>A big problem with crowdfunding is that many backers don't seem to understand the risk they are taking on.
That's because Kickstarter advertises the potential benefits and buries the risks.
If you read their KS page [1] it states: "Pledge $185 or more: COOLEST COOLER: Get your very own COOLEST, complete with blender, a waterproof Bluetooth speaker, USB Charger and all the other awesome features. You will be saving $115 off of the retail price of $299. (Just watch people flock to your gathering when you're the only one with a powered blender and thumping music!). You'll also get the COOLEST Drink Guide and all our updates. (add $15 for shipping)".
Now, you and I know that means "maybe", but does the average backer? I don't think so - honest. It says, right there, in black and white, if I pay $185 I get XYZ. Sure, it says maybe not in the contract, but who reads those? Don't forget home loans in mid-2000. In that case, you heard "HOMES FOR $899 A MONTH!" not so much about the adjustable rate and the potential to collapse your living situation.
It's silly how people view this situation here. If one company has the resources to manipulate the market, they will do so outside the talent pool. Apple could buy up most patents and restrict anybody from using them. THEN, you would see the problem. But when it's human resource, you want the free market to be free.
The 'value' can be as simple as a payout. If I could go back, I'd love to invest in Snapchat. I don't think Snapchat will ever have a strong revenue stream but that doesn't matter to me - what matters to me is the buyout.
Hell, I invest in options often. There's no real value to me... only a potential investment payout.
I think it's the same with most investors of technology.