Kickstarter Game Thread

[ImaNihilist]

I don't see kick-starter game devs not releasing something should they encounter problems. My expectation is that at the very least they would just send out the alpha or beta version and call it the final to shut people up.

The industry does it so why can't indie devs as well? Nothing in the terms of service says the game has to be any good.

What has happened a few times already—although not for a game—is that someone raises money and blows through it before the product reaches production, and then either asks for more money or goes silent. Kickstarter takes 5%. Amazon takes another 3-5% for credit card processing.

The only reason Kickstarter exists is because current SEC rules prohibit you from crowdsourcing investment capital. Only people with over $1MM in liquidity are technically allowed to invest in a company, and a company can not have more than 500 shareholders and remain private. It's also technically illegal to discuss "raising money" if you are a private company.

Kickstarter is just a legal loophole. It allows you to raise money as if it were some kind of single-source donation. If you are posting a project you are not obligated to deliver anything at all. Backing a project is the same as being an investor with 100% downside potential and little, if any, upside. It's basically like hitting the PayPal "Donate" button.

If the JOBS Act passes as is, Kickstarter will probably disappear or change quite drastically. The JOBS Act will change a lot of the SEC funding rules for small companies. The JOBS Act could actually completely change small business in America. It's a shame it doesn't get much attention. The bill is kind of broken, but there's some good stuff in there about funding for small companies.