Something's On My Mind

Kinja'd!!! "Satoshi "Zipang" Katsura" (sundowne36)
12/10/2016 at 17:46 • Filed to: None

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How come places like Kickstarter never adopted an equity-style crowdfunding system? Y’know, like the “$x for x%” seen on shows like Dragons’ Den/Shark Tank, etc...?

In my mind, it might work just to stop rubbish ideas flooding the service - and both parties get to benefit if the idea’s an absolute success.


DISCUSSION (4)


Kinja'd!!! chaozbandit > Satoshi "Zipang" Katsura
12/10/2016 at 17:51

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Pledges to KS are more along the lines of charitable donations based on the promise to receive a physical item or service in return, though not always a guarantee. To give equity and make them shareholders just isn’t needed.

Angel investors like Dragons Den are on a whole different scale.


Kinja'd!!! BvdV - The Dutch Engineer > Satoshi "Zipang" Katsura
12/10/2016 at 18:04

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I’m not sure if that would work very well, since that would mean that you have no/little control over who has equity in your company. Whereas I can imagine that, especially in the start-up phase, you want to have control over who gets the equity, since you can choose ‘convenient’ partners that way.


Kinja'd!!! bhtooefr > Satoshi "Zipang" Katsura
12/10/2016 at 18:19

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Equity crowdfunding actually exists, mind you: https://en.wikipedia.org/wiki/Equity_crowdfunding#Equity_crowdfunding_platforms

The thing with Kickstarter, though, is that a lot of what it was really meant for is too small scale to really call for investment. And, a lot of it is along the lines of, “you give us money, we make a movie with it”, where you probably don’t want investors, you want contributors.


Kinja'd!!! Frenchlicker > Satoshi "Zipang" Katsura
12/10/2016 at 19:31

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Due to scale it would be a massive pain in the ass I would assume. It would be easier to go the Kiva route if you didn’t want to do gifts.