Spectacular Crowdfunding Failures

What do mini-drones, gills for people, coolers with speakers, shoes with magnets and a home 3D printer have in common?

All were notorious crowdfunding failures.

Reasons for the failures included embezzlement, disappearance (with all the money it raised), delivery delays/failures,technological impossibility and non-functionality.

Most “donors” lost their money, although Indiegogo did require the gill company to return funds.

Since the web portals typically don’t enforce either their terms of service or a company’s promises, it will be up to the funders to litigate fraudulent crowdfunding entities.
http://www.msn.com/en-us/news/technology/top-five-crowdfunding-fails-from-james-bond-gadgets-to-anti-gravity-shoes/ar-AAlmMqd?li=AA4Zoy&ocid=spartanntp#page=1

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Broker dealers, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, drone, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, Uncategorized, unfair and deceptive practice, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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