Kickstarter is not a store. Indiegogo is not a store. No matter what crowdfunding platform you’re on, you’re not in a store. This is an undeniable truth, and no matter how angry you are about not being able to bring a cooler with a blender to the beach this summer, you did not buy this cool cooler, you were merely giving someone money to develop this cooler.
This reality may seem strange for the most vocal Internet commenters out there, leading them to the conclusion their pledge for a crowdfunding campaign was an investment. Surely there must be some guarantee in a single pledge, and if it’s not exchanging money for some consumer goods, it is exchanging money for a stake in a company. If that were true, backers of the Oculus Rift would have received several thousand dollars each, instead of a $600 VR headset.
Crowdfunding is not a store, and according to Kickstarter and Indiegogo, it is not an investment, either. Last week, the Securities and Exchange Commission’s rules for “crowdfunded investing”, “Regulation Crowdfunding”, or “Title III Crowdfunding” kicked into gear. Is this the beginning of slack-jawed gawkers throwing their life savings into a pit of despair filled with idiotic consumer products that violate the laws of physics?