The Risks of Crowdfunding

You saw a brilliant idea of a new gadget, a social initiative for kids in difficulty, or even a singer’s project of a new album and you decided to support it.

You have to be aware that your investments in crowdfunding projects are never free of risk and the decision to go for a project is yours, as recently observed in Kickstarter. The project “Canviz: Bring your Art to life” cancelled their project today as stated in their latest update from Canviz on Kickstarter,  although they successfully collected 109.988US$ over the expected 50.000US$ goal.

Protecting your investments

Kickstarted recently reinforced their project policy to insure owners are more serious about achieving their goals, although it seems not clear what a baker can expect (Kickstarter Updates Terms Of Use Section Related To Failed Projects).

There is always a risk of non-achievement which most of the bakers seem to forget. This isn’t an online shopping mall, but an opportunity for early adopters – and risk assumption is part of the game.

Having said this, an elegant trust-relationship has a flawless and frequent communication plan, and proposes a refund option for fair play. Personally, in this situations I request refund when the risk is too high and the idea has already become streamline over the time, but keep the faith for exceptional projects.

The choice in the hand of the baker

If Canviz does not refund per request or their beta program they offer sounds only like a time-winner towards it 284 investors, wouldn’t it be like hijacking their bakers?

A campaign shouldn’t only fund a market study (“great success, both in terms of finding that there’s interest and getting valuable feedback”) unless clearly stated. We would expect some tangible deliverables at the end, whereas the baker should make sure to read between the lines: a project starts from a smart dream or idea, yet realistic basis.

Would you be willing to invest without being and expert business man? Do you fully rely on crowdfunding? Please share your experience.

26/10/2914 update: it seem yet unclear if the project was cancelled before achieving the target date. Kickstarter collect funds upon funding and date achievements, therefore Canviz may not have collected any funds. Apologies for any fast assumption.

Photos above by Hans Sandkuhl – Digital Business Manager & Stylish Backpacker: Three Monkeys at Wat Arun – Temple of Dawn, Bangkok Thailand.

#kickstarter #canviz #crowdfunding