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Can you use kickstarter money to sponsor athletes without having shipped any product at all?
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So, there was this kickstarter project where there was a product that you could back for €149 - 249, they collected about a million while the requested amount was € 100.000. So far none of the backers received any product. But they are sponsoring a new pro team, they will place these pro athletes together in a house, hire a high level coach and also going to sponsor a club, etc. I was just wondering if this is allowed to use money for that you got through kickstarter but actually not having delivered any product at all.

Make no mistake, i like to see more money flowing into the sport i was just wondering to what level you can use money that is received through projects like this while you haven’t put any products to the backers at all. Aren’t there any rules or regulations for or is this just a risk to have to accept as a backer.

I mean you back a project to get a product and not to have your money be used for sponsoring athletes, housing for those athletes, etc. while you still haven’t received anything?

Jeroen

Owner at TRIPRO, The Netherlands
Last edited by: TRIPRO: Sep 26, 18 13:52
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Re: Can you use kickstarter money to sponsor athletes without havinf shipped any product at all? [TRIPRO] [ In reply to ]
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In general that is part of the problem with these sort of crowd funding programs - you have to put a low of trust in the leaders to deliver and there are no guarantees. What Kickstarter project was this btw?


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Last edited by: Thomas Gerlach: Sep 27, 18 1:50
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Re: Can you use kickstarter money to sponsor athletes without having shipped any product at all? [TRIPRO] [ In reply to ]
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How do you know they used the money they got trough Kickstarter? Often, startups will have investors backing them over a longer period and kickstarter is more or less an advertising campaign with a pre-order process.
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Re: Can you use kickstarter money to sponsor athletes without having shipped any product at all? [TRIPRO] [ In reply to ]
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Depends

What did the funding say?

Pay x and receive actual physical product y?

Yiu could link is to it
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Re: Can you use kickstarter money to sponsor athletes without having shipped any product at all? [TRIPRO] [ In reply to ]
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see LVL (BSX)... yes the money can be wasted
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Re: Can you use kickstarter money to sponsor athletes without having shipped any product at all? [TRIPRO] [ In reply to ]
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Called "misleiding" and can be persecuted. Will be difficultt as Kickstarter is under US law. Btw which project was it? Maybe interesting to start a discussion on the dutch triathlonforum?
Last edited by: Livio Livius: Sep 26, 18 23:35
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Re: Can you use kickstarter money to sponsor athletes without having shipped any product at all? [Livio Livius] [ In reply to ]
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That’s why i specificly didn’t mention the project. Its not that i have anything to do with the project or that i don’t want them to succeed, i really hope they do but i just found it odd.

You take peoples money to back you so you can develop your product, you get almost 10 times what you need and my business guess of action would be hire more qualified people to get your product to your backers before you are going to spend money on sponsorship at this scale. To me it doesn’t feel moral right. But, hey, it is just feeling others might feel different. And they say now they will ship the products in November so wait and see.

Thanks all

Jeroen

Owner at TRIPRO, The Netherlands
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Re: Can you use kickstarter money to sponsor athletes without having shipped any product at all? [Livio Livius] [ In reply to ]
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Looking at the pledge amounts and the location, I'm guessing it's related to an affordable Power Meter.

29 years and counting
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Re: Can you use kickstarter money to sponsor athletes without having shipped any product at all? [Jorgan] [ In reply to ]
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But 1 mio as funding is not much. As per site they will build (first round) 10.000 units. With approx 3.500 backers they need to sell another 2/3. Looking at R&D cost, pre-builds and testing, etc. you will easily burn cash min 0,5~1 mio euro easily. But lets see. Schedule date is postponed to November now. Also interesting to watch other (dutch) fora's on this topic.
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