Kickstarter’s New Charter – No IPO?

Does the re-incorporation of Kickstarter as a public benefit corporation focusing on liberal causes telegraph to the investing public that it will not ever go public?

Kickstarter announced that it has become a public benefit corporation. Under Delaware law, a public benefit corporation is a for-profit company that is “managed in a manner that balances the stockholders’ pecuniary interests, the best interests of those materially affected by the corporation’s conduct, and the public benefit identified in its certificate,” in this case to ” donate 5% of annual post-tax profits to arts education and organizations fighting inequality.”

Kickstarter’s focus will, among others, be “fighting to end prejudices against and increase opportunities for people of color, women, and LGBTQ individuals.”

While corporations fund charities and often set up foundations to do good works, most public companies do not so clearly and publicly align themselves with progressive causes which could turn off folks who don’t have the same political mind set.

While the new PBC charter is a reflection of its majority stockholders, is it also a message to their  investors that it will never become a public company?

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
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