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I just cannot help but notice how much the perception of what Kickstarter is has changed from its initial days. I learned about Kickstarter at the time the Diaspora project was there collecting money. It was clear that people are not "buying" but "investing". They were not "consumers", they were "investors". Diaspora wasn't a "product" on "pre-order" but a "project" which was "under development". How the intent and purpose of the site changed in the minds of both "backers" and project makers is just amazing. Its like the identity of what Kickstarter started out to be has been lost somewhere.

Kickstarter was supposed to replace angle investors and VC. They were supposed to help the little guy start up without all the control of the big guy who had money. The idea, as explained to me on this very forum, was that this was crowd sourced investment. The users here went on to say how this will change the startup culture and help people start more bootstrapped startups without any strings attached. The "rewards" were never a guaranteed thing. They were sort of a thank you and giving out rewards were supposed to be a way to show off that they actually succeeded. Now it seems the whole thing has shifted to a marketplace of sorts. It seems like people are using it as an alternative to ebay or amazone, just that they can have higher flexibility and more contact to their "consumers". The inherent risk of "investing" has been lost and given way to the guarantee of "buying" a product.



Kickstarter's guidelines specifically say

> Offering financial incentives, such as ownership, financial returns (for example, a share of profits), or repayment (loans) is prohibited.

If they ever claimed pledges were "investments", that was dishonest and I think the SEC could actually prosecute them for it.


I think I made the wrong choice of words there. I am really truly sorry. I think donations is much more appropriate. I don't know, maybe someone will understand. I just wanted to say that kickstarter didn't imply any ownership in anyway. Ever.




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