SirPrimalform: Well there is a bit of a notable difference from Kickstarter with this one: You're actually investing your money and get some kind of stake in the company.
Skystrider: Which is why I think it will fail miserably. The reason Kickstarter and the other websites work, is that people invest because they want to see the project get made, and the project creator retains complete ownership over their project and profits.
However, if dividends are split between backers, there will surely be little left for the project creator to build their company and future services, and people will be less willing to take risks with ambitious or unusual projects; we might as well buy shares with a publisher.
We already have European equivalents to Kickstarter (see
Rockethub, for instance), and we just need people to use those. Gambitious isn't it.
I don't agree, quirky seems to be doing just fine, it's all going to depend upon how things end up shaking out. I wouldn't recommend writing it off just yet.
Also, why would you assume that the dividends would be that costly? Presumably they'll be based upon the sales of the funded project and I doubt very much that it's going to be the norm to give away all the proceeds.
Of course it could well fail, but I think painting a bleak picture before anything's paid out let alone been funded is a bit silly.