Off the top of my head I can think of 5 friends and acquaintances that have used Kickstarter to start and fund and promote a business. No, 7 friends. One friend just opened a local-only grocer in Pilsen (in Chicago) using the site; another launched her own record label so that she could put out her own CDs; another funded the production of a new planter she came up with that waters your plants for you, but still looks decorative and clean. (I could go on..)
Kickstarter does what people have done since the beginning: it brings together a community to support the success of one of its members. We're just better at doing this through technology now, as opposed to standing on a crate in town square, selling the ideas to passersby. The contributors benefit from donating by receiving perks, like early delivery of the product, or free VIP tickets to the location opening (as with the grocery store or a restaurant or something).
The entrepreneurs make thorough (and really cool) videos about themselves and their inspiration, goals, and products or services. Contributors are kept up to speed with where their money is going, and are able to contact and be contacted by the business owner. Often the videos, almost like a cross between a movie trailer and instructional YouTube video, can be shared on social media platforms so that the word can spread faster; and that it does.
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