

Kickstarter Is Totally Disrupting Consumer Electronics, Probably By Mistake - zachh
http://amandapeyton.com/blog/2012/04/kickstarter-totally-disrupted-consumer-electronics-probably-by-mistake/

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eridius
Seems like Kickstarter is also disrupting the game development process,
allowing game studios to produce games without being beholden to publishers.

Examples:

* Double Fine Adventure - [http://www.kickstarter.com/projects/66710809/double-fine-adv...](http://www.kickstarter.com/projects/66710809/double-fine-adventure)

* The Banner Saga - <http://www.kickstarter.com/projects/stoic/the-banner-saga>

* Wasteland 2 - <http://www.kickstarter.com/projects/inxile/wasteland-2>

* Shadowrun Returns - [http://www.kickstarter.com/projects/1613260297/shadowrun-ret...](http://www.kickstarter.com/projects/1613260297/shadowrun-returns)

Even smaller games are getting funding this way:

* Valdis Story - [http://www.kickstarter.com/projects/460275866/valdis-story-a...](http://www.kickstarter.com/projects/460275866/valdis-story-abyssal-city)

* Echoes of Eternia - [http://www.kickstarter.com/projects/1465600975/echoes-of-ete...](http://www.kickstarter.com/projects/1465600975/echoes-of-eternia-a-modern-take-on-a-classic-desig)

~~~
AJ007
Don't forget Leisure Suit Larry! (hope this one meets its fundraising goal)

[http://www.kickstarter.com/projects/leisuresuitlarry/make-
le...](http://www.kickstarter.com/projects/leisuresuitlarry/make-leisure-suit-
larry-come-again)

And not just electronic games, but pen and paper RPGs too:

[http://www.kickstarter.com/projects/autarch/adventurer-
conqu...](http://www.kickstarter.com/projects/autarch/adventurer-conqueror-
king)

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zrgiu_
For me it was surprising at first that Kickstarter even worked. It pulled out
a better part of people that I really didn't hope that it exists on such a
level. People are basically paying for stuff without the 100% guarantee that
they'll get it, without previous reviews and opinions about those products,
and while knowingly being the first batch of users which will collide head-
first with all first bugs and issues.

And most importantly, people are doing this all with an open heart, actually
being happy to encourage and assist innovation and creation of new products. I
would say that kickstarter is one of the coolest and world-changing website
(more than a website.. product, idea) of this decade.

Consumer electronics is just one of the areas KS is disrupting. Software and
games are another one. But there are basically no limits! I wholeheartedly
believe that once KS is popular enough if someone came with a project to send
a video camera to the moon (on which you can buy video time to simply rotate
it and look around) it would get funded right away.

~~~
mertd
I have the feeling that a significant number of the payers are not aware of
the fact that there is a decent chance of the hypothetical product never
seeing the daylight. If not, it will almost certainly be delayed.

When one or two of highly publicized projects fold, I expect a good amount of
Kickstarter complaints.

~~~
317
I don't know... I funded a video game (No Time To Explain) whose frankly was
garbage. I didn't think at the time that kickstarter was responsible. I made a
bet, and I lose. I still put money on projects I find awesome. I am not
everyone, but I have the feeling that consumers are more relaxed when they put
money on a kickstarter project.

~~~
fredwilson
that is exactly right. kickstarter is not a store. there will be bad products
and probably some outright fraud. it is a marketplace like ebay. backer
beware.

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sage_joch
I wondered the other day if Kickstarter might be the next big Internet company
(following Google, Facebook and Twitter). The business model has so much
disruptive potential, and they've already overcome the chicken and egg
problem. I wish it were possible to invest in them. :-)

~~~
tmh88j
That is highly unlikely. Kickstarter is essentially a marketplace for
entrepreneurs. People don't go to Amazon or ebay in the same sense as Google
or Facebook. Sure they have one hell of a business, but only a certain kind of
person is attracted to it. Everyone uses Google (or some search engine) and
Facebook's attraction is undeniable.

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nostromo
I wonder if KickStarter and similar projects could disrupt YC and TechStars.

For example, I could see DropBox raising a sizable seed round on KickStarter
if it was an option when they launched. (Free 250gb plan for a year with a
donation of $50.)

