Thursday, July 21, 2011

Is Kickstarter.com concept the venture capitalist business model for small publishers?

While looking over the AMAZING job Gareth is doing with Far West (Good work and I am professionally jealous. Got to give credit when credit is due), reading The 4-Hour Workweek by Tim Ferriss, I was thinking about what I would define Kickstarter.com as being.  Kickstarter defines it self as a new way to Fund and Follow Creativity. But if you look further you might say their business model is that of venture capitalist. Venture capital is defined in wikipedia as financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology, IT, software, etc.  While this is not exactly what Kickstarter does, you can see a relationship between the ideas of a venture capitalist and a kickstarter project supporter. So the question is, Is Kickstarter.com concept the venture capitalist business model for small publishers?  What do you think.  Talk to you later...