

Start a business with Kickstarter donors as angel group - tantalor

Wondering whether anyone had heard this idea, or thought about it?<p>Basic idea is, you pitch on Kickstarter and offer equity as prizes.<p>Any reason why this might be illegal, or too inherently risky for investors?
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TwiztidK
I actually thought about this long ago and, if I recall correctly, it was
illegal at the time. It appears as though the Jumpstart Our Business Startups
(Jobs) Act may have removed those restrictions, so a crowd funding investment
operation may now be possible [1]. Something like that could probably be very
successful. For example, had the Light Table Kickstarter offered equity as an
option I can guarantee it would've gained quite a few investments.

[1] - [http://money.cnn.com/2012/04/05/smallbusiness/ipo-
bill/index...](http://money.cnn.com/2012/04/05/smallbusiness/ipo-
bill/index.htm)

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tarekayna
It's very interesting whether this would be possible. I thought the first
guideline on kickstarter prohibits this:

"A project has a clear goal, like making an album, a book, or a work of art. A
project will eventually be completed, and something will be produced by it. A
project is not open-ended. Starting a business, for example, does not qualify
as a project."

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tantalor
I don't see why a company can't be started with one project in mind, e.g.,
Light Table.

The exit might be to sell the product to a buyer once the business case is
made, at which point the investors realize the capital gains.