~~~
pkh80
Definitely! Why can't I buy $100 worth of stock in a startup along with 1000's
of other people?

Some SEC rules or something?

EDIT: Then imagine how motivated those 1000's of others would be to promote a
startup they owned a stake in.

~~~
unimpressive
Not sure if that's tongue in cheek or not...

But that was part of the recent JOBS act. You'll be able to do that soon for
good or ill.

~~~
sage_joch
Given that law, I wonder if there's going to be a land grab to become the
kickstarter of startups. Should be fun to watch.

~~~
carguy1983
If this becomes legal, wouldn't kickstarter instantly be the kickstarter of
startups?

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dlf
They've said they're not interested in doing it, which is kind of surprising.

~~~
waterlesscloud
There will be substantial regulatory issues to deal with, so it's not too
surprising they don't want to drag themselves into that. Better to maintain
their focus.

~~~
MrJagil
Well, that opens up the spot for a new startup.

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benologist
Where disrupting means tiny, tiny, tiny niche with a disproportionate amount
of hype.

Games are another example eridius pointed out, showing 6 successful projects
out of the 10000s of games that will be produced outside of Kickstarter this
year! What's happening is in some cases awesome but it's not disruption.

~~~
jerf
The timeline is never:

    
    
       Day 1: Disruptive company is formed.
       Day 2: Disrupted industry in flames, disruptive company wins!
    

It's a cowpath today, but I think there's every reason to believe this one can
and will be paved.

~~~
rplnt
This Red Hat video (Truth Happens) is very appropriate:
<http://www.youtube.com/watch?v=RXDsRoc6MGo>

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bambax
> _Consumer electronics are among the most well-funded projects on
> Kickstarter, (...) which (...) means that consumer electronics as a market
> has been ripe for disruption all along_

So true. Kickstarter is Wordpress for gadgets; anyone with an idea and some
talent and experience can make something without first needing to get pre-
approved by some self-appointed authority.

I think anywhere where someone says "you can't do that" is ripe for this kind
of disruption. So what's next?

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steve8918
Is there a place that lists the projects that ended up being a failure? I'm
curious what the failure rate of Kickstarter is, and if fraud artists are
attempting to rip people off via it. Also, if the failure rate starts
increasing, would that jeopardize the entire business model, if people lose
confidence that the projects will see the light of day?

~~~
armandososa
Maybe the Diaspora project qualifies as a failure or, at least, as a
disappointment.

~~~
muyuu
I'm not following it, but doesn't it work as advertised? what's the
disappointment then?

~~~
Joeboy
I guess the disappointment is that people don't use it much.

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jedberg
FWIW, I use Kickstarter solely as a way to fund art projects, a sort of modern
art patronage system if you will.

I've never even considered that the consumer electronics projects are art in
their own right.

~~~
AdamTReineke
Is only funding art intentional or haven't you seen anything in different
categories that you wanted (and were willing to spend $X for)?

I've only funded a CD for my friends' band, but if I wasn't a student (aka,
had disposable income), there are quite a few things in the consumer
electronics space that I would have loved to pick up.

~~~
jedberg
I guess I never really thought about it. I've never gone looking for things to
fund -- I've only funded stuff my friends are doing.

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ansible
I diagree with the thesis.

An art project like the one mentioned is relatively small. CE projects, which
want to ship millions of units is an entirely different affair, usually
costing millions of dollars and large teams composed of many different
specialities.

Even if you did raise $5 million USD you still need a design team and
manufacturing. And there's no guarantee of success either. I just don't see
Kickstarter helping much.

~~~
mechanical_fish
Perhaps we merely need to _modify_ the thesis: Kickstarter is the _user
interface_ by which independent designers connect a thoroughly mature, ever-
improving ecosystem of OEMs and prototyping shops to consumers, thereby
potentially disrupting consumer electronics.

The real force here is small-batch manufacturing, which has been a long time
in coming. Laser cutters, water-jet cutters, 3D printers, and - perhaps more
importantly - the technology to enter a credit card number, press a button,
and ship your CAD drawings around the world to a shop in some Chinese city
where a team of machinists can whip up a thousand units for small amounts of
money.

But the way this technology _manifests_ to US consumers is via Kickstarter
campaigns.

And, sure, if you want to scale any of these Kickstarters up to millions of
units you'll need a real manufacturing team and capital. But, as with software
startups, it's easier to raise capital once you've found product/market fit.
And here we have the other advantage of Kickstarter: It makes it easier than
ever to find and energize a collection of early customers.

