Quote:
Originally Posted by The Yen Man
And that is why I would never donate anything to a kickstarter project. You're basically donating money to someone who hopes to eventually turn that money into a profit for themselves. Why would I help fund someone else's investment?
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Yeah this whole thing really highlights flaws in the current kick starter model that I've been worried about for a little while. Just because some one has a great idea, that doesn't mean they'll make a good entrepreneur, and allowing them to generating 2-3-4 times the amount they were seeking really changes their business's trajectory in a very short amount of time.
It takes some one who's maybe ready to release a small production run and puts them in charge a large enterprise, without giving them the time to scale their business operations day to day. Or even the standard oversight required by VC investors.
So it's not shocking when some of these entrepreneurs make questionable/poor decisions when they find themselves sitting on a pile of money & have others banging on the doors to get a piece of it.
Don't get me wrong, I think the basic premise of crowdfunding small scale projects is great, I just think there is room for checks & balances, including a hard cap on how much a single campaign can exceed it's funding request by. Just because some one is ready to produce 100 widgets, doesn't mean they can instantly scale their business up to produce 100,000 of em.