Kickstarter, Inc. recently changed its name to Kickstarter PBC.
The seemingly simple modification actually signals an important development that has critical imapact not just for the company but also for the public as well. By doing so, Kickstarter has become a public benefit corporation (PBC), legally bound to ensure a positive impact on society in its operations.
The move diverges from the path taken by many successful tech startups, which is to go public and earn millions like the way Facebook, for instance, cashed in on its popularity.
The idea behind the PBC legal change is to ensure that money would never corrupt the company's mission in the manner by which creative projects are funded in the Kickstarter platform, Yancey Strickler and Perry Chen, co-founders of Kickstarter, told the New York Times.
Going public or selling would "push the company to make choices that we don't think are in the best interest of the company," the pair added. Kickstarter's mission is to "help bring creative projects to life," as stated in its website.
Kickstarter is emerging as an important player in the success of small tech businesses and the way creative ideas are translated into actual products. The platform allows people to raise money in order to fund their projects within the crowdsourcing model. With the transition to being a PBC company, it now guarantees that the projects are shielded from the influence of investors and shareholders, according to The Verge.
Simply put, the company's decisions will be dictated by public benefit rather than profit.
