A Word About Crowdfunding


#1

So, back in April of this year, I backed an Indiegogo campaign for the new model of the bed fan. The guy raised 780% of his goal on Indiegogo and even more on KickStarter.

It was supposed to ship in June. Last update about the project was in July (“polishing the molds”). We’re now heading into September and no one has heard from him. Multiple people have tried to email him and he’s not responding. I finally contacted Indiegogo yesterday asking how they’re going to hold him accountable. I got a form letter saying they “notified him to respond to backers.” That’s it!

I bet we’ll still be waiting for the molds to be polished in 2020 while he’s off in the Bahamas kicking back in his hammock. (I hope his air conditioner breaks!)

First and last time I back a crowdfunded project :disappointed:


#2

Hi there
In my university I did a large paper for “crowdfunding”. Don’t lose your hope. The “bad” thing about it is that people ask for money are people like us usually, so as hard as it is to trust a stranger that’s how difficult is to give your money for a project like that one. You should look for people that have a strong name in the field of the thing they are raising money for. That;s the most crucial step you should take.
In bottom line it is easy to get scammed but if you do your research right something good will come out of it. :slight_smile:
Much love, Aggelosmariospa


#3

I know there are some great projects out there.

The company behind this campaign has actually been in business many years. The most frustrating things to me are:

  1. No one is responding to backers.
  2. There’s no explanation for the long delay, and no new arrival date.
  3. Indiegogo isn’t doing anything at all.

I figured the site hosting the project would hold campaigners more accountable. It’s just a bit frustrating.


#4

My advice…just invest in a diversified mutual fund and forget all about it. [I have written extensively on crowdfunding, it is a platform that is built on trust and trust alone. But that’s the beauty of it. Which is why crowdfunding investments are small - you won’t be financially devastated if you lose your investment in a particular campaign.]


#5

How can you tell? :house_with_garden:


#6

Good point! I’ve almost bought from them before directly from the website, but when I went to do so in April, the new model was in production and the only way to get one was to back the project (at a 16% discount off future retail) or wait until it was released.

I first heard about the company when they appeared on Shark Tank. My real beef is with Indiegogo and their uncaring customer support. “Just give them some time” was all I got.

I don’t think it’s unreasonable to ask how much time I’m supposed to give them before Indiegogo does something (but they brushed that question off.)