[ponker]

Why is a YC company, perhaps the kind of company with the most access to capital, on Kickstarter? I get that it's free capital but it's a terrible look. I will wait until you have something to ship, or if YC underwrites you and says that they will refund Kickstarters if you fail to deliver.

[erohead]

Kickstarter is not the same as venture capital (and is certainly not 'free capital'). It's validation that actual customers are interested in the product and want to buy/use it. There are certainly risks associated with backing a project as a customer, but presumably the folks backing this campaign feel like the benefit is worth the risk.

[ponker]

It absolutely is free capital, in the same way that a 0% interest bank loan would be free capital. You don't have to give any interest, any equity, or any collateral in case of failure. How much freer does capital get?

[tomhoward]

Reputation has a value, and companies/founders who fail to deliver on a crowdfunding campaign incur a huge reputational cost.

Investors are far more willing to support founders after an earlier failure than crowdfunding customers are after an unfulfilled campaign.

[m_tweedie]

Hi there, thanks for your comment. Kickstarter is an extremely useful way to accelerate the development of Quell for a few key reasons. It lets us manufacture and ship at scale, guaranteeing our backers the lowest price possible. Kickstarter also enables us to move faster towards bigger stretch goals. We can use it to ensure that we are building something that people actually want, which gives them a voice in shaping the product and demonstrates to other sources of funding that there is real demand for it. Of course, it also comes with the responsibility to really deliver on our promises or make good with our backers, no ifs or buts, and we take this very seriously.