Magazine Sours On Crowdfunding

The PopSlate 2 phone case million dollar crowdfunded startup is the latest big bust for Indiegogo as the crowdfunder has notified backers that it is filing bankruptcy.

There will be no delivery of promised product and no backer refunds of donations.

The reason over 12,000 backers won’t see anything is apparently “the cases would not be able to work with iPhones as intended without a thorough and expensive reworking of the entire project.”

Popular Mechanics says never crowdfund because: “you are not an “investor” because you get no payout should the product be a wild success, and you aren’t a “customer” because you won’t necessarily get anything in return for what you pay if it fails.”
http://www.popularmechanics.com/technology/gadgets/a25741/popslate-crowdfunding-fail-no-refunds/

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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, balance, Broker dealers, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Funding Portals, Investments, Jobs, Legislative Intent, review, SEC, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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