Crowdfunding is Broken

  1. Make very general estimates for total cost.
  2. With any cash on hand, do whatever you can to get attention and clicks.
  3. Set price goal and host on a centralized platform (Kickstarter, IndieGoGo, etc) or bLoCkChAiN iT bRo.
  4. Receive money, make the slightest provable effort to complete product.
  5. Stop updating with either an unpolished alpha product or no product release whatsoever.

Stop Being a Cynic, Dude

No. When you take even a cursory glance of the highest-funded crowdfunding projects, it should fill you with woe, too.

Hard to vouch for a single one of the top 14 — in fact, one has to go to #21 on the list (a product called “GlowForge”) to find something that still exists, has a valid use case, and sells a product.

EOS

Most people in the blockchain space know what EOS is — a shitty cryptocurrency — but fail to reflect on the fact that before launch EOS received $4.1 billion… sorry, let me reiterate that.

“The first performant blockchain platform” loooool

Star Citizen

Benefit of the Doubt

Few lawsuits seem to arise from these massive project failures, and if you’re anything like me, it probably leaves you scratching your head wondering “Why?”

If It’s Broke, Fix It

It would be nice if it were that easy. But I truly believe that crowdfunding isn’t broken economically, it’s broken psychologically. There’s two levels to how successfully crowdfunded projects fail on a psychological level:

  1. People love to spend money. When we get our hands on cash, we spend it, and if we get our hands on too much cash, we spend it indiscriminately. Goals get opaque if people believe they have forever to work on them and all the money in the world. Instead of pursuing the concept they promised initially, once individuals have exceeded their goals they’re inclined to **overpromise** and **underdeliver**.

Exceptions to the Rule

There are people who will read this and get angry. “What about this (insert random crowdfunded project here)?”

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