Kickstarter Backers Vent Over Facebook’s Oculus Buy

Time
Wednesday, March 26, 2014

When Carlos Schulte contributed $300 on Kickstarter to Oculus VR, a small but ambitious virtual reality gaming startup, he never expected it to sell out to Facebook for $2 billion. The $300 contribution bought him an early version of the company's gaming platform, but no equity in the company. The passionate online response against the Facebook purchase illustrates how the ethos of crowdfunding can clash with the corporate world. Some contributors fear the purchase will steer the company away from the gamer-friendly vision they had contributed to. Others argue that the sale is the most egregious example yet of crowdfunding's one-sidedness. Two venture capital firms which made early equity investments in the project received a 2,000% return. At that multiple, Mr. Schulte's contribution would have been worth $6000 today.