by Daedalus » May 8th, 2014, 1:23 pm
For many kickstarters, isn't there financial risk assumed in the prototyping phase? Bringing about a printer to show on You Tube involves a fair chunk of change and a lot of effort. Without that initial investment from the creators, they won't attract enough pledgers.
Traditionally, entrepeneurs need to not only invest personal funds, but also secure soft money from friends and family. And usually they still need the investment banker. When the establishment money is cut out, the market benefits with a cheaper, albeit sometimes unreliable good that may not actually possess the apparent value. I don't have a problem with the crowdfunding market making that call instead of the suit. More ideas see the light of day. More little guys achieve thier dream. Fewer family members and friends are called on to share the risk.
Like many of us, I got me some Reaper Bones through two kickstarters. Did that established company require a kickstarter to succeed? No. But without crowdfunding, maybe a tenth of those figures would be available today at a much higher cost than I got them by pledging. That company really cashed in by circumventing their standard production plan with a couple of kickstarters. They also put in a helluva lot of effort to pull it off. The market benefits today with expanded product. Their business benefited and bought an injection molder to produce in-house. Aren't those good things?
.. UNCLE ZARGON
WANTS.. YOU