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OK, so given that Kickstarter isn't fully bootstrapped, if they say they never want to sell or exit, how do they not make all of their investors upset? Dividen

OK, so given that Kickstarter isn't fully bootstrapped, if they say they never want to sell or exit, how do they not make all of their investors upset? Dividends, buy backs? I like their conviction but it would seem like false advertising to the investors.

deleted 11y ago
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jonchang 11y ago
The article talks about how the founders told their investors they weren't looking at a huge exit, and that they were planning on paying dividends soon.
jonathanjaeger 11y ago
Chris Sacca talked about it in-depth on This Week in Startups a while back. From day one they told investors they planned to never sell. Chris Sacca didn't believe them but was in for the mission (and kept Kickstarter off his promotional material for a while because he wasn't sure about the return possibilities). Over time he believed the founders more and more that they wouldn't sell and they're in it for the long haul. Similar story with Fred Wilson and USV.
ritchiea 11y ago
I heard their founder/current CEO Yancey speak at a startup accelerator and speak extensively about the business. According to him they told their investors they have no intention to have a liquidity event. He suggested the investors were in interested in Kickstarter as marketing for their firm. It seems like they didn't take very much money. Seemingly a large enough sum to help grow the business but not large enough to shy investors away from a business that doesn't aspire to provide meaningful returns. Have you listened to the Startup podcast's coverage of Gimlet media? Seems like a similar situation, some unique businesses can secure prestige rounds providing they are not seeking huge amounts of capital.
- applejaxx 11y ago
  The article mentions Etsy as another B-Corp - but fails to mention that Etsy's founder went on record saying it would never IPO. (Aside: someone should really write a tell-all on the first 5 or so years of that company. There are some crazy stories.) I'm not discounting the motives behind anyone choosing to become a B-Corp, but it's important to note that it's not a legal distinction (like say becoming a 501c3) and you might go so far as to say it's closer to a marketing strategy than an operating strategy.
cssblondie 11y ago
this is literally in the story. Dividends coming within a year or two.

deleted 11y ago

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jonchang 11y ago

The article talks about how the founders told their investors they weren't looking at a huge exit, and that they were planning on paying dividends soon.

jonathanjaeger 11y ago

Chris Sacca talked about it in-depth on This Week in Startups a while back. From day one they told investors they planned to never sell. Chris Sacca didn't believe them but was in for the mission (and kept Kickstarter off his promotional material for a while because he wasn't sure about the return possibilities). Over time he believed the founders more and more that they wouldn't sell and they're in it for the long haul. Similar story with Fred Wilson and USV.

ritchiea 11y ago

I heard their founder/current CEO Yancey speak at a startup accelerator and speak extensively about the business. According to him they told their investors they have no intention to have a liquidity event. He suggested the investors were in interested in Kickstarter as marketing for their firm. It seems like they didn't take very much money. Seemingly a large enough sum to help grow the business but not large enough to shy investors away from a business that doesn't aspire to provide meaningful returns. Have you listened to the Startup podcast's coverage of Gimlet media? Seems like a similar situation, some unique businesses can secure prestige rounds providing they are not seeking huge amounts of capital.

applejaxx 11y ago
The article mentions Etsy as another B-Corp - but fails to mention that Etsy's founder went on record saying it would never IPO. (Aside: someone should really write a tell-all on the first 5 or so years of that company. There are some crazy stories.) I'm not discounting the motives behind anyone choosing to become a B-Corp, but it's important to note that it's not a legal distinction (like say becoming a 501c3) and you might go so far as to say it's closer to a marketing strategy than an operating strategy.

cssblondie 11y ago

this is literally in the story. Dividends coming within a year or two.