philip lelyveld The world of entertainment technology

Crowdfunders of the Maker of Oculus Rift Denounce a Facebook Buyout

[Philip Lelyveld comment: could this deal change the social compact between KickStarter donors and the groups they donate to?  Will they demand more of the downstream success?]

“I supported this because it’s something that I’ve wanted to see become a reality since I read my first William Gibson novel,” one Oculus donor wrote on Kickstarter. “Now I find out that I might as well have handed my money right to Facebook and I feel a little sick.”

The extraordinary reaction of early Oculus VR backers and fans to news of the Facebook deal illustrates the tricky relationship between companies raising money on Kickstarter and the people who donate to them.

The hope, among donors, is that they can help the interesting ideas of these companies get off the ground. Their donations amount to seed funding — enough money to build a prototype, perhaps. And assuming they understand what they’re doing, the donors have no expectations of gaining equity in the young company.

With that largess comes a sense of community and expectations that it will deliver — or at least try really hard — on what it has promised. But when the little company hits a big payday, as Oculus VR announced on Tuesday, it is strikingly clear that community has very little say in its decision-making.

See the full story here: http://www.nytimes.com/2014/03/27/technology/crowdfunders-of-the-maker-of-oculus-rift-denounce-a-facebook-buyout.html?_r=0