Tue, Nov 06, 2012 | 11:48 GMT
Kickstarer CEO has no intention of selling the business
Kickstarter CEO Perry Chen has stressed that he hopes his crowd funding service will be an “institution for generations,” and that he has no intention of selling it, or of opening up stock to investors.
GI.biz reports that Chen recently gave a talk at the GigaOM Roadmap conference yesterday, where he set the record straight on Kickstarter’s independence.
Chen also stated, “We think the most disruptive aspect is the removal of the investment component. People are supporting projects because they want to see them happen. It’s so different than giving money because you want to make a profit.”
The same approach applies to Kickstarter itself, says Chen, who ruled out the possibility of equity backers. To date the service has generated over $350 million in crowd funding across 76,000 projects.
Regardless, Chen is not willing to sell, “We don’t ever want to sell this company, we don’t ever want to IPO. We want to build this institution for generations,” and distanced his creation from traditional stores and companies by saying, “It’s not Best Buy. You’re supporting somebody at a decently early stage, and you should understand that’s what you’re getting involved in.”
“Delays are not infrequent. It’s really about the creator setting the expectations for backers, and then if they have trouble, being very transparent,” he added, stressing that its important for backers to understand that they don’t simply buy and receive something like a store, reminding them that it’s an investment platform.
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