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0 pointsraxxorrax5y ago0 comments

I hear it has a bad reputation, but it isn't how I understand early access. I invested in a lot of early access stuff and some projects never saw release. That is the risk I took, because without this mechanism of giving people some financial advance, we wouldn't see as many games.

To me, people expecting too much from these investments seem to not have not understood the deal. It is small scale venture capital with no guarantees.

Creating art for such endeavors is not trivial and a lot of work. In case of computer games often more work than the coding. So it would have to be a pretty great idea if you can do with minimal effort in that department.

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indigochill5y ago

> It is small scale venture capital with no guarantees.

Kickstarter at least is not this, because if it was VC then backers would be buying equity, not product (often at close-to-retail price).

Fig is closer, since it is set up so that you can purchase shares in future revenue of the project (or just buy the product like Kickstarter), but IIRC you still don't get an ownership share, technically (I haven't looked into it closely since it's not my thing, so could be mistaken).

IMO either one is actually preferably for creators to a VC model since they get to maintain full ownership and their only (semi-) obligation is to deliver the product people pre-paid for.

Imagine if you could fund a tech startup by pre-selling product to customers instead of slicing up ownership of your company before it's even off the ground.

hangsi5y ago

> Imagine if you could fund a tech startup by pre-selling product to customers instead of slicing up ownership of your company before it's even off the ground.

Isn't that (not quite literally) the story of early SpaceX? Admittedly a pretty unusual case, but they did get large long term contracts to fund their development.

m4rtink5y ago

Yeah - SpaceX got their first NASA contract after their first successful Falcon 1 flight, with 3 failures before that. The Falcon 9 needed for that NASA contract for ISS resuply was still on the drawing board back then.

_curious_5y ago

"Imagine if you could fund a tech startup by pre-selling product to customers"

I know of a couple tech ventures that did exactly this...they (1) had established a minimum viable audience and then (2) queried their people for what they wanted and how much they would pay for it, and (3) developed technology that delivered above and beyond functionality at (4) less cost than people expected which resulted in (5) a lot of pre-orders that (6) they delivered on which (7) that was the genesis of how they raised $VC to scale rather quickly.

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