Kickstarter doesn't want to be a venture capitalist

The crowdfunding company likes raising money for artists, rather than seed funding for companies.

Reuters blogger Felix Salmon shares my fascination with Kickstarter, and has been covering its uneasy transformation from an online begging bowl for artists to, essentially, a shopping site for products which don't exist yet.

Salmon reports from the Wired Business Conference, where Kickstarter co-founder Yancey Strickler spoke to Wired editor Jason Tanz. He writes:

Strickler is clearly much more conflicted about the way that his site’s most high-profile projects — the latest being the ridiculous Pebble watch — are turning the site into some kind of online shopping platform. He came onstage directly after Marc Andreessen, who was talking about how Kickstarter was something of a Plan B for Pebble, after they had failed to raise venture funding. Now that the company has shown that there’s more than $7 million of real demand out there for its project, however, that "derisks the company", says Andreessen, and makes it more likely that they can raise VC funds.

This didn't sit particularly comfortably with Strickler. "Kickstarter is for creative projects," he said. "We prefer creative expression to maximization." More generally, he said that “we don’t allow corporations to use Kickstarter”, and talked of the "danger" that funders will view a project as a commercial transaction — spending money on a thing — as opposed to a funding transaction. "People need to have the right expectations going in," he said.

Kickstarter has real potential to change the landscape of how startups operate, but Salmon is right – it needs to make its mind up about what, exactly, it's for. Right now there are 2 million people using it in a way which is very different to how its founders want it to operate, and if those competing pressures come to a head, things could get ugly.

Kickstarter's homepage

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Theresa May is paying the price for mismanaging Boris Johnson

The Foreign Secretary's bruised ego may end up destroying Theresa May. 

And to think that Theresa May scheduled her big speech for this Friday to make sure that Conservative party conference wouldn’t be dominated by the matter of Brexit. Now, thanks to Boris Johnson, it won’t just be her conference, but Labour’s, which is overshadowed by Brexit in general and Tory in-fighting in particular. (One imagines that the Labour leadership will find a way to cope somehow.)

May is paying the price for mismanaging Johnson during her period of political hegemony after she became leader. After he was betrayed by Michael Gove and lacking any particular faction in the parliamentary party, she brought him back from the brink of political death by making him Foreign Secretary, but also used her strength and his weakness to shrink his empire.

The Foreign Office had its responsibility for negotiating Brexit hived off to the newly-created Department for Exiting the European Union (Dexeu) and for navigating post-Brexit trade deals to the Department of International Trade. Johnson was given control of one of the great offices of state, but with no responsibility at all for the greatest foreign policy challenge since the Second World War.

Adding to his discomfort, the new Foreign Secretary was regularly the subject of jokes from the Prime Minister and cabinet colleagues. May likened him to a dog that had to be put down. Philip Hammond quipped about him during his joke-fuelled 2017 Budget. All of which gave Johnson’s allies the impression that Johnson-hunting was a licensed sport as far as Downing Street was concerned. He was then shut out of the election campaign and has continued to be a marginalised figure even as the disappointing election result forced May to involve the wider cabinet in policymaking.

His sense of exclusion from the discussions around May’s Florence speech only added to his sense of isolation. May forgot that if you aren’t going to kill, don’t wound: now, thanks to her lost majority, she can’t afford to put any of the Brexiteers out in the cold, and Johnson is once again where he wants to be: centre-stage. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.