Take a look at this article from early last month concerning one of the most popular Kickstarter campaigns ever.
It seems that the company producing the "Coolest Cooler" is running into some issues, and their customers are pretty irate. "Kickstarter and Coolest are quick to say that when you invest in a Kickstarter, you’re merely funding an idea and that you’re not actually entitled to a product on any sort of timeline." What do you think of this statement? Is this any way to run a business? Should the original funders be compensated for waiting so long?
Feel free to leave any other comments you have on Kickstarter. What are your opinions on the role of websites like Kickstarter for start ups?
No, the original funders should not be compensated. When people fund companies/products on Kickstarter they should know that there is no guarantee that the product will even launch in a timely manner. One must take a risk to be the first one to have that product.
ReplyDeleteThis is true, but who cares that much about just seeing one concept take off? There should definitely be some sort of return for the investors otherwise what's the point? As long as the product takes off, the investors should be compensated in one way or another.
DeleteI agree Kenny, but they should at the very least get their product at a reasonable date and not be expected to pay an additional fee just to receive their product. The owners should have had a better understanding of their pricing model and allowing it to reach this level is negligence at its finest.
DeleteWhile I agree with Kenny the original funders should not be compensated because when investing in a Kickstarter they are investing more in an idea than a physical item. However, consider the success of this Kickstarter I do not think that they should have to the pay the additional 97 dollars to get the project. In this case I think some blame can be put on the founders of the company for making incorrect estimates and setting the initial price point to low.
ReplyDeleteI agree with both Kenny and Bharath. Coolest Cooler is just like any company out there and investors may or may not get anything on their return.
ReplyDeleteThe website, in my opinion, is a great idea to get your name out to everyone. When starting a business or making a new product, it is hard to get your name out there, and being able to post on websites like Kickstarter, customers are able to look up names they have never heard of.