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How will the Doom Kickstarter fraud scandal affect future Kickstarters?
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<blockquote data-quote="billd91" data-source="post: 6164176" data-attributes="member: 3400"><p>The way I see it, Kickstarter fills two roles that I see as valuable. It allows someone without corporation-style budgets but with a solid idea and plan, like Rich Burlew reprinting some Order of the Stick books, the scratch necessary to achieve relatively simple goals (pay for a number of big print runs). That's the order fulfillment side of Kickstarter and, for small companies and independents, I think it's totally legit.</p><p></p><p>But it's also useful for generating venture capital, which has inherent risks of loss, for R&D projects that may not pan out. Being crowd-funding (volume over size), no single person or fund source has to sustain a major hit. So, giving a guy in his garage money if he has a good idea? <strong>YES</strong>, but only to the point where I'm comfortable losing the money without receiving a return. If that guy needs to be able to pay everyone back because a project didn't work out, then he's really got to either work with money he already has, saving that investment money in case he has to issue a refund, or he's got to go into debt. And neither of those situations is ideal (and will probably cause people needing the venture capital idea to seek funding elsewhere, leaving Kickstarter to just be an order fulfillment system).</p></blockquote><p></p>
[QUOTE="billd91, post: 6164176, member: 3400"] The way I see it, Kickstarter fills two roles that I see as valuable. It allows someone without corporation-style budgets but with a solid idea and plan, like Rich Burlew reprinting some Order of the Stick books, the scratch necessary to achieve relatively simple goals (pay for a number of big print runs). That's the order fulfillment side of Kickstarter and, for small companies and independents, I think it's totally legit. But it's also useful for generating venture capital, which has inherent risks of loss, for R&D projects that may not pan out. Being crowd-funding (volume over size), no single person or fund source has to sustain a major hit. So, giving a guy in his garage money if he has a good idea? [b]YES[/b], but only to the point where I'm comfortable losing the money without receiving a return. If that guy needs to be able to pay everyone back because a project didn't work out, then he's really got to either work with money he already has, saving that investment money in case he has to issue a refund, or he's got to go into debt. And neither of those situations is ideal (and will probably cause people needing the venture capital idea to seek funding elsewhere, leaving Kickstarter to just be an order fulfillment system). [/QUOTE]
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