Can Kickstarter support big projects?

[Swampy]

A chip startup wants to raise at least $750,000 to promote its high-powered chips. The technology is apparently proven, because these are being sold to the military for a high price, but, at $10,000 a board, it's too expensive for the consumer, so more funding is needed.

The VC's aren't willing to fund it, because they prefer cheap apps to expensive hardware, so the startup is turning to Kickstarter. I'm skeptical about Kickstarter being able to raise this kind of money, but this is just starting.

Any thoughts on that?

[mcnoch]

The IT crowd is still donating very actively, but it is a challenge, especially as there is no direct return for the backers as in other projects.

[Swampy]

There is a ton of money waiting to be invested, but the VC's aren't willing to make the long-term investments for long-term gains.

[mcnoch]

Due to the credit-crunch the VC-model is no longer working. The VCs gave the first and second wave finance, the big business banks the second and third. The money was made in wave three or the IPO. As the business banks no longer can invest in the same way there is no money to be made by anyone in these still risky businesses, especially in hardware where SEA is is ruling the world. For these guys it is okay to make is open source, it is just a step stone in the necessary development curve of this technology.