Kickstarter.com was founded in 2009 as “a new way to fund and follow creativity” by allowing creative people to collect funding for projects through “crowdfunding.”
Crowdfunding is a new type of investing, which allows the general public to choose projects to support with the investment amount of their choosing. Unlike other types of investing, neither the investors nor Kickstarter has ownership over the project once it is completed.
In order to post a project for funding on Kickstarter, you must apply and follow their project guidelines. Once approved, you must provide a deadline and a minimum target for funding.
If the minimum target of funding that you are trying to collect is not reached by the deadline, then no funds will be collected. The funds will be returned to the donors.
Kickstarter takes 5% of the funds raised, while Amazon Payments – who processes the funds for Kickstarter – takes another 3-5%.
Those posting projects on Kickstarter should know that they are legally liable to their investors if they take the money and fail to deliver on their promises.
4 ‘Kickstarter’ Reviews
I am still waiting for projects such as Ars Imago's Lab Box to show any demonstrable sign of sincerity or evidence of production a year after funding. I know that the concept is to back business development as opposed to buying something, but as an investor one does at least want to see that the Project owners do what they promised they would do with the money! Kickstarter may have started out as a platform for honest people to start a business years ago I'm afraid that it appears to have evolved into a get rich scheme for scammers who promise a lot, cash in money from naive Backers and then do nothing. There is no accountability to the Backers and Kickstarter does not take any responsibiity in vetting the Project Starters or resolving disputes. There isn't even a review system to warn off unsuspecting good intentioned investors. Open to too much abuse and easy money for the dishonest!!
Kick starter and I backpack. Can you smell rip off
STAY AWAY FROM THEM. THEY ARE SHYSTERS!!! They will take the money out of your account for a project and when the project refuses to fulfill their obligations, Kickstarter will not refund your money. Kickstarter took the money, they should refund it!