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Kickstarter, a company widely associated with crowdfunding, has no plans of getting into the initial coin offering (ICO) business.
After the news that competitor Indiegogo would facilitate ICOs, Kickstarter spokesperson related the firm isn't looking to follow this lead.
"The answer is 100 percent a very firm no," said a company spokesperson said.
Since its launch in 2009, Kickstarter has been used to successfully distribute $3.04 billion to creative projects.
It initially crossed the billion-dollar mark in 2014.
Total ICO funding so far is at $3.8 billion.
Kickstarter did not specify its reasons but its charter offered five planks that gave more information.
• Kickstarter’s mission is to help bring creative projects to life
• It's operations will reflect its values
• Kickstarter supports a more creative and equitable world
• It is committed to the arts
• Kickstarter is committed to fighting inequality
Reincorporated as Public Benefit Corporation
In 2015, the company insulated itself from pressure to make profits its sole priority by reincorporating as a public benefit corporation (PBC).
Yancey Strickler, founder and CEO of Kickstarter, wrote on the blog:
“Until recently, the idea of a for-profit company pursuing social good at the expense of shareholder value had no clear protection under U.S. corporate law, and certainly no mandate.
“Companies that believe there are more important goals than maximizing shareholder value have been at odds with the expectation that for-profit companies must exist ultimately for profit above all.
“Benefit Corporations are different.
“Benefit Corporations are for-profit companies that are obligated to consider the impact of their decisions on society, not only shareholders.
“Radically, positive impact on society becomes part of a Benefit Corporation’s legally defined goals.”
PBCs are a relatively new legal entity that guards companies that want to pursue a social mission and fulfill their fiduciary responsibility to shareholders.
This way, shareholders in Kickstarter earn an income stream rather than pining for a giant return on a big exit down the road.
The company has long committed to remaining private.
One of its three co-founders has compared a share in the company to owning the rights to a popular song.
But despite any similarities, the company said this structure protects it from leveraging its brand for returns.
"Not something we looked into or will look into," the spokesperson said.