Crowd-Sourcing for Business Ownership

I’ve heard of crowd-sourcing for content, but this is more like crowd-founding. nvohk will be a surf clothing company if and when 5,000 “members” chip in 50 USD to get the ball rolling. The membership will be capped at 40,000 and 35% of profits will be distributed back to the members as some sort of credit.

Think of it as open-source business development.

On the one hand it seems like a great new way to start up a business. On the other hand it seems like a lame way to excuse yourself from actually having to start a business. It remains to be seen how responsibly and diligently 40,000 low-investment members can steer a clothing company. My suspicion is that, when things get difficult, the “crowd” won’t be able to respond effectively and the project will fail.

But I do wish them luck.

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