Reward vs Equity of CrowdFunding? 9,522 Kickstarter backers on project that sells for $2 Billion to FaceBook

By Sydney Armani, CrowdFundBeat News,
Reward VS Equity CrowdFunding, As controversy heats up over Oculus $2 Billion sale to FaceBook.
I think I would have rather bought a few shares of Oculus rather than my now worthless $300 obsolete VR headset. What’s two billion dollars amongst 9,522 friends? I’d be happy with my $300 back.Oculus-Rift-Best-of-CES-600x377

I feel that people right now are just blinded by their hatred for Facebook, I mean… it hasn’t been 10 hours since the purchase and people are already ranting like if someone stole their car.
I know that they’ve done lot’s of bad things against their user’s privacy and that Mark might not the nicest person on the planet, but they are pumping lot’s of cash into the project, and at least this will only help the project to move faster to their goals.
I’m not saying to blindly follow Oculus decisions, i just think that you should not cry for milk that haven’t been spilled yet. I’m impressed; usually forms of media have to come into existence first before they are taken over and ruined by ad companies. This may be a new record.Says Wilson Bilkovich
VR is a part of the future. We are a community that believes this, but outside of this relatively small community the average person needs more convincing. It is of course something of a relief to see a company the size of Facebook willing to bet a decent amount of their play money on Oculus, and it will undoubtedly bring some attention to VR in the short term, but at what cost to the VR community, and Oculus’ mission?
The worry is two-fold. Oculus was very successful in rallying a community around a single piece of technology; they acted to focus VR enthusiasts on one “best path” forward. Oculus’ success to date is based in no small part around their community outreach and their position as an independent engine focused entirely on the improvement of the VR experience. As a small division of Facebook they forfeit that position. And that’s where the second and primary concern comes in.
Facebook is a huge company that does something very boring, very clever and slightly evil. It manages an enormous database that collects vast amounts of information from a population that is not yet savvy to the downsides of trading their private information for the right to use a service at no cost. To date Facebook has dabbled in a variety of hardware projects, and most of them have failed (who all owns a Facebook phone say yeah). It’s safe to say that hardware is not their focus or core competency.
At this point Facebook’s value is hyperinflated. They have value only because of the size of their user base, and while they have been king of the hill for almost a decade there is no law of the universe that prevents them from sharing the fate of Myspace or Friendster. Facebook seems aware of this, and it is doing a very smart thing by spending money while the money is there to spend in an attempt to secure its future position. Instagram, for example, was purchased primarily for its user base. There was nothing preventing Facebook from offering a competing service, but it was much smarter to absorb existing users than to try to attract them from a competitor. Everything Facebook buys is focused on driving customers to the mothership, whether or not they would explicitly prefer not to feed the Facebook machine with every intimate detail of their lives.
So one has to ask oneself, does Facebook want Oculus so that it can be a part of improving the VR experience, or does it simply see Oculus as a wearable information gathering device? A week ago Oculus was a very successful company about a year away from releasing its first consumer VR hardware. Now Oculus’ mission almost has to be to feed more user data into Facebook. It’s hard to imagine a product being released that is not hard-linked to a Facebook account. Now instead of just being a VR pioneer, Oculus users can become the first guinea pigs to share everything they do in their virtual worlds with the Facebook database.
Where you are looking, what you are looking at, who you are interacting with, when are you doing it. These are all more data points for Facebook. And of course there is nothing stopping them from putting targeted ads into a user’s field of vision. Enjoying that virtual world? You might enjoy it more with a Coke.
I’m not a fan of Facebook, but I still use the platform. Part of me is impressed that Facebook has managed to stay relevant for as long as it has, part of me is disgusted by what it does to do so. All of me is worried about what part Oculus has in this puzzle. I just can’t, as hard as I try, imagine anything good.

Tags: , , , , ,

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

VentureBeatAtaribox preorders and crowdfunding campaign open on December 14VentureBeatAtari will start taking preorders for its Ataribox game console starting December 14. The New York company will also start its crowdfunding campaign on Indiegogo. In an email blast, Atari said, “We a [...]

CurbedHistoric French chateau now has 13000 owners from crowdfundingCurbedThe Chateau de la Mothe-Chandeniers has had many owners since its construction in the 13th century. Now more so than ever. Over 13,000 strangers have recently banded together to save the fairytale home—which fea [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

Financial TimesCrowdfunding a mission to save capitalism from itselfFinancial TimesJeff Lynn is on a mission to save capitalism from itself at a time when millions feel locked out, and unable to foresee themselves better off than their parents. His answer: to democratise capital. That [...]

Comics BeatCrowdfunding Watch: Women to the RescueComics BeatAlas, another Monday begins. We're all here at our computers, staring at the screen until our eyeballs turn into raisins. I'll try to keep this week's crowdfunding round-up short and sweet. This week we'r [...]

WRAL Tech WireNew crowdfunding platform launches in North Carolina: LocalstakeNCWRAL Tech WireEasley points out that LocalstakeNC “is the first investment crowdfunding platform exclusively serving North Carolina. Startups and small businesses ranging from technology startups to retail [...]

Crowdfunding Campaign Underway To Establish Freediving Lanzarote DestinationDeeperBlue.comFreediving Champion Marianna Krupnitskaya has set up a crowdfunding page to help her set up an amazing freediving destination in the Canary Islands. The Freediving Lanzarote project will ultimate [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |