Monday, July 8, 2013

An Update on My Earlier Crowdfunding Post

A couple of months ago, I posted a summary of "crowdsourcing," with special attention to "crowdfunding" and its flagship online sites, Kickstarter and Indigogo. Follow this link to read that post.

The Wall Street Journal published an article on June 21, 2013, by Ellen Gamerman, which can be read as a nice update to my earlier post. Titled "The Trouble with Kickstarter," the article discusses the uncomfortable feelings that pushy crowdfunding campaigns may create for the friends and family of those who are asking for funding.

"The art-world equivalent of paying protection money to the mob." -- this is how one actress interviewed for the article described her contributing to numerous campaigns by colleagues and acquaintances in her profession.

The article also describes how things go wrong with crowdfunding campaigns, including:
  • People raiding their social networks for cash
  • Crowdfunding use by celebrities, and children of celebrities, who need them the least.
  • "Helicopter" parents fundraising on behalf of their children.
  • Reward systems that end up being hard to fulfill.
  • Projects that secure financing, yet do not get completed.
Follow this link to read the entire article online.