I don't think that's stupid. Kickstarter contributions are investments, they just don't have financial payoffs. The payoff should be that, if successful, a certain desirable piece of technology or art is created. If a company shifts focus away from the aims and goals they used to attract Kickstarter funding, then they have essentially acted dishonestly. There is no legal recourse, so the best thing to do is complain and make them look bad. The behaviour you think of as stupid is really the only way contributors can put pressure on Kickstarter companies to act in good faith.
In the financial sense of the term, no, a Kickstarter contribution is not an investment. And that's the only sense of the term that matters here.
Sure, you can hope that the recipient of your contribution will use it in the way you want, and will hold the same values and plan for the company that you do, but in reality, that's an entirely unreasonable expectation to have.
The thing is, though... I don't see this particular example as the Oculus founders acting in bad faith. They made a business decision that made sense for them and their product. Sure, they get a big payday, but I bet they also believe that this is the great (maybe even best) way to make their product successful. The fact that you or I or any of the contributors might disagree is, well, irrelevant.
Personally, I think a lot of people are making a big deal over something that... isn't. There's a lot of hate for Facebook around, some of it justified, some not. The knee-jerk reaction of a FB acquisition being bad is getting quite tiring to me. Why not wait and see how it goes? FB at least seems to have a better track record of successful acquisitions that don't destroy the acquiree than Google does.
No, the financial sense of the word "investment" isn't the only meaning that matters here, because here we're discussing the behaviour and attitudes of contributors. Its unreasonable for anyone to expect them to ignore their emotional investment and only think of things financially. If they did that, they wouldn't have contributed in the first place, and Oculus would not have gone anywhere.
Oculus benefited greatly from selling itself as the future of VR gaming. That was the image they cultivated, that is why their Kickstarter was so successful. That is why people contributed. The Facebook deal most likely means a big shift of focus to social VR. There's a big difference between hoping a company will share your personal values when it gets successful, and being sold a particular plan which is then abandoned in favour of a big payoff.
Point here is -- if you want a stake, buy a stake. If you want a steak, you get to sigh if the restaurant gets turned into a Hooters.
Me, I think Kickstarter is to fault for being sold as a tool for contributors. You go to kickstarter.com, it's like a shopping mall of the future. For what Kickstarter say they are, they should be a plugin that companies get to put on their website or something, not something that gets marketed to consumers.
No, that's not the point. The point is, when a company gets funding from Kickstarter, they are selling something more than just the Kickstarter rewards. They are selling an intangible good - a vision of the future. If that company fails to try to deliver that future, then it's a rip-off. Your attitude is like I tell you "hey I bought these trainers that were advertised as hard wearing but they fell apart after a week" and you reply "well you didn't buy a stake in the trainer company, so you've got no right to complain".
Kickstarter is not a store. Kickstarter is very weird, actually.
Kickstarter is not investment. I've never invested money in a company, but I've invested labor in exchange for shares; I was, thus, a stakeholder, and had a say in a number of decisions the company made.
If I buy a product off a store, a pair of sneakers, and they turn out to be shitty and fall to pieces in a week, I'm entitled to my money back or a working pair of sneakers. However, when you fund through Kickstarter something that says "Oh Hai Future Shoes", you're not buying sneakers.
If I invest in a company and they turn out to be using child labor, I can try and wield whatever powers I have in my shares to stop that practice. I can also divest and shame. However, when you fund "Oh Hai Future Shoes" through Kickstarter, you're not investing. You're not buying a vision of the future of shoes. At best, you can expect your rewards (usually a prototype of said sneakers) to be delivered.
But if they sell out to Nike shortly thereafter? And you thought you had an emotional connection?
This is why I kind of fault Kickstarter. It's just too weird a model; it allows fine, smart people like yourself to make unwarranted leaps of logic so that money flows that otherwise might not happen are made common and large.
At its core, understood as FAQs explain -- but not as the website in general is structured -- Kickstarter is a tool for business. Why does it have a shopping mall-like website? Why isn't it just an extension of tip jar tools for webmasters?
(I'm reminded of the Alec Baldwin movie with Jack Lemmon where he's screaming through a pep talk -- "TO GET THEM TO SIGN ON THE LINE WHICH IS DOTTED!!". This is what Kickstarter does.)
Bad analogy. You're describing a case of false advertising (or at best a product defect), which should be remedied by either a product replacement or refund, or at worst a trip to small-claims court.
You haven't really given me a reason as to why false advertising is a bad analogy. I think this is quite similar to a case of false advertising or a product defect. Here the product is the service of Oculus developing VR technology for gaming applications. Contributors feel they were mislead and I am sure many of them would want a refund if it was offered.
When you contribute -- note contribute, but invest -- to a Kickstarter campaign, you're buying into the perk you get and pretty much nothing else.
I can understand being upset that the company didn't do what you hoped, but considering it an investment is a bit of an overestimation.