A sad tale of crowdfunding: The projects that left backers hanging

kickstarter-wall-paintMELLISA TOLENTINO | MARCH 13TH | SiliconAngle – These days, crowdfunding projects are a dime a dozen. And the sites that power these projects seem countless. The concept is simple enough, and with a range of pledge donations from $100 to $10,000, anyone can become a venture capitalist. The approach has been highly successful for some, like Pebble. But then, some projects have tanked. Worse still, some projects aren’t even real.

News surfaced this week that Kickstarter project Soap, a home automation router, is being accused of scamming backers. Word came from Reddit user Saironek, who laid out his evidence against Soap and its creators. Saironek stated that the creators didn’t look like real hardware or software developers; Soap’s social media accounts have more followers than backers on Kickstarter, with a significant number of those being fake accounts; and that the money Soap is asking for isn’t enough to make the product.

Saironek may have raised valid concerns, but he also may have a hidden agenda. Saironek is creating something similar to Soap, and is now being questioned as merely discrediting the competitor. According to Soap’s Brandon Jones, Saironek’s real identity is Jan Cermak from the Czech Republic, and has been harassing Sage Technologies, one of Soap’s suppliers, to give evidence as to whether or not Soap is a legitimate product.

Though Soap’s people have spoken about the incident, some still doubt the credibility of the project. Which raises the larger question, how reliable are crowdfunding projects?

A few weeks back, SiliconANGLE Founding Editor Mark ‘Rizzn’ Hopkins posted a rant on Facebook on the matter, stating that he has invested over $550 on projects in the past three years, but received none of the projects.

“At what point do we start blaming Kickstarter for supporting what amounts to fraud?” questions Hopkins. “Hundreds of thousands (millions?) of dollars have been collected as pre-orders for a variety of projects that were never delivered.”

Sadly, there have been other incidents of projects being launched on crowdfunding sites that left backers hanging.

read more: http://siliconangle.com/blog/2014/03/13/a-sad-tale-of-crowdfunding-the-projects-that-left-backers-hanging/?angle=silicon


This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

ForbesHow This Millennial Built A 7-Figure Business Using Equity CrowdfundingForbesWhen he asked them to help fund his company's crowdfunding campaign, they delivered—exceeding his initial goal fourfold and ranking it one of the fastest and most successfully funded companies on R [...]

WJLAHomeFundMe: Crowdfunding for a down payment | WJLAWJLABOISE, Idaho (KBOI) - You've likely heard of GoFundMe, the crowdfunding website, but have you heard of HomeFundMe?It's a website aimed at raising money for the down payment on a home.There is no repayment! This is a t [...]

Crowdfunding site Beam provides job training for homeless 'in a dignified way'CTV NewsHe is among the first to benefit from a high-tech project to use the internet and crowdfunding to help the homeless. The founder is an entrepreneur by the name of Alex Stephany who created [...]

Oval Money surpasses £500000 crowdfunding target in 72 hoursFinextraOval Money's latest fundraising campaign was conducted on crowdfunding platform Crowdcube. The £500,000 target represented nine percent of the company's equity, but the overfunding is increasing the equity t [...]

Entrepreneur3 Crowdfunding Tips Every Company Forgets From a Brand That Raised $800000 and Got AcquiredEntrepreneurCrowdfunding takes a lot of planning, whether you're gearing up for a launch, a ship date or thinking about the next source of funding you'll pursue. But it [...]

ForbesVeteran 'Dota 2' Caster TobiWan Launches Crypto Crowdfunding ...ForbesVeteran Dota 2 caster Toby "TobiWan" Dawson, who has casted the final at the biggest esports event ever, is set to launch a new cryptocurrency for a platform that will allow content creator [...]

Entrepreneur12 Key Strategies to a Successful Crowdfunding CampaignEntrepreneurCrowdfunding has witnessed some spectacular fails. Don't let your project be one of them. I've Raised Close to $2 Million in Crowdfunding Campaigns -- Here Are My · Next Article · I've Raised [...]

The GuardianWorboys' victims launch crowdfunding appeal against releaseThe GuardianThe women are aiming to raise £10,000 to pay for a judicial review that would initially force the Parole Board to reveal its reasons for releasing the 60-year-old, who has served 10 years in jail. [...]

EntrepreneurLive at CES: Indiegogo CEO Predicts What's Next for CrowdfundingEntrepreneurAt CES, hundreds of companies of varying sizes and stages can attribute crowdfunding platforms to their funding, product design and success. One of those being Indiegogo. Founded in 2007, the [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

CrowdFund Beat Media

2018 Fintech World Conference & Workshop, Announcement:Game Changer” Fintech World Media, PR & Marketing Group Proudly Presents: lnkd.in/gqdCrTr

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |