kickstarter UK for non UK companies.
    An excessively good custodian if you ask to me! (:

  10. i thank you and all for all this great info you posted… But.. Why would you lie about posting it up on the week or on the weekend when you clearly seems to have no intention of doing so?

    Please, you have to realise that there are people like us who are waiting in false hope that the next chapter is up soon.

    Just tell us no, you are busy, and we will be fine; you already gave us so much info. Constantly lying saying it will be out THIS TIME? That is just a cruel and immoral thing to do. Please. We just want the truth.

    Thank you, regards.

      • Do i missed something? I’m not sure if I am stupid not finding the rest of the article or if I am victim of an elaborated scam in which the author of the article lure poor souls in seek of advice in order to decuplicate the traffic on this page :)
        My Kickstarter project consists in putting up an angry mob to attack people who are being too late on their promises. I need funding for pitchforks and torches. :D

  11. Is it possible for Individuals (non-companies) outside UK or US to still use kickstarter ?
    I do have a few friends who are in Germany and Canada as students so maybe if they can create the kickstarter for me ?

      • But that is the whole point of the this article isn’t it :/ To register a company as a non-UK citizen and propose a KS project as that company and a UK bank account

        • Yes Shu. You need both a UK company and a UK bank account. The company is easy; the account could be a pain but possible.

          • Thats what I am asking, suppose as a non-citizen I registered a company and got a bank acc (checkings) in UK or US and have a friend who is a citizen, so what would the process be ? The friend reprents the project as my partner/project manager and creates the kickstarter acc and just attaches my company bank acc ?

          • Hi Shu. You do NOT need a UK citizen. You need someone living in the UK (he can be a citizen or a foreigner). He will be a member of the team and he will apply to Kickstarter. Usually he’s a co-director of the company, and manage the bank account with you. If you are concerned about the money, you can protect yourself in many ways, for instance requiring a double signature to transfer money out.
            More info here: http://kickstarterukhandbook.com
            A bit of self promotion I know :)

    • Hi Andreas, Kickstarter allows only US, UK and Canada companies to use their platform. However they are expanding to more countries. For instance, they are supposed to accept Dutch companies as well.

  12. Hi again!!

    Great info!

    I am Italian, living in spain and I have a bank account in the UK! :)Do I have the hardest part already solved?? :)
    Or do I still need to have a partner in the UK? is it for a post address? or do i need to register a company in the UK?

    Thank You!!!!!!!!!!!!!!!!

  13. I visit each day a few web sites on this subject – I’m studying hard – I can probably share something with you soon

  14. Hello, I am trying to in finding issues to enhance my site!I assume its ok to use a few of your concepts!!

  15. Hi Stefano,
    I’m going to start my crowdfunding campaign on Indiegogo because I’m not US, UK or Netherland resident (I’m from Italy).
    What about copyrights and protection of the idea behind the project?
    I mean, I have a good idea and I put my project on a crowdfunding platform. Is there a sort of protection of my idea in order to avoid that someone else can copy it?

    • I am not really afraid about sharing ideas. Every investor will tell you that ideas are worthless. It’s all team and execution.

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