Slashdot Mirror
Ubuntu Edge Now Most-Backed Crowdfunding Campaign Ever
Volanin writes "The Ubuntu Edge has now passed the $10.2 million mark, thus making it the most pledged-to crowd-funder in history. While the Ubuntu Edge campaign is to be commended for reaching such a mammoth milestone as this, it can't quite claim ultimate victory yet, since it's just short of making one-third of its $32 million goal with a little less than a week left."
It also was very helpful in showing them the correct price-point for the phone. It is different from anything else out there, so knowing how to price it was going to be a challenge. Now that they know what the market is willing to pay, they can build around that.
Also, I would not be surprised if Shuttleworth makes up the difference at the last minute and goes forward anyway.
And that's why I don't participate in Indiegogo, but do many Kickstarters.
Kickstarter doesn't charge you UNLESS the project is funded. Indiegogo charges you first, then refunds you if it fails.
There are two problems with the charge/refund model - one, if you're doing a currency conversion, that means an instant 5-10% hit on your pledge - just due to currency exchange losses. Neverminding currency fluctuations that occur from when you pledge to when you get refunded (and no, you can't win).
The second problem is well, you tie up money. Indiegogo makes a profit based on simply holding the money (and this isn't including the Indiegogo fees). I suppose it makes Indiegogo brilliant business people - they have this huge pool of cash they can pretty much invest with - all they need is enough cash to cover the payouts of the day, but money's coming in for future payouts.
But it's the currency losses that get to me. Pledge under $100, and it's not a huge deal - it's probably $5-10 you lose. But I've done bigger pledges on Kickstarter, and you're looking at huge losses. $1000 pledge? Are you really willing to give up $100 or so in the currency exchange?