"The most disruptive aspect of Kickstarter is the removal of the investment component"By http://profile.typepad.com/1237764140s22740 // November 6, 2012 in Crowdfunding
Really powerful story this morning by Liz Gannes on All Things D this morning.
She pulls together quotes of Kickstarter CEO Perry Chen, speaking at a GigaOM conference in San Francisco yesterday, that express a very clear and compelling vision for Kickstarter.
The big takeaways from the story - not so clearly set out in the text story on GigaOM - are these:
- Kickstarter isn't tempted by equity crowdfunding under the JOBS Act. "We think the most disruptive aspect [of Kickstarter] is the removal of the investment component," Gannes quotes Chen as saying. (See the video at about minute 21 to hear the quote and the surrounding context.)
- Kickstarter has yet to find the best way to get backers to understand what Kickstarter is. "You’re supporting somebody at a decently early stage, and you should understand that’s what you’re getting involved in," Gannes quotes Chen as saying.
One point both stories capture: Kickstarter doesn't intend to IPO or sell out. "We want to build this institution for generations," Gannes again quotes Chen as saying.
The disavowal of an exit prompted a sarcastic comment from Bob Warfield: "A company with venture investors that doesn't ever want to IPO or sell. Good luck with that."
That comment prompted an astounding response from Fred Wilson, whose firm, Union Square Ventures, backs Kickstarter: "Perry was upfront about that before we invested Bob. there are more ways to get a return than selling out."