

All or Nothing vs. Keep What You Raise - joaodepaula
http://avc.com/2014/11/all-or-nothing-vs-keep-what-you-raise/

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amirmc
At first glance this made sense but after a second read it doesn't.

> _3) Creators who choose all or nothing are more committed to the project,
> the raise, and the process. Keep what you raise often attracts dabblers._

I feel this one needs more evidence to back up the claim. I'm sure there are
plenty of serious teams who are just as committed on either approach. Just
because someone put a number on something doesn't mean they can actually
deliver if they hit that goal.

> _4) All or nothing raises more money. The amount of money that is raised
> every year in crowdfunding via the all or nothing model dwarfs the amount of
> money that is raised in the keep what you raise model, except in the
> charitable giving category._

That may be little more than a function of Kickstarter being larger than the
others. Not really a helpful datapoint if you're trying to compare the the two
approaches.

> _A founder can’t go out to raise $5mm and then say to the investors “well we
> only got $2mm of capital committed, but we are going to close on that next
> week.” That just doesn’t fly_

Isn't this exactly what happens in a 'party round' or a rolling close? We may
never know what the the founders were _trying_ to raise, since they'd close at
2MM and announce it as a success. I'm aware that I'm comparing Angel to VC
here but my point is that some investors are ok with approach.

Oh, and the ending is unnecessarily insulting.

~~~
andyidsinga
i'm not sure the comparison to vc is valid either.

I've heard of people starting kickstarter campaigns who specify a lower-than-
needed amount in order to gain momentum that comes from successfully passing
the funding mark. However, if they didn't get to an unspecified, possibly more
realistic ( and larger ) funding amount they would cancel the project. clever
hack!

not sure the same this can/is done in vc..?

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acgourley
We ran a Kickstarter campaign last year and we specifically wanted the All or
Nothing model because our campaign _made promises_ \- and we only wanted to be
held to those promises if we had a certain level of interest.

