Since then—less than a year—projects totalling nearly $50 million, about half raised at Kickstarter, have had creating firms go bankrupt, teeter on the edge of partial failure, or have seen a significant delay.
After Coolest pushed back the delivery date by months between its choice to upgrade some features and typical production delays, the company began shipping some units in July, even as workers went on strike at the factory originally contracted to make the blender s motor.
The company s founder said it needed the infusion of cash from Amazon sales, and it would need $15 million to complete production for units owed.
And Kickstarter and Indiegogo have removed campaigns that don't pass the smell test, reported by site visitors or popping up in the radar of internal teams devoted to making sure projects don t violate guidelines.
But there s a distinct difference between dance, publishing, theater, comics—to name a few crowdfunding categories—and electronics and consumer products that require building a manufacturing operation to make real.
I ve launched four book projects and funded two one print and one ebook , and my profile at Kickstarter says I ve backed 76 campaigns there.