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That is what my concern is. Is that good for things like doing a theater/play and for some legal issue does not work well for tech startups who envision it to b
by RuchitGarg 15y ago
That is what my concern is. Is that good for things like doing a theater/play and for some legal issue does not work well for tech startups who envision it to be a high growth company and have C/S corp incorporated.
I know there are certain limitation on how many private investors a C-corp can have. Would these people putting in money via kickstarter be called as investors?
- vitovito 15y agoLegally and technically, they're not investors. Kickstarter cuts you a check via Amazon. You don't have any contact with the donators except as mediated via Kickstarter. There's not even a requirement that you fulfill your promised obligations to your backers (although they'd probably never let you use them again). People are literally giving you money out of goodwill. That said, Kickstarter is a terrible platform if you don't already have a social network into which you can cast a wide enough net. It works best as the way you enable all the friends you already have and who are already willing to give you money, to do so. It doesn't have a huge pile of people who are just looking to spend money on hairbrained startups with no return. That active curation, cutting out projects like that, is why it's succeeding.
- RuchitGarg 15y agogreat advice vitovito
- DyumanBhatt 15y agoThis. Kickstarter is generating revenue in exchange for goods and services you're providing. It is not investment. I believe this is described in the Kickstarter FAQ. I however disagree that it isn't worth doing if you aren't already popular. You can use it as a place to become more popular than you already are, or use it as a means to show some traction even if you only raise $10,000.