The dark side of crowdfunding

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  • Published on Apr 16, 2019
  • Crowdfunding gives gadget makers the power to launch their own companies, but sometimes their dream dies not long after launch. In this episode of In the Making, reporter Ashley Carman looks at how crowdfunding platforms Kickstarter and Indiegogo are changing their business to prevent creators from never shipping their product.
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Comments • 391

  • The Verge
    The Verge  5 months ago +200

    Have you ever backed a crowdfunded gadget, and did you receive it?

    • Kittanan Jamnongrit
      Kittanan Jamnongrit Month ago

      3 of them shipped, 1 is out right fraud.

    • descent pornstar
      descent pornstar 2 months ago

      but now I have got solution for this problem in my mind thanks Verge

    • Nonaide
      Nonaide 2 months ago

      I've just backed 2 that I would consider "gadgets" and I'm sitting at 50%. I love my Bandicoot head lamp, though!!

  • Badoo Renc
    Badoo Renc 10 days ago

    🥰

  • luke _ p
    luke _ p 16 days ago

    Hello

  • AlHashashinMC
    AlHashashinMC Month ago

    On average, the projects I’ve backed took 2-3 years to get to me (if they ever came). Sorry Kickstarter, but I never received the memo that said it was an ‘investment’ with risks involved.

  • Knarf Nil
    Knarf Nil 2 months ago

    As one of the people interviewed in this episode says, risk is inherent with investing. That being said, the producer has the responsibility of making a fair effort in realising the product, while the marketplace (i.e. Kickstarter and the like) should makes the ToS more transparent, both for the consumer's benefit and shielding the platform company itself from unwarranted legal liabilities.

  • MOHD SABBIR KHAN
    MOHD SABBIR KHAN 2 months ago

    Good

  • David Dorman
    David Dorman 2 months ago

    YES PLEXIDRONE!!!!!!!!!!!!!

  • Spastinaut
    Spastinaut 2 months ago

    who's still waiting for their shiftwear shoes?

  • emued
    emued 2 months ago +1

    We made it to 300 dis likes yaya

  • Nicolas daniel laskosky mota

    i could listen to that presentor talk my entire life.

  • ; p
    ; p 2 months ago +4

    I always thought that people were donating the money... Without getting a return.

  • M J
    M J 2 months ago

    I have backed one in the past and received the item.

  • Bob Wow
    Bob Wow 2 months ago

    you take a risk you learn from a risk. it isn't their problem! don't back if you can't accept it may not be shipped. I Hate how entitled people can be 🙄 you took the risk stand up and accept it!

  • Yh Ong
    Yh Ong 2 months ago +23

    Remember the time, they tried to crowd fund a bottle that refills itself from air humidity or that underwater breathing apparatus without a scuba tank. 🤣🤣. I called it scam years ago. And true enough, the founders just left and with hefty spare change. Think before you give away your money.

  • Daniel Detweiler
    Daniel Detweiler 2 months ago +3

    bet you could knock out a workable design in less than a month if you were in shenzen, probally cheaper too

  • Givzz Productions
    Givzz Productions 2 months ago

    entrepreneurs are ultimately responsible to be aware of all the steps needed to successfully manufacture and ship a product. Crowdfunding sites should reinforce that message to new entrepreneurs, but it's not their fault if a product isn't successfully completed and shipped.

  • J3ST3R5
    J3ST3R5 2 months ago +1

    You're not buying a product on Kickstarter or Indiegogo you are making an investment. Go buy a product on Amazon (mostly relisted stuff from alibaba) if you are worried about sketchy startups.

  • Neurotic Arts
    Neurotic Arts 2 months ago +3

    Star Citizen.
    Started in 2012
    250 million dollars raised
    To be released in 2014
    now 2019
    Still, no official release planned.
    Live feeds I followed showed very limited gameplay, suffering from bugs that drop your character through the floor...
    The game sells you bogus content for 15000+ dollars -
    - Products don't ship
    Because "entrepreneurs" think it is easier to start something and see it through to the end than it actually is in reality.
    Actually, most of them just think about the end... They have the idea and then all they see is the completed version of it... not the work in between...which can be mighty daunting indeed.
    Others just scam...because they could and they can...

  • Karl Nilsson
    Karl Nilsson 2 months ago +2

    idk if we're taking votes but i absolutely don't think the platforms need to take on this responsibility. They should make clear though that they're a type of investment service, not a pre-order service.

  • lance dmello
    lance dmello 2 months ago

    OSSIC X was such a scam right from the start they STOLE 2.5 million, Jason Riggs and Joy Lyons con artist, stay away from these cons

  • Mauro Gori
    Mauro Gori 2 months ago

    lmao solar roads

  • K M
    K M 2 months ago +4

    When you're funding a project, you're not buying a product, you're investing in the possible development of one.

  • camnow
    camnow 2 months ago

    lengthy video

  • Get wise
    Get wise 2 months ago

    Here glass frame is so cool

  • uindy4
    uindy4 2 months ago

    The founders are the ones responsible.

  • azamean
    azamean 2 months ago +1

    Kanoa and Radiate Athletics were 2 I funded who disappeared, thankfully I got a chargeback for the Kanoa!

  • Warren Scott
    Warren Scott 2 months ago

    Top of the range Eve V backer here, still haven't received it over 18 months later and I still haven't seen anything about my refund either.

  • ReX Slayer
    ReX Slayer 2 months ago +1

    Ashley is divine

  • Philip Jan
    Philip Jan 2 months ago +1

    Isn’t the risk the whole point of investing? I think