Kickstarter Undergoes Corporate Restructuring, No Longer Beholden To Shareholders

[kcarbotte]

Kickstarter Inc. has announced that it is no longer Kickstarter Inc. The company is no longer registered as a for-profit entity. Kickstarter has joined a small list of American companies registered as Public Benefit Companies.

Kickstarter Undergoes Corporate Restructuring, No Longer Beholden To Shareholders : Read more

 

[targetdrone]

This shows 1 of 2 things, 1)Kickstarter is misleading the public about the tax status of donations or 2) Kickstarter hired a stupid Tax Attorney and Chief Financial Officer.

 

[stingstang]

Not sure why this company would even WANT shareholders. They must not have that much overhead, being strictly online and holding a few servers somewhere for the site... Amway's been debt free for...like ever. No need for shareholders means you're not as affected by market shifts. That's why they've been so successful for so many years.

 

[targetdrone]

Not sure why this company would even WANT shareholders. They must not have that much overhead, being strictly online and holding a few servers somewhere for the site... Amway's been debt free for...like ever. No need for shareholders means you're not as affected by market shifts. That's why they've been so successful for so many years.

A long time ago a company would sell stock to raise capital to start or expand a business. Now already established companies go public so the founders can cash out and laugh all the way to the bank. Like Facebook and Alibaba.

 

[Fragulator]

"Kickstarter believes this will change in the coming years as more and more people reject the notion of "profit above all.""
Are you serious, when we take the profit out of anything, we know that there is no incentive to work, and therefor, as in Soviet Russia, and any other Communist country, and the pattern of failure is all around them.
Sharing the wealth sounds like a good idea, but doesn't work. Do these people, kickstarter, really think that business leaders who make the big bucks are going to all of a sudden get a conscience. And don't just say its the new businesses that will get on board, and in my opinion, will likely be the ones that fail.
Just more "social justice" BS, and nothing more.

 

[kcarbotte]

"Kickstarter believes this will change in the coming years as more and more people reject the notion of "profit above all.""
Are you serious, when we take the profit out of anything, we know that there is no incentive to work, and therefor, as in Soviet Russia, and any other Communist country, and the pattern of failure is all around them.
Sharing the wealth sounds like a good idea, but doesn't work. Do these people, kickstarter, really think that business leaders who make the big bucks are going to all of a sudden get a conscience. And don't just say its the new businesses that will get on board, and in my opinion, will likely be the ones that fail.
Just more "social justice" BS, and nothing more.

They aren't taking the profit out of anything.
Benefit companies just have to be conscious of thier impact on society, and do things to improve it.
5% is hardly taking all the profits, and Kickstarter chose that figure, it's not dictacted as a requirement for a PBC.


The current up and coming generation (generation z) seems to be a lot less interested in material things and wealth accumulation. They want more even distrobution of wealth. PBC's are one way to get there, and it makes sense to think that many companies will make the switch, especially those run by younger people.

You won't see many giant corporations switch over, as there would be massive dissent from the shareholders, but smaller companies and upstarts are a different story.

 

[whiteruski]

Long before my time, companies treated their employees well and were a positive influence in their community. Its such a weird thought nowadays that it is even weird writing it.

You read about this but I never thought that companies would be good players to society at scale. Maybe this trend will continue

 

[cats_Paw]

"PBCs are legally required to consider how their actions will impact society."
The company workers and staff and owners are society as well, so...