There is no reason that a Kickstarter project cannot also woo more traditional investors.
As crowdfunding sites like Kickstarter continue to be a rising trend in content production, there’s an important lesson that both successful and failed attempts can teach us all. That lesson is that the turnout for such a project tells the producer everything they need to know about the combination of the saleability of their project and their ability to properly market it. In fact, Mark Cuban recently came out in strong support of crowd funding, going so far as to suggest that every startup should be required to do a Kickstarter campaign.
“It’s a way for you create demand and sell the product without giving up any equity. That is a compliment to what an investor might do. In terms of PE (price to equity), there are strategic investors and then there’s just money. I’m not a big fan of money investors, which is what most angel investors turn out to be, because they just want their money back. I try to be very strategic, I try to add value, or I don’t make the investment.”
It’s a great way to look at things, but I wonder if we can take it a step further. There is no reason that a Kickstarter project cannot also woo more traditional investors. This is all the moreso if the Kickstarter campaign takes off like a rocket. Why wouldn’t an investor want to back a project that has shown it is both in-demand and managed by competent business folks? Serving as one example of the ability to do this, not to mention the leverage such an approach provides content creators, is Chris Roberts, developer of the Star Citizen game, which was wildly popular on Kickstarter.
“We’re still doing investment,” Roberts explained to RPS, “but I’m going to be a bit more picky in choosing it, and I’m getting to dictate the terms better. I’m saying, ‘You guys have to realize about making the game as good as possible. No forcing us to go public or to sell out.’”
Far from well-known conditions of corporate or investor interests forcing an early release of a game, or nixing important but difficult to create aspects of one (ahem, Mass Effect 3), this diversification of backing dollars protects the creator and his or her vision for their creation. There are still going to be stipulations under which an investor may hand over their cash, but the control over the creator is mitigated by the other sources of funds.
The Latest on: Crowd Funding
via Google News
The Latest on: Crowd Funding
- Lim Tean salutes donors to Terry Xu’s crowdfunding with Pavarotti’s Nessun Dormaon October 18, 2021 at 4:42 pm
One day, Singaporeans too will solve the riddle of how to make our democracy a better one." ― Lim Tean Singapore — At first glance, Mr Lim Team’s Oct 18 Facebook post could be mistaken for declaring ...
- SeedOn - World’s first blockchain-based equity crowdfunding platformon October 18, 2021 at 10:04 am
SeedOn solution to become the world’s first equity crowdfunding platform using blockchain technology - holds significant potential for changing the way we see crowdfunding today.Iasi, Romania, Oct. 18 ...
- MBA for Africa students are crowdfunding a music projecton October 18, 2021 at 3:10 am
The Music Business Academy for Africa is a joint venture between Music Ally and iManage Africa, working with talent manager and entrepreneur Godwin Tom to empower the next generation of executives ...
- Matheran residents use crowdfunding to repair civic hospitalon October 16, 2021 at 12:38 pm
A group of Matheran residents have started crowdfunding for repairing the civic-run Byramjee Jeejeebhoy hospital in the hill station. Adil Kekoo Gandhy, one of the residents who is raising funds with ...
- Check out this crowdfunding campaign to learn Godot Engine from GDQueston October 15, 2021 at 1:08 pm
GDQuest, a well-known name in the free and open source Godot Engine land has launched a new crowdfunding campaign aiming to get you to go from zero to hero with Godot programming.
via Bing News