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May. 29th, 2013 09:24 amLast night was the triumphant return of
freeradical42's Immodest Proposals salon, after nearly a year hiatus. The topic was kickstarter culture.
Since I haven't written about it in a year, a brief resume. Immodest Proposals began as a small salon in
freeradical42's apartment, just a small group of friends sitting around a table drinking wine and arguing difficult questions about futurism and culture. As the program outgrew the apartment, it went public, taking up station at bars across the city. It's part discussion group, part panel discussion, part social mixer. We always try to strike the balance so that as much as possible it still feels like a small group of friends drinking and arguing about the future. Past topics have included the future of agriculture, the ethics of mental performance enhancing drugs, the consequences of offloading memory responsibility to the cloud, and a variety of other cases of practical applied philosophy.
Last night we talked about Kickstarter culture. Anthony Conto, a game designer about to launch a kickstarter, demoed his game and then served as panelist and focal point for a discussion about the way kickstarter has changed the way projects are funded and managed and operated.
We opened the conversation by asking what about this particular moment in the internet's young history made it ripe for the rise of crowdfunding, and a variety of factors were discussed and weighed: The changes in the legal system to make it easier for small investors, the rise at last of microtransactions in the form of app purchases and music downloads, the omnipresent always-on culture fostered by smartphones and wifi, the replacement of the boomer generation with a more internet savvy generation of consumers, new technologies and techniques making prototype and small batch manufacturing more available, faster distribution via UPS/Fedex... All of those things are involved. Someone also brought up a theory of the Adoption Curve of internet tech that argued that it just took time and critical mass for an idea that had a significantly earlier genesis to finally reach the cultural mainstream, that others had tried Kickstarter-like ideas earlier without success.
And then we started moving to the specifics of the change effected, and what it meant for creators and people wanting to start businesses. How kickstarter decoupled them from the venture capital scene, allowed them to attempt small batch projects.
Still, I raised some objection. All this talk of 'kickstarter culture' has a tendency to reject the value of past DIY cultures. I cited Trivial Pursuit and Monopoly as board games developed as small batch regional projects before they struck corporate distribution deals. I was shouted down in the moment for speaking from anecdata, and I wasn't invested enough in the point to really press it, but in the light of morning and with esprit d'escalier and nobody to gainsay me, I will mount a defense of my point.
In the past, there were plenty of people with kickstarter-like projects. They'd borrow a few thousand bucks from a friend or save up from their other job, hire out a small local print shop, and try to convince a local store to carry their product. If things worked out, if they managed to get local word of mouth, maybe they would look to expand. Maybe they'd look for partners to help them expand. This was at the core of American entrepreneurial culture.
And yes, most of these projects never hit it big. Most of these projects never made it past that first stage. Even most of the successes were only regional successes. But that's business. Even if kickstarter lets entrepreneurs today fund their first batch, there's no guarantee that any of them will continue to sell after that initial batch, either. (And since often kickstarters offer their product essentially as a discounted pre-sale, they're potentially cannibalizing future full-price sales for the seed money for that first print run. )
The real point is that we don't have the small local print shops and small local distribution venues that we used to have. Kickstarter fills a void in our entrepreneur culture because in the past few decades, corporate big box stores have eroded the place of the local entrepreneur.
At the same time, there's a related point that I wish I had made last night: For all that Kickstarter resists multinational corporate growth and big box store economics, I'd guess that most kickstarters with physical products outsource the manufacturing overseas. I really wanted to have a discussion of the place of Made in USA in the kickstarter conversation, but unfortunately didn't manage to squeeze it in. (We can have it here!) What is the responsibility of a kickstarter entrepreneur to help regrow American small-scale industry?
And then, as is typical for me, we ended with me asking a weird hypothetical that nobody was really willing to go along with. What would the internet look like today if 20 years ago Kickstarter had been around as a viable funding source? Would we still have Amazon and Google and the various other new tech giants in the same shape if instead of piles of speculative venture capital they'd been funded via some sort of crowdsourced funding?
I don't really know what answer I was looking for, but it wasn't "No, kickstarter wouldn't have worked back then, without the critical mass of internet-savvy people." I don't buy that, and anyway what's the point of a speculative hypothetical if you reject its premise and can't move past it. Boo, boring people. :P
Anyway, it was interesting and had me thinking about the shape our economy is going to take in the future, and the choices we will have to make to try to guide it where we want it to go.
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Since I haven't written about it in a year, a brief resume. Immodest Proposals began as a small salon in
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Last night we talked about Kickstarter culture. Anthony Conto, a game designer about to launch a kickstarter, demoed his game and then served as panelist and focal point for a discussion about the way kickstarter has changed the way projects are funded and managed and operated.
We opened the conversation by asking what about this particular moment in the internet's young history made it ripe for the rise of crowdfunding, and a variety of factors were discussed and weighed: The changes in the legal system to make it easier for small investors, the rise at last of microtransactions in the form of app purchases and music downloads, the omnipresent always-on culture fostered by smartphones and wifi, the replacement of the boomer generation with a more internet savvy generation of consumers, new technologies and techniques making prototype and small batch manufacturing more available, faster distribution via UPS/Fedex... All of those things are involved. Someone also brought up a theory of the Adoption Curve of internet tech that argued that it just took time and critical mass for an idea that had a significantly earlier genesis to finally reach the cultural mainstream, that others had tried Kickstarter-like ideas earlier without success.
And then we started moving to the specifics of the change effected, and what it meant for creators and people wanting to start businesses. How kickstarter decoupled them from the venture capital scene, allowed them to attempt small batch projects.
Still, I raised some objection. All this talk of 'kickstarter culture' has a tendency to reject the value of past DIY cultures. I cited Trivial Pursuit and Monopoly as board games developed as small batch regional projects before they struck corporate distribution deals. I was shouted down in the moment for speaking from anecdata, and I wasn't invested enough in the point to really press it, but in the light of morning and with esprit d'escalier and nobody to gainsay me, I will mount a defense of my point.
In the past, there were plenty of people with kickstarter-like projects. They'd borrow a few thousand bucks from a friend or save up from their other job, hire out a small local print shop, and try to convince a local store to carry their product. If things worked out, if they managed to get local word of mouth, maybe they would look to expand. Maybe they'd look for partners to help them expand. This was at the core of American entrepreneurial culture.
And yes, most of these projects never hit it big. Most of these projects never made it past that first stage. Even most of the successes were only regional successes. But that's business. Even if kickstarter lets entrepreneurs today fund their first batch, there's no guarantee that any of them will continue to sell after that initial batch, either. (And since often kickstarters offer their product essentially as a discounted pre-sale, they're potentially cannibalizing future full-price sales for the seed money for that first print run. )
The real point is that we don't have the small local print shops and small local distribution venues that we used to have. Kickstarter fills a void in our entrepreneur culture because in the past few decades, corporate big box stores have eroded the place of the local entrepreneur.
At the same time, there's a related point that I wish I had made last night: For all that Kickstarter resists multinational corporate growth and big box store economics, I'd guess that most kickstarters with physical products outsource the manufacturing overseas. I really wanted to have a discussion of the place of Made in USA in the kickstarter conversation, but unfortunately didn't manage to squeeze it in. (We can have it here!) What is the responsibility of a kickstarter entrepreneur to help regrow American small-scale industry?
And then, as is typical for me, we ended with me asking a weird hypothetical that nobody was really willing to go along with. What would the internet look like today if 20 years ago Kickstarter had been around as a viable funding source? Would we still have Amazon and Google and the various other new tech giants in the same shape if instead of piles of speculative venture capital they'd been funded via some sort of crowdsourced funding?
I don't really know what answer I was looking for, but it wasn't "No, kickstarter wouldn't have worked back then, without the critical mass of internet-savvy people." I don't buy that, and anyway what's the point of a speculative hypothetical if you reject its premise and can't move past it. Boo, boring people. :P
Anyway, it was interesting and had me thinking about the shape our economy is going to take in the future, and the choices we will have to make to try to guide it where we want it to go.