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View Full Version : Will Kickstarter and Other Platforms Move to Equity?



Bobby76
07-15-2012, 12:30 PM
Just wondering what your thoughts are? Will Kickstarter, Indiegogo, and the other big crowdfunding platforms move into equity funding once the SEC approves everything? I would think they will likely go about things by allowing both equity and non-equity funding. Eventually though the equity projects will be the primary course of generating cash for most projects. Why would you donate when you can own a part of the company, and help them out as well?

FredTumac
07-16-2012, 09:26 AM
In my opinion we will see Kickstarter launch an Equity backed platform into their existing platform as soon as the SEC finalizes things. I'm sure they will keep the original donation platform as well, at least from the start. Another idea is a hybrid of sorts. Perhaps equity and gifts. For instance Ouya could offer 1 share and a system for $x, etc. In the end though Equity will win out. As you said, why would anyone not want shares in the company?

Bobby76
07-17-2012, 09:56 PM
I assume there will still be a market for projects which rely on donations and won't ever have any kind of profit or revenue generating properties. These in my opinion will still be popular on the various platforms.

SocialCam
08-02-2012, 10:12 AM
If they don't accept equity then they will be left in the dust IMO. Having said this, there will still be a huge market for non-equity crowdfunding, however there will likely be more money in the Equity side of things. Ultimately I see Kickstarter branching off and offering both formats under one platform.

sharkinvestor
08-02-2012, 12:37 PM
I guess they'll just allow different kinds of projects - equity, donations, rewards, or mixed.

Lelocks Trent
08-02-2012, 09:36 PM
Yeah it's quite amazing how much money some of these projects are obtaining via Kickstarter from just offering rewards. Basically projects like Ouya which has taken in over $6 million are preselling their product in exchange for cash up front. This is why kickstarter is such a great platform. Equity will just make things sweeter, and there is no doubt Kickstarter will be one of the leaders in that category as well.

admin
04-24-2013, 09:57 AM
Kickstarter has stated they have no plans to enter the equity side of things, while Indiegogo has said the opposite. In my opinion they both will eventually enter Equity crowdfunding in one way on another. I have to say though the pre-sale model of Kickstart is making them a killing, and is a lot easy to monitor then if they were involved in equity and all the hoop they likely will have to jump through with that. In my opinion neither Kickstarter or Indiegogo will emerge as the Equity funding leaders. One of the platforms which are already involved with equity funding via accredited investors will emerge as the leader. Perhaps TheFundersclub.

Ross Tunney
05-06-2013, 12:40 PM
Highly unlikely. Most projects are VERY indie, and creators probably wouldn't have a clue about how to manage their accounts well enough to handle equity share. That being said, I can't see any reason why Kickstarter etc wouldn't start up sister websites to offer just that.

harry045
05-09-2013, 05:15 AM
I would think they will likely go about things by allowing both equity and non-equity funding. Eventually though the equity projects will be the primary course of generating cash for most projects. Why would you donate when you can own a part of the company, and help them out as well?

Stephen Coffey
05-11-2013, 08:50 AM
I would think they will likely go about things by allowing both equity and non-equity funding. Eventually though the equity projects will be the primary course of generating cash for most projects. Why would you donate when you can own a part of the company, and help them out as well?

With a lot of the projects on kickstarter, I'd rather not own a piece. It'd just be another couple of pennies in a random place that I'd forget all about.

I'm happy getting a reward and then forgetting about the company.

startingtrends
06-09-2013, 12:34 AM
Wouldn't make any sense not to in my opinion when you consider all the money they would lose out on if they didn't offer campaigns for crowdfund investing once it becomes legal.