Everyone knows that startup financing is risky, especially crowdfunding.
Although Kickstarter is requiring companies to show a prototype, the risk of design, production and delivery is still high and many companies fail.
What you should know is that when your crowdfunded company goes into bankruptcy, as a donor, you will be last in line to receive any assets that may be left over after the company finishes paying off its secured creditors, many of whom may be insiders who lent money to the startup.
As a pre-buyer (the likely scenario), you will be an unsecured creditor and at the bottom of the list of payees.
https://www.slashgear.com/cst-01-watch-officially-dead-company-files-for-bankruptcy-02438606/
