What is all the FUD around Kickstarter here on HN? Kickstarter isn't investing. It is a form of pre-order donation, helping to bootstrap a viable market for a product the backer believes in. From the terms of use[1]:
"Kickstarter does not offer refunds. A Project Creator is not required to grant a Backer’s request for a refund unless the Project Creator is unable or unwilling to fulfill the reward.
Project Creators are required to fulfill all rewards of their successful fundraising campaigns or refund any Backer whose reward they do not or cannot fulfill.
Project Creators may cancel or refund a Backer’s pledge at any time and for any reason, and if they do so, are not required to fulfill the reward."
So, if you go on kickstarter and never have any intention to deliver rewards, you're breaking the TOS. How often have this actually happened? I'm sure some number of funded projects have probably disappeared -- but is it really a significant number considering the scale of Kickstarter?
I also see that roughly 45% of projects are funded -- so that's a pretty decent filter right there. For my own anecdotal experience with Kickstarter, I've yet to be "cheated" -- a couple of games I've bought/supported are still under development, but seem to be right on track (Elite, Start Citizen, Torment and Wasteland 2). I've backed some one-off projects, and helped kick-start three businesses: hexbright.com, Printrbot and peakdesignltd.com/capture/
Why should I be upset that my "reward" for supporting these are a subsidized great little product, and not half of a share of the company? I mean, the risk investing in something like any of these seem on average much larger than "most probably getting a cheap, unique product". Yes, the reward is less too -- but I don't understand why people seem to think this has something to do with investing?
Kickstarter provides actionable market research. That's it. It's a chance to trial selling your product, proving it's viability.
Sure, if I had a million dollars lying around, it might have been great if, say the founder of hexbright came to me and asked me for captial, so that I could be the one benefiting from his idea, not him. But for "real" me, that haven't got any substantial capital to invest, that outcome would've been worse. I think it's great that Kickstarter helps lower the need for up front investment for starting a business.
"Kickstarter does not offer refunds. A Project Creator is not required to grant a Backer’s request for a refund unless the Project Creator is unable or unwilling to fulfill the reward.
Project Creators are required to fulfill all rewards of their successful fundraising campaigns or refund any Backer whose reward they do not or cannot fulfill. Project Creators may cancel or refund a Backer’s pledge at any time and for any reason, and if they do so, are not required to fulfill the reward."
So, if you go on kickstarter and never have any intention to deliver rewards, you're breaking the TOS. How often have this actually happened? I'm sure some number of funded projects have probably disappeared -- but is it really a significant number considering the scale of Kickstarter?
I also see that roughly 45% of projects are funded -- so that's a pretty decent filter right there. For my own anecdotal experience with Kickstarter, I've yet to be "cheated" -- a couple of games I've bought/supported are still under development, but seem to be right on track (Elite, Start Citizen, Torment and Wasteland 2). I've backed some one-off projects, and helped kick-start three businesses: hexbright.com, Printrbot and peakdesignltd.com/capture/
Why should I be upset that my "reward" for supporting these are a subsidized great little product, and not half of a share of the company? I mean, the risk investing in something like any of these seem on average much larger than "most probably getting a cheap, unique product". Yes, the reward is less too -- but I don't understand why people seem to think this has something to do with investing?
Kickstarter provides actionable market research. That's it. It's a chance to trial selling your product, proving it's viability.
Sure, if I had a million dollars lying around, it might have been great if, say the founder of hexbright came to me and asked me for captial, so that I could be the one benefiting from his idea, not him. But for "real" me, that haven't got any substantial capital to invest, that outcome would've been worse. I think it's great that Kickstarter helps lower the need for up front investment for starting a business.
[1] https://www.kickstarter.com/terms-of-use?ref=footer