
Kickstarter Focuses Its Mission on Altruism Over Profit - dpflan
http://www.nytimes.com/2015/09/21/technology/kickstarters-altruistic-vision-profits-as-the-means-not-the-mission.html
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dyarosla
It took almost one year into building my business to realize that I actually
had the option to not take on venture capital. That is how ingrained the idea
of taking on capital and later either going public or getting acquired is in
most startup circles. Bootstrapping almost felt like a non-option until I
later heard about the prospect from several other (less-vocal) sources.

I think it's great that Kickstarter, a fairly young business with a prominent
presence in the press, is showing yet another option that companies have
outside of the common IPO/acquisition routes.

~~~
VelNZ
I am endlessly surprised at how ingrained this idea is too. Hanging out in
places like HN, it feels like that's the only way one can build a business
when it really isn't. There's nothing wrong with starting slow and gradually
transitioning to working on it full time as/if demand grows.

~~~
vacri
This is basically the difference between 'small business' and 'startup'.
Startups are a subset of small businesses that take on external capital to
grow quickly. HN feels like startups are the only thing around because...
well... it is (or was) the marketing forum for a startup accelerator, and
hence not really focused for the slow, measured small business ramp-up.

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dmritard96
OK, so given that Kickstarter isn't fully bootstrapped, if they say they never
want to sell or exit, how do they not make all of their investors upset?
Dividends, buy backs? I like their conviction but it would seem like false
advertising to the investors.

~~~
ritchiea
I heard their founder/current CEO Yancey speak at a startup accelerator and
speak extensively about the business. According to him they told their
investors they have no intention to have a liquidity event. He suggested the
investors were in interested in Kickstarter as marketing for their firm. It
seems like they didn't take very much money. Seemingly a large enough sum to
help grow the business but not large enough to shy investors away from a
business that doesn't aspire to provide meaningful returns.

Have you listened to the Startup podcast's coverage of Gimlet media? Seems
like a similar situation, some unique businesses can secure prestige rounds
providing they are not seeking huge amounts of capital.

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avivo
This is great news. I'm thrilled that Kickstarter was able to do this, that
its investors let them, and that the NYT thought it was worth writing up.

I hope other companies follow suit, and that an ecosystem can develop of such
companies. This page goes into how it is apprently very possible to get
investment as a benefit corp: [http://benefitcorp.net/investors/who-investing-
benefit-corps](http://benefitcorp.net/investors/who-investing-benefit-corps)

Here is principle from Kickstarter's benefit charter: "Kickstarter will not
lobby or campaign for public policies unless they align with its mission and
values, regardless of possible economic benefits to the company." (the charter
[https://www.kickstarter.com/charter?ref=pbc_letter](https://www.kickstarter.com/charter?ref=pbc_letter)
also contains those values).

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Yancey
If anyone has questions about how to do this, or what this means for
Kickstarter, feel free to fire away.

~~~
eevilspock
Hey Yancey.

Do you know of a community for "social profit" oriented organizations, where
we can share information, learn from each other, collaborate, recruit and
inspire more people to make the switch?

(HN naturally tends to be profit or tech-for-tech's-sake oriented so topics
such as this tend to get buried. Case in point, this article got little if any
time on the HN front page. Readers here will debate endlessly about Android vs
iPhone, but arguments that challenge tech's current culture such this other
article from another New Yorker today tends to fall on deaf ears:
[https://news.ycombinator.com/item?id=10252616](https://news.ycombinator.com/item?id=10252616))

I'm working on a project (tentatively named GiveHub) to get more social good
and nonprofit projects onto GitHub and to enable and encourage coders to
contribute to them. While open source is itself a social good, it is usually
indirect so. The level of open source focused directly on social good seems
very far below its potential. I believe many coders would love to contribute
their time and skills, but it's hard to find projects that match their
interests and skills, and even when found, it's not easy to contribute.

I live in Brooklyn and would love a chance to chat with you over coffee, a
drink or lunch sometime. I'd come your way and make it as convenient for you
as possible. You can find my email address in my profile. I'll reply with my
real, non-eevil identity. :)

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gkop
My first learning about Kickstarter the company was via the Diaspora
Kickstarter. Since then, I've become a bit cynical of Kickstarter for all the
sketchy campaigns and cagey setting of expectations. Going B Corp wins them a
lot of goodwill from me.

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gozo
> Kickstarter’s mission to “help bring creative projects to life”

Still only available in 13 out of 50 European countries. That's after adding
five countries a few months ago.

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Rifu
Can someone give a simple explanation on the difference between incorporating
normally, incorporating as a non-profit, and incorporating as a "public
benefit corporation"? I've tried to look it up but I'm getting conflicting
information.

~~~
plonh
A PBC has stronger protection against being sued by shareholders for focusing
on goals besides $ valuation .

~~~
oddevan
Also, they are still a "for-profit" entity; they just legally declare they're
going to do things with said profit besides make money for the shareholders.

Going full non-profit would have stricter requirements for income, marketing,
business deals, etc. Mozilla did something similar where you download Firefox
from Mozilla Inc. that has business arrangements with Google and Pocket (for
example); The Mozilla Foundation itself can't enter into those sorts of
agreements without violating their non-profit status.

It's all really complicated and a big headache and Kickstarter's doing a good
job by avoiding all that, honestly.

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shmerl
That's great. I appreciate them making such choice.

See also their charter:
[https://www.kickstarter.com/charter?ref=pbc_letter](https://www.kickstarter.com/charter?ref=pbc_letter)

