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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The top 10 reasons Brexit isn't working, according to Brexiteers

We'd have got away with it, if it weren't for that pesky Mark Carney. 

Over the next few years, it is likely that the economy will shrink, that the entire government will be consumed by trade negotiations at the expense of every other priority, and that EU leaders will use their considerable negotiation advantages to theatrically screw us. As this unpretty story unfolds, those who argued confidently for Brexit, in parliament and in the press, will feel compelled to maintain that they were right, and that if it hadn’t been for some other impossible-to-foresee factor everything would be going splendidly. What follows is an attempt to anticipate the most predictable post-rationalisations; I’m sure there will be more creative efforts.

1. WHITEHALL SABOTAGE. If we’re making no progress in trade negotiations, that’s because the civil service is doing its best to scupper a successful Brexit. That power-crazed madman Jeremy Heywood will stop at nothing to ensure he is bossed by Brussels, and the snooty bastards at the Treasury are working to subvert the national will out of spite. Even as our finest ministers strive manfully to cut Britannia free of its enslaving chains, all they hear from functionaries is “It’s a bit more complicated than that”. It’s only complicated because they want it to be.
 

2. REMAINERS TALKING DOWN THE COUNTRY. God knows we tried to reach out to them, with our gently teasing admonitions for being elitist snobs who just needed to get over it. But did they concede that a glorious future is at hand, if only we all wish for it? No, my friends, they did not. Instead, they sulkily point out how the things they predicted would happen are in fact happening, as if this somehow proves they were right. And since, inexplicably, the world agrees them, the whiners’ prophecy is being fulfilled.
 

3. THE GLOBAL ECONOMY. It appears the UK economy has sunk into a recession. Now, the whiners will tell you that this has got something to do with the vast uncertainty created by taking a fundamental decision about the nation’s future without a clue about how to implement it. In reality, of course, the recession has been caused by the same global economic headwinds that had absolutely nothing to do with the 2008 financial crisis, which was all Gordon Brown's fault.
 

4. ECONOMISTS. Since they nearly all said that Britain would be worse off if it voted Out, they now feel compelled to tell us that things are indeed worse. OK, maybe they are worse. But think about it: if we hadn’t voted Out, the economy might be even more calamitously buggered than it is now. This is logically unassailable. But do economists ever point it out? Do they Brussels. Yet sadly, global businesses, investors, consumers, and lots of other people who frankly lack gumption or vision, take these so-called experts seriously.
 

5. MARK CARNEY. Let’s get this straight: the Canadian governor of the Bank of England doesn’t want Britain to succeed, because then we’d be a direct competitor to his motherland. But with his honeyed voice and perpendicular jaw and incessant references to “data”, this man has gone a long way to convincing much of the public that he is some kind of disinterested authority on Britain’s economy. In reality, of course, he is out to destroy it, and seems to be making a pretty good fist of doing so.
 

6. EU BUREAUCRATS. You know those people we spent years attacking for being interfering, self-enriching, incompetent fools? Turns out they are now keen to make our lives as difficult as possible. The way to deal with this, of course, is to mount a national campaign of vilification. Another one. Before long they will be begging for mercy.
 

7. THERESA MAY. Look, we all wanted her to succeed. We knew she wasn’t one of us, but she wasn’t exactly one of them either, so we gave her a chance. Yet perhaps it is time to admit the possibility that the Prime Minister isn’t making this work because, when it comes down to it, she just doesn’t share our blood-pumping, sap-extruding belief in Britain unbound. In short, she’s just too damn reasonable. It’s time to embrace the unreasonable man. What’s Boris doing these days?
 

8. THOSE OTHER BREXITEERS (i). Not only can we not get the Remainers to present a united front to Brussels, it seems that we can’t even rely on our fellow Brexiteers. Most of us are on the same page: take back control of our borders, blue passports, compulsory blazers, onwards and upwards to the sunlit uplands. But there are some among our own ranks who frankly don’t get it. These latte-sipping media types simper on endlessly about the importance of retaining access to the single market and seem awfully keen on Norway. Why don’t they just go and join Remain?
 

9. THOSE OTHER BREXITEERS (ii). Hey guys, the problem is this: Brexit got hijacked by the roast beef and two veg brigade, OK? For us it was always about unleashing the entrepreneurial spirit, shaking off the dead hand of Eurocrat regulation, being more human, that kind of thing. We had to go along with all that anti-immigration stuff but believe me we were biting our tongues and crossing our fingers. Some of our best friends are Turkish.
 

10. NONSENSE, IT IS WORKING.

Ian Leslie is a writer, author of CURIOUS: The Desire to Know and Why Your Future Depends On It, and writer/presenter of BBC R4's Before They Were Famous.