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Discussion in 'General Investing Discussion' started by Tropo, 27th Mar, 2014.

  1. Tropo

    Tropo Well-Known Member

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    Attention Suckers: Please Send Us Your Money - Bloomberg View

    "Those almost 10,000 early investors on Kickstarter participated in one of history's most lucrative funding rounds from the perspective of the people receiving the funding: a $2.4 million early-stage investment in what would become a $2 billion business in a year and a half, in return for 0.0% equity."

    -- WSJ's Corporate Intelligence on Oculus's crowdsourced 2012 fund-raiser.​
     
    Last edited by a moderator: 25th Apr, 2017
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    When you write it like that, crowd-sourcing sounds kind of insidious ... but the reality is that most startups who seek funding, first get capital from family/friends - crowdfunding is merely spreading that initial capital raising out across a lot of people, each taking a small risk in return for some reward once the product is released.

    While there will always be examples of people abusing the crowdfunding system, I think it's a valuable and useful system for testing the market demand for what you're building - and for getting early feedback which is critical to success.

    Perhaps there needs to be more legislation or checks/balances on this to prevent people getting scammed, but that doesn't make the entire system worthless.