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Does Kickstarter allow you to raise money to build a product, where in exchange for their support, you offer to give your backers a percentage of future profits
by blackrock 7y ago
Does Kickstarter allow you to raise money to build a product, where in exchange for their support, you offer to give your backers a percentage of future profits? And with an agreed upon profit sharing restriction.
Or is something like this in contradiction with SEC investing rules.
The interesting thing is if you build something that brings in $1 billion in profits, and you continue to pay that small percentage out to your initial Kickstarter supporters.
- bdcravens 7y agoNo. > Projects can't offer equity. > Investment is not permitted on Kickstarter. Projects can't offer incentives like equity, revenue sharing, or investment opportunities. https://www.kickstarter.com/rules https://www.kickstarter.com/rules
- blackrock 7y agoI always found that confounding. You put up a half-baked idea, and random people will throw a few hundred dollars at you to help you achieve it. And all they get is a thanks, and perhaps a mention, and possibly a tshirt. And sometimes the person never had any intention of building the product to begin with. It was an elaborate scam.
- bdcravens 7y agoKickstarter knows many projects fail, which is why they want to ensure there are no guarantees or legal entanglements with the types of projects there. As a Kickstarter purchaser, you have to know what you're getting into. I actually was burned by one project (the HydraDock) but I honestly wasn't that angry; I knew the subtle difference between sponsoring a project and a pre-order.
- officeace 7y agoIs there a platform that does? I've (not a developer) looked at IndieGoGo for help funding my software development since I've had trouble putting together an equity team to help get it from concept to at least prototype.