Kickstarter is Now a Public Benefit Corporation

22nd September, 0 replies

Kickstarter is now officially a Public Benefit Corporation. This means that it is not simply a for-profit company, but is also obligated to consider the impact on society that its decisions will have.

"Until recently, the idea of a for-profit company pursuing social good at the expense of shareholder value had no clear protection under U.S. corporate law, and certainly no mandate," said Kickstarter in a blog post. "Companies that believe there are more important goals than maximizing shareholder value have been at odds with the expectation that for-profit companies must exist ultimately for profit above all."

At the moment only .01% of all US businesses are Benefit Corporations, however Kickstarter believes that will change in the coming years as more and more people reject the idea that a company's sole purpose should be to generate a profit, instead of trying to benefit society as a whole.

"There was not a single dissenting vote by a Kickstarter shareholder to re-incorporate as a Benefit Corporation," added the blog post. "We’re once again grateful for the support and partnership we’ve had from this group of friends, investors, and current and former team members. Thank you all!"

Kickstarter launched in April 2009 and has become the leading crowdfunding site. Kickstarter campaigns as a whole have now raised more than $1.5 billion in funding from more than 7.8 million backers.

Source:

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