As a backer, I fund someone’s dream and, hopefully, help to make it a reality. Through this, I disrupt the market and am a change maker.
But, the crowdfunding process is risky. Frequently you will see in the mainstream media that crowdfunding is a case of “buyer beware”. And it doesn’t help when crowdfunding platforms, like Kickstarter, admits that “Our processes, and everyday thinking, bias heavily toward creators“.
There is a small issue that is easily overlooked: as a backer, I fund the creator’s vision and dream. Moreover, 5% of my money goes towards Kickstarter. Without backers’ money, there is no Kickstarter, and project creators would need to find other ways to raise money.
As backers, we need to fully understand and get clarity on the crowdfunding process in order to confidently create the crowdfunding transaction and manage the risks. After all, I don’t want to give easy money to Kickstarter or subsidize someone’s daytime TV watching.
Please contact me if you have any comments, suggestions or general feedback.