Originally posted by jo-erlend
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This happens with normal people and small sums of money so that even if they lose that it's no big loss. It's akin to very small scale high risk investment with profit in kind.
2) Sure, crowdfunding is nice and can be used to get things started. But if you're not even trying to get customers, but only hoping for donations, then you don't have any hope of attracting any long-term investors.
For a successful crowdfunding you need to convince people to give you money, it's not just sitting around and waiting for money to come in like Canonical did. Again it has similarities to convincing investors, but what normal people want is usually a product, while an investor wants cash.
For bigger projects you need to put down smallish steps where at the end of each you have some product to give to your "funders", for example.
Which is why it can make sense in situations where there is 0 chance the project could make money to pay back investors.
3) Not all investors seek massive returns and thousands of billions are very long-term investments. Personally, most important investment is one I expect to hold for at least thirty years, at ~2-3% per year, while the stock is expected to only grow very slowly. That's a very safe bet. But I also have high-risk investments. It's fun, it's ideas I believe in and it might be profitable.
I really believe that Ubuntu Personal would've been a very viable business if they had a business model for it. It wouldn't be for everyone, but that's fine, because you don't need a large number of customers in order to be profitable. Again, it is not necessary for a business to make billions of dollars. Small economies can be good economies. Small businesses can be very good businesses.
And be verbose, other companies that live off Linux like RedHat, SUSE, Canonical, and other minor ones are all ears.
But one of the most important rules of business, is you must have a plan to make money. If your business plan is hoping for donations, then I don't think the banks will be very happy to help you get your family settled into a new home.
If your argument is that nobody in their right minds would want to pay $10usd annually for an OS for their phone and desktop, then I wonder why you're donating.
Canonical already did the same, with CLA and with Mir and so on, and you see how well it turned out.
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