I don't think VCs should be worried about Kickstarter, at least in the near future. A VC can see the long-term value of a business idea, whereas Kickstarter sup

I don't think VCs should be worried about Kickstarter, at least in the near future. A VC can see the long-term value of a business idea, whereas Kickstarter supporters are just excited to get their hands on a shiny new toy. A bright entrepreneur would have to be crazy not to ask themselves if they can come up with an interesting deliverable (ie shiny new toy) before they give up stake in their company. I don't think it's a stretch to imagine an alternate history where Instagram raised serious money by offering supporters bonus filters or where Zuckerberg came up with incentives to raise his first few million in the early days. "We want to bring Facebook to all the major midwest universities, but we need $200,000 to build x. We'll open it up to schools X Y and Z if we get to the next level! And you'll get a badge on your profile!"