Kickstarter is exciting new territory for the Internet. Now, if you have a pet project and a good pitch, you stand a chance of getting the funding you need to make your dream happen. Kickstarter also gives everyone the opportunity to help make these potentially new and exciting projects a reality, by giving you the ability to directly fund them: no strings attached.
But this crowd-funding system is not perfect. In fact, there are a number of concerns you should have in mind before you choose to back a project. Here are a handful of caveats to keep you safe:
Becoming a backer is not an investment: By backing a project, you are giving money to the project creator in exchange for the rewards listed in your pricing bracket. Because you don’t hold stock in the project in the typical sense of the word, your say about the direction of the project is almost nonexistent. While some project creators like to take backer feedback, ultimately you’ve given them the freedom to do what they want with your money, for better or worse.
Your refund is a “maybe”: Kickstarter is not obligated to refund you, should the project fail. All of that contractual responsibility falls on the project creator. So, when a project starts to slip, this can prove to be messy.
Know the costs: If a large-scale game project is asking for $25,000 or if backer rewards seem confusing, you should probably be suspicious. While Kickstarter projects are pretty well-vetted, that doesn’t necessarily mean that every project is feasible. Know the risks and stay informed before you put your money down.