

Ask HN: Funding Died. Is this a reasonable response? Any suggestions? - synnik
http://www.sweethavenarts.com/gallery.php

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michael_dorfman
I hate to be that guy, but this sounds crazy.

Let me get this straight: You want 20,000 people to send you $20 each, and a
postcard. You'll have an exhibition of these 20,000 postcards, and send the
"artists" 60% of the sales price of whatever postcards you happen to sell. So,
if someone picks my postcard out of the 20,000 and then decides to pay $33 for
it, I break even.

 _Huh?_

So, that's how I react. I would expect response to be close to nil.

What would I recommend instead? Well, first of all, I would continue to work
banks/foundations/investors. If you have a viable business plan, and a piece
of property with some value, you should be able to raise some money (and leave
a gap significantly less than $400K).

If you are going to crowdsource the remainder, I'd either a) go with straight
donations-- it's simpler, and more honest, or b) raise the "donation" amount
to $100/$200, and use it as an "entry fee" in a _skill-based_ contest (not a
game of chance-- you'll want to talk to a lawyer about gaming laws) with a big
enough payout to raise interest (i.e., a slice of the company, or a piece of
the property, etc.).

~~~
synnik
No worries, It is good to be "that guy" -- I think your reaction is how most
people would react. Thanks, though -- that is exactly why I posted it here...
so I could see what people really had to say.

One piece of context to add is that the structure I described is exactly how
some art shows work today. Artists don't participate in shows to make a
profit. They participate because they like the concept and want to be part of
it.

But I guess this does confirm that the thought processes that take place in
the actual art world aren't going to translate over into how people think
about things online.

~~~
michael_dorfman
I do understand that most art shows work this way.

I also know that most art shows I've been to don't display 20,000 postcards,
nor are most patrons willing to spend $33 to buy a postcard.

However: using your "art world" connections might not be a bad idea. Why not
speak to some (financially) successful artists/gallery owners that you know
and ask them how they'd raise money in your situation?

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brk
It's reasonable, it just seems improbable.

You need $400,000, and you're going to take donations $20 at a time. That's
20,000 people. Let's even say 10,000 people (you have some cash of your own,
some people will just give you free money).

I think this is the sort of thing that you end up stuck in the middle. You'll
raise $5,000, and get stuck in red tape around tracking and paying taxes on
the "donations", and won't have gotten any measurable amount closer to your
goal.

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synnik
I haven't linked the page anywhere but here yet. I trust this community as a
reasonable gauge of how people will react, and wanted to know whether or not
you think people will have enough interest to make this happen.

(see my comments on the 'what are you working on' thread for a little more
info on the project I was trying to build.

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covercash
So you want $20 and _if_ you succeed in reaching your goal, you then want me
to create art to display in your gallery. If that artwork sells, you then take
a cut. If you don't succeed in reaching your goal, you keep my $20...

Sounds risk free for you.

~~~
synnik
Thanks - you made me realize that my writing on the page addressing exactly
this issue was unclear or placed wrong and not read.

I think the overall reaction shows that it is not worth pursuing the idea, but
if I change my mind, I'll definitely re-write my plans around that issue.

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mahmud
I deleted several replies, and decided to go with the following:

If this is your best/last idea, move on. Cut your loses short and find
something else within your means.

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mschy
Correct me if I'm missing something, but won't this require that you raise
$700k or so, so you can pay the taxes, and then spend the $400k?

That strikes me as... ambitious.

Also, the whole thing seems much more 'help me out of my problem!' than 'let
me do something cool for you!' I think if you want a good shot of this
working, you need to frame it very differently, and find a way to provide
easily communicated value to the donors.

~~~
synnik
I need to spend 250K. Your logic is correct, and the 400K number already takes
that into consideration.