~~~
ansible
Don't think for a minute I'm satisfied with the status quo. I'd love it if all
these rapid prototyping tools got cheap enough for mass production. But that's
not how it is now or for the near term.

Actually, there is one area where rapid proto has helped, and that is with PCB
manufacturing. It is relatively easy to get boards done quickly. The board
outlines are done with CNC, and the holes are often laser drilled.

But your job is definitely not over when you email the design file, in many
ways it is just beginning.

------
anateus
Uh... crowdfunding sounds like the PERFECT model for consumer electronics!

It's a business that requires high startup capital, and where uncertainty
comes with much greater costs than software. You're going to be making
thousands of units of whatever it is you're making if you want it to be even
remotely cost effective.

So, a method of funding where customers vote with their wallets before you
face the biggest headache in consumer electronics--turning a design/prototype
into something mass produced--sounds like a great fit.

------
tectonic
I'd like to see a graphical Dwarf Fortress funded through Kickstarter.

~~~
thristian
I don't know how it compares to the depth of Dwarf Fortress at the moment, but
there is Towns:

    
    
        http://townsgame.com/
    

I've been watching a Let's Play of it on YouTube recently:

    
    
        http://www.youtube.com/playlist?list=PL13C2217355664856&feature=plcp

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TeMPOraL
Funny; I only discovered that there are non-tech projects there quite
recently. I found out about Kickstarter via HN, so most of the projects I saw
were hardware and software ones, and guess what... I think it's what was
needed.

There's lot of creativity to be unleashed in building new technology, tools
and practical gadgets (as opposed to what typical commercial gadget is). And
Kickstarter tech projects are definitely awesome-first, money-next type of
projects - maybe because people involved are often building them for
themselves? I hope to see more such projects, I will be happy to back them.

------
yonasb
The big consumer electronics companies should be really scared right now.
Hardware startups are coming. Wouldn't be surprised if some hardware
incubators start popping up too

~~~
bogolea
There are several that exist already. Here is one in located in San Francisco.

<http://www.lemnoslabs.com/>

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chaostheory
" Consumer electronics are among the most well-funded projects on Kickstarter
despite the fact that it’s dubious whether they should even be included in the
scope of fundable projects. "

Why would it be dubious to have them be included as a fundable project? Am I
missing something?

~~~
_delirium
Kickstarter has a sort of vaguely worded scope that indicates they're
interested in funding art and other "creative" projects, but not normal
products. Some tech clearly falls into the creative/artsy category, but some
of the tech projects on Kickstarter are veering closer towards "just" funding
a consumer electronics product.

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jimster01
I would disagree with the post. Kickstarter doesnt change the field of
consumer electronics at all. The products created would usually not have been
made but for the pre-sale funding available.

I would also disagree that these items can even be considered consumer
electronics, they are widgets at best and really destined for a large consumer
market.

Kickstarter is a great platform but like the instagram sale recieves too much
hype whenever something big goes up.

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hef19898
Kickstarter ay have started as a growd funding plattform for art projects. But
by doing that, they lay ground to a new way of funding, well, virtually
everything. And since funding can be a major pain in the ass, Kickstarter has
a opened up opportunities nobody would have ever dreamed of.

When they now get a banking license or an other type of SEC "enter random
monetary regulating body" blessing, the finacial industry should worry! ;-O)

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tocomment
Does anyone know how to do a consumer electronics startup? Can you contract
out the design to someone knowledgeable? How do you find such a person? How do
you get it manufactured?

Are there a lot of regulations to be aware of?

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srconstantin
Where do people selling consumer electronics on Kickstarter find manufacturers
and supplies? (My first guess would have been Alibaba, but is that feasible
for someone really starting from zero?)

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carbocation
I think, instead, that this is teaching us something about the distinction
between consumer electronics and other goods requiring some creative genesis.

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e40
Is anyone else bothered by the use of the word "mistake"? It seems
"unintentional" is a more descriptive term.

