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This whole "controversy" over companies who do Kickstarters and later raise money (or sell their company) seems overblown. When you're backing a Kickstarter for

This whole "controversy" over companies who do Kickstarters and later raise money (or sell their company) seems overblown. When you're backing a Kickstarter for these types of companies you're often trying to get the product as a pre-order. So in addition to a potentially low margin business, these companies are now supposed to feel inclined to give you -- the customer -- equity in their company? As a backer, do you want the product or do you want the equity? They are two completely different ideas that seem to be conflated in the press. Perhaps all this controversy is fabricated by the press and not an actual problem. Kickstarter in particular is about rewards and/or patronage. There is an avenue for equity based crowdfunding elsewhere, the question is whether there is a big enough demand on the consumer side (with people who have little information about the company) and the business side (with founders who don't want to share equity). I'm not referencing AngelList, but rather companies who would run Kickstarter-like projects.

mehwoot 12y ago
I guess because kickstarter is a bit of both. Even when you are "purchasing" or pre-ordering a product, you don't have anywhere near a 100% chance of getting it delivered... you really are taking the risk of investing. Not sure what the solution really is though.
throwaway7548 12y ago
I dunno. Sometimes I'd be happy to drop 5-10k to a good project. Just to kickstart some good new tech or product. But not getting equity kinda sucks.
rudimental 12y ago
If everyone called it pre-ordering and not crowdfunding, I think there would be less "controversy"/ upset people. (I realize the crowd might be providing the funding to make whatever endeavor possible, but if it's ultimately pre-ordering...) the conceptual framework of crowdfunding means you're a part of something bigger. It taps into the language of start up funding. If a successful campaign results in the people putting on the project making tons of money, all you might get is a refund and disappointment. That result is more palatable if all you did was pre-order something. Edit: spelling

mehwoot 12y ago

I guess because kickstarter is a bit of both. Even when you are "purchasing" or pre-ordering a product, you don't have anywhere near a 100% chance of getting it delivered... you really are taking the risk of investing. Not sure what the solution really is though.

throwaway7548 12y ago

I dunno. Sometimes I'd be happy to drop 5-10k to a good project. Just to kickstart some good new tech or product. But not getting equity kinda sucks.

rudimental 12y ago

If everyone called it pre-ordering and not crowdfunding, I think there would be less "controversy"/ upset people. (I realize the crowd might be providing the funding to make whatever endeavor possible, but if it's ultimately pre-ordering...) the conceptual framework of crowdfunding means you're a part of something bigger. It taps into the language of start up funding. If a successful campaign results in the people putting on the project making tons of money, all you might get is a refund and disappointment. That result is more palatable if all you did was pre-order something. Edit: spelling