Knurled wrote:
ae86andkp61 wrote:
I could be wrong, but I thought those kind of sites were originally for small startups looking for investors. Say I want to invest a few grand, but not in the stock market, so I go online and find someone with a bright and profitable business needing to get off the ground, and in the end we all make money...am I totally wrong here?
I thought that was Kickstarter, where you put up some money and in return get something when the project comes to fruition, like a huge discount on the product when it comes out, or stuff like that, depending on the level you donated at.
A racer might better be served by Patreon, now that I think of it.
A couple of things here and it's easier to reply to both of you.
Kickstarter was initially established as a way to fund projects which someone believes there may be a market for but was unable to sell the idea to a larger company and cannot afford to bring the product to market in a traditional manner. The way it initially operated the product designer put up a video of a working prototype of an item or evidence that the project had been planned for, people viewed it and decided if they wanted to take a chance on it in return for the item or fund the project (Robocop statue anyone?). Overtime Kickstarter relaxed the rules a bit more so the prototype was no longer required. This lead to even more problems, as some designers with big dreams don't actually grasp the fact that even small scale production can be very difficult to manage, with rewards being distributed on time and Kickstarter changed their standards from presale to "funding an idea you believe in."
You're not actually buying stock in the companies or considered an investor because of investment and trading rules set by the SEC, which pissed off a lot of Oculus Rift customers, and you are no longer guaranteed a reward for the backing of a project as that would involve some legal problems for Kickstarter.
In the time between Kickstarter changing the rules sites like GoFundMe popped up for things that weren't eligible to fund on Kickstarter, like medical bills, and Indiegogo which never carried the prototype or presale requirements of Kickstarter.
Personally I've been really turned off to Kickstarter after several very high profile incidents leading to either the project failing outright or delays after delays and the final product ending up being some half cobbled together piece of E36 M3.
Mind you there's no refunds, no exchanges, no guarantee of a delivery date, and no warranty expressed on the items. Oh and you put up the money once the product hits enough pledges despite the possibility of not seeing the product for years with no recourse. I'm confused why media at large goes so nuts over these projects.
I've done 5 Kickstarter projects. None have been delivered on time.
+1 delivered the product as promised with no quality issues. (Finex) I actually have bought more products from their now established online store and recommend them to people because I am impressed with the products.
+1 I thought failed was delivered and then ultimately did fail after being sued into oblivion. (Blackprints)
+1 delivered the product eventually but did not fulfill the project scope. (Ouya)
+1 was delivered 2 years late and the product is half baked. (Lono)
+1 has not yet been delivered after already being a year late and looks like it is going to still be another 6 to 8 months. (Torment: Tides of Numenera) They at least have a decent project manager who provides regular updates and seem to have a good grasp on what it takes to develop high quality software so I'm not as bent there either.
So a 20% success rate and possibly 40% with $507 invested. Probably better than average for startups but not good enough to continue receiving my money. I'm fine with waiting to ensure the product comes to market and paying 10% to 15% more rather than losing the entire sum of money.
edit: damn that ended up being a long post.