Sex, Lies, and Kickstarter
If you're like me, you avoid social media since you spend most of your time actually working! But, I spend 10-15 mins a day looking around, scanning groups of interest on FB on electronics, game dev, robotics and the like. Of course, now and then I click the funny cat video :) And write these little posts if sufficiently pissed off like today.
That said, I am really disappointed in what I have been seeing happen to crowd funding platforms in the recent years and now seems like every day someone is pulling some scandalous shady moves. Like most entrepreneurs we always need money, and hardware development is extremely expensive, but after 15 years of developing hardware products, one thing I know for certain -- you NEVER sell a product that doesn't exist, or at least you have a firm manufacturable product, you know costs within 10-20%, you have vendors lined up, CMs (contract manufacturing) and so forth.
That said, I have been really excited about KS since I was planning on using it to launch some of my products that I have been working secretly on for the past couple years including a Smart Watch, Credit Card Game Console, and ultra small Autonomous Robots. However, I would never in a million years run a KS campaign without having the products built 99-100%. There are too many variables in hardware design. Sure, its ok to add features, cosmetics, variation to the hardware based on KS and stretch goals. But, to go on KS and say you have a product "READY FOR MANUFACTURING" and NOT is tantamount to criminal fraud and simply stupid.
And it seems everyone keeps doing this as well as setting out ridiculous time lines. There's a reason every single hardware KS fails -- the people doing it simply have NEVER built hardware -- if they had, they would have the hardware done, or 99% done, they would not set ridiculous schedules based on months, when rather it needs to be years.
In fact, the reality it from concept to shrink wrap many consumer products that are relatively simple will take about 2-3 years. Hobby products will take 6-12 months. And remember, this is under normal circumstances, not the pressure of 1000's of backers down your neck, angry significant others because they never see you, huge sums of money that many people are simply not experienced enough to handle --
Case in point; I just read about the Peechy Printer guy embezzling half a million dollars! And let's not talk about the RetroVGS scam, or the new Star Citizen game saga, just crazy stuff...
This is what happens when you give money to dishonest people, they loose their minds, buy cars, houses, strippers, you name it. Somehow they figure out a way to blow the money, and become addicted to raising more dishonestly. Instead of sitting in a room and building the damn product!
Why do I care? I legitimately want to use these platforms to fund the final development and manufacturing of some cool products. But, at the rate things are going, kickstarter, indiegogo, and the rest are going to be useless to everyone after the SEC, IRS, FTC, and other organizations with scary acronyms put all of this on lock down.
Therefore, I say, anyone that is thinking of investing in a hardware kickstarter, or even a software kickstarter (games for example), do some due diligence on the founders, have they actually every MADE anything? Ever ran a business? Every shipped a single product? If not, then chances are they will fail horribly since even when you have experience in all those things, its DAMN hard to design, build, manufacture, and ship a product no matter what.
So, next time you're thinking of supporting a kickstarter hardware project, just flip a coin and if its heads just give me the money instead, I guarantee I will actually use it on hardware development! And if its tails, you would be better off buying a lottery ticket with a 1 in 40,000,000 in change chance of winning!
And in the off chance, the coin lands on its SIDE -- then go ahead and fund the kickstarter :)
President at Solares LLC
8 年On start-ups...But how can you sell something that does not exist! Well, from a startup perspective I experienced exactly that. Where the power of marketing and branding and by sheer fortitude thoroughly overwhelmed the industry expectations, while internally acknowledging that the hardware / software combination did not stack up to those things that were promised. It was the first time I personally experienced the power of marketing to get product sold before it was ready. The exceptional talents of the team delivered on those expectations. On Kickstarter. I have supported Kick starter projects/products especially when I know the individual personally. I do this because of funding and to help with critical mass. Because I personally know the follow through abilities it makes it easy. I believe most other kick starter followers do the same for their personal contacts and that's how these products start their life cycle even if they don,t make a million of them?
Acceptance Yoga - Exclusivity for Everyone
8 年I got burned once on a crowdfunding site, and I realized that even though it looks like you are buying a product, that's not really what it is. You are voting for something you would like to see exist. Better to think of your crowdfunding as a donation than a purchase. I'm not certain that crowdfunding could exist if there were diligence rules in place that govern angel and VC investing, but it seems something could be done to make it more clear for first timers.
AWS Certified Welding Inspector / ASNT Level II certifiable Ultrasound Technician I am very happy at my current position. I am not open to offers of employment or other contract work at this time.
8 年I have been tempted to back Kickstarter projects a couple of times but, with the exception of one project created by a friend, the feeling passed. I read their FAQ today and learned a couple of things. First, Kickstarter makes their 5% of total funding fee for every successfully funded project. [Their fee-processing partner also takes their cut : 3% + $0.20 per pledge or, for pledges under $10, 5% + $0.05 per pledge.] Second, Kickstarter places all accountability on the back of the creator. Kickstarter makes their money whether the project is successfully-completed and delivered or not. This sounds like a a classic case of "I've got mine. You get your own." THAT is how scams can be perpetrated on backers acting through a sense of goodwill or altruism. I will leave future Kickstarter funding to others. Caveat emptor!
CEO/CTO at 3000AD, Inc
8 年It's never going to end until the Feds get in on the act and really start doing something about it. The FTC is largely useless because the crowd-funding scams they have gone after, those people got away with it, kept the money etc. And no liability. Further, the onus is on the crowd-funding sites to self-regulate. For starters, they can do away with stretch goals, implement milestone payments for various stages of completion etc. KS now requires a working prototype for hardware projects; that's a start - but it simply doesn't go far enough.
I like building cool things
8 年I was a big fan of your game development books. I can't wait to see what you've got in the works.