One thing if think is going to cause ks to become heavily regulated is it is/will become a tool used by investors.
Let us say you are looking to make a game and need two million dollars. I agree to provide thre two million dollars contingent on you running a 500k kick starter. If it makes its goal or more great, my two million dollar investment just became worth a lot more. If it peters out at 325k, I kick in the last 175k (as part of my two million dollars) and the total funding is 2.325k. No matter what I own a piece of a company that has raised more than I invested. I suspect this ultimately becomes the norm as pre funded projects are required by their investors to use kick starter because it is free money and increases the likelyhood their investmrnt pays off. This will become the new reality of ks, as investors use it to secretly pad their success and tilt the odds in their favor.
Let us say you are looking to make a game and need two million dollars. I agree to provide thre two million dollars contingent on you running a 500k kick starter. If it makes its goal or more great, my two million dollar investment just became worth a lot more. If it peters out at 325k, I kick in the last 175k (as part of my two million dollars) and the total funding is 2.325k. No matter what I own a piece of a company that has raised more than I invested. I suspect this ultimately becomes the norm as pre funded projects are required by their investors to use kick starter because it is free money and increases the likelyhood their investmrnt pays off. This will become the new reality of ks, as investors use it to secretly pad their success and tilt the odds in their favor.