Is there a thin line between failure and fraud?
Some crowdfunding donors are starting to get angry that crowdfunders are taking their cash and not delivering on their promises.
However, Professor Ethan Mollick of the Wharton School found that:
- 9% of Kickstarter projects failed to deliver rewards;
- 8% of dollars pledged went to failed projects;
- 7% of backers failed to receive their chosen reward; and
- 65% of backers agreed or strongly agreed with the statement that “the reward was delivered on time.”
That’s pretty poor performance by any measure.
However, he concluded that “there does not seem to be a systematic problem associated with failure (or fraud) on Kickstarter.”
What do you think?