Tag Archives: middlemen

In defence of the middleman: There is more to intermediaries than fees

KICKSTARTER just won an Oscar. This year’s prize for best short documentary went to crowdfunded Inocente. More than 290 backers contributed $50,000 (£32,900) to pay for its post-production.

Around one in 10 of the films at last year’s Cannes film festival were crowdfunded, but it is far more than a great new way to raise financing for art projects. Jeff Lynn’s FSA-regulated Seedrs is aggregating seed capital for startups through its online platform, and Petridish lets scientific researchers bid for backers.

But there is also a danger in the crowdfunding goldrush. At least part of its attraction stems from a false dream: the elimination of middlemen. Continue reading

Leave a comment

Filed under Business, Economics, History, Human nature, Innovation