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This looks like a funded, experienced, hardware team with an already finished product. Are they only using Kickstarter for exposure? If they're looking for vali
by zan2434 12y ago
This looks like a funded, experienced, hardware team with an already finished product. Are they only using Kickstarter for exposure? If they're looking for validation/upfront manufacturing costs they should be doing pre-orders instead of "crowdfunding"
- SoftwareMaven 12y agoPlease define the difference in this context, especially looking at the funding rewards.
- Xylakant 12y agoPre-Order gives you a right to obtain the product or at least get some money back in case the company folds and there are assets left, usually even before the investors see any money. You're a customer. Kickstarter gives you "you're a backer" and in case the company folds you get nothing.
- jessaustin 12y agoThat might be an argument against Kickstarter in general, but it isn't a good criticism of any particular use of Kickstarter, especially of one like this which appears highly likely to succeed in producing the promised product.
- Xylakant 12y agoI think it's even a better criticism of this particular case: If this kickstarter really has such a low risk of failure, why don't the investors bear that risk and go for preorders?
- jessaustin 12y agoAs a consumer I would rather the investors expose me to a tiny risk than a huge risk. Would you really prefer the converse?
- SoftwareMaven 12y agoExcept in this case, if the company folds, there are likely to be no assets left, as the majority of the funds will be going to pay for manufacturing and the inventory needed to drive it. I would contend that your risk profile is almost, if not completely, identical, and it's the risk of doing early business with a very young company.