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It's a rubbish financing option. The financers on average don't seem very good at comparing their little upside to the risk they're taking.
by estomagordo 8y ago
It's a rubbish financing option. The financers on average don't seem very good at comparing their little upside to the risk they're taking.
- jacobush 8y agoThe ones I hear talking about their sponsoring, is that they know full well. I hear phrasing such as "shooting some money their way in case they succeed" and "it's an interesting project, let's hope for the best".
- estomagordo 8y agoIt's pretty damn stupid, know it or not.
- Mtinie 8y agoWhy? It’s effectively a patronage; a model which has been used to bankroll artists, pet projects, and a number of risky ideas throughout history.
- estomagordo 8y agoIt's effectively investment, but without any of the benefits.
- tudelo 8y agoThere is often very little risk... a small amount of disposable income to potentially get an interesting niche product. It is not meant to be a "smart" money decision. Not sure where you are getting that idea from...
- roywiggins 8y agoRight, but if I just wait a year (or however long) I can usually go buy that niche product without the risk. It's a pre-order.
- tudelo 8y agoIf you are talking about kickstarter and the like, no, there is a very real chance you will not be able to buy it if you don't fund it. There is also a very real chance that you won't get it even if you do fund it. And if it doesn't get funded in the first place, there is zero chance. Unless you were referring to some other sort of funding process. FWIW I do not participate in kickstarter, but that is because I like having things I spend money on. I know plenty of people who do. So, I think it's in general a good service.
- exolymph 8y agoExactly. I back crowdfunding product campaigns occasionally and I just assume that 10-20% of them won't work out even if they raise the money