5 ms·
How did all those Kickstarter campaigns that raised over $1M work in light of the old limit?
by rkagerer 6y ago
How did all those Kickstarter campaigns that raised over $1M work in light of the old limit?
- deleted 6y ago[deleted]
- josh3736 6y agoKickstarter campaigns have never been subject to Regulation CF limits because they don't sell equity in a company. You aren't technically buying anything when you make a Kickstarter pledge. [1] You may or may not get a "reward" for backing depending on whether the project is a success. If you do receive your reward, that's the end of your relationship with the company; you have no ongoing financial interest in it (read: no upside). A Reg CF offering is an actual security; you're buying shares in a company, just like a VC does in early rounds. You're exposed to the same risks, but you do own a piece of the potential upside. [1]: https://www.kickstarter.com/terms-of-use#section4 https://www.kickstarter.com/terms-of-use#section4
- chews 6y agowhen raising money on Kickstarter, you're promising to sell the product, this is for equity in the company to non-professional investors. Think of it as a public offering of a friends and family round.