So it's more like a Kickstarter then?
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Replying to @BootlegGirl
Honestly I'm not that familiar with how Kickstarter works.
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Replying to @iBreezy6
People give money to a company or creator to make a thing, in exchange for the thing and input over the thing. Only difference is they can't resell that power
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Replying to @BootlegGirl @iBreezy6
So for instance, I was financially irresponsible in grad school, so Torment: Tides of Numenera has a corpse named after me
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Replying to @BootlegGirl @iBreezy6
Kickstarter is kind of simulating the idea of investment without actually being investment (because there are very strict laws about investing in privately held companies, to protect people from being scammed)
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Yeah, it's ultimately more like PBS: a donation with a gift in return, but without the value of the donation matching the gift.
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Right, and to avoid running foul of the federal law protecting "unqualified investors", KS *can't* sell actual investments of any kind Kickstarter backer rewards cannot promise you any kind of cash return on your money
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Yeah - at best, it'd be a form of gambling, but it would be extremely open to fraud, or just large-scale failures costing people thousands. Securities transactions are very heavily regulated, which comes with some drawbacks.
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Replying to @mssilverstein @arthur_affect and
A big one being access: most people with $1,000 to invest will not be able to access risky startups, which means that they aren't going to be the ones profiting when a company suddenly hits it bit.
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The popularity of online crowdfunding pushed the Obama administration to try to relax the rules against unqualified investment but AFAIK that stalled when Trump was elected I'm still not sure that would be a good thing no matter how many protections you tried to put in place
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Like, bubbles are already easy to inflate right now, *with* the rules that say only existing companies or very rich people can invest in startups
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Replying to @arthur_affect @mssilverstein and
Elizabeth Holmes was only allowed to pitch to "qualified investors" who should've known better and yet Theranos was still one of the dumbest and most destructive scams in history
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Yeah - the trade-off there is that the people who lost their money to this dumb scam could all afford to lose it, so it's not even necessarily a question of the skill of various investors, but a risk-management thing.
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