6 Kickstarter nightmares, and how to prevent them

Crowd funding has taken investing from the hands of the venture capitalists and given it to the masses. Here's how not to screw it up.

By Christopher Null, PC World |  IT Management, crowd funding, kickstarter

If you try your hardest and still don't hit your goal, then what can you do? Try again, preferably with a smaller goal. In its initial form, Nectar and Elixir's quirky bicycle seat clamp-meets-bottle opener raised only $1291 of its original $15,000 goal, an ambitious sum for a simple product. The designers tried again a few weeks later with a $2,500 goal...and successfully raised $4403. Check out The Kickstarter Handbook for an interview with that team for more details.

3. Problem: The cash didn't come through

This is a hopefully rare but troubling problem. Stacy Davidson was seeking $56,000 for a video game project, and he hit his goal. But when Kickstarter ran the investors' credit cards, a few of the pledges turned out to be bogus, including one whopping $10,000 one. Kickstarter funds projects based on pledges, not actual cash collected, so that left Davidson with a significant shortfall to cover. But since completed Kickstarter campaigns can't be reopened or added to, Davidson ended up asking for private donations to help fill in the gap.

Lesson learned: Don't rest on your laurels just because you've hit your goal. Keep promoting your project until the time is up, no matter how far over goal you are.

4. Problem: You need more money

This problem is similar to the previous one: What if you met your goal and collected your money, but you burn through it too quickly or otherwise find out you need more funds to complete your project?

The most common solution here is the same as in Problem 3. Because you can't ask for more money from Kickstarter, you may turn to private funding sources to add to the coffers. Cheryl Furjanic and Will Sweeney did just that after raising $50,000 for a Greg Louganis documentary from Kickstarter. The initial investment was enough to get the film off the ground, but not enough to finish. The duo is using its Kickstarter page to point backers to additional fundraising opportunities, encouraging them to host fundraising parties and connect them with donors.

5. Problem: You're running late


Originally published on PC World |  Click here to read the original story.
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