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How do folks see crowd-funding platforms like Kickstarter having a longer-term impact here? The promise of sustainable incubation without ceding control seems
by snydeq 14y ago
How do folks see crowd-funding platforms like Kickstarter having a longer-term impact here?
The promise of sustainable incubation without ceding control seems real using this model, but it might add overhead in areas where fledgling "companies" or projects might not have the time or bandwidth to steer.
Plus, I suppose, there's the question of the VC's rolodex vs. the "networking effect" of the crowd.
Arts organizations seem to rely on this model fairly regularly, but as much as one might want to be idealistic in suggesting that it is about "maintaining aesthetic independence" from monetary influences (big donors, government grants, "selling out" to the market), the drying up of funding in traditional areas is a prime motivator here as well.
- alexqgb 14y agoOne advantage of platforms like KS is that they allow originators to validate their concepts far earlier in the process, giving them more leverage in negotiating with financiers who can no longer demand exorbitant returns from highly speculative investments. Generally, the more risk you can remove before accepting outside capital, the less you'll have to pay for it.
- r00fus 14y agoKS makes a huge amount of sense in that it's both a publicity channel as well as a funding mechanism. If you can successfully handle a KS initiative to create a meaningful investment "round" and then deliver on some product (with adequate margins) or MVC design that the funders receive well, you will both have some working capital and social proof in one go. That said, it seems like a daunting challenge for technical-oriented folks - this is exactly where a paired business/technical co-founders model should be very useful.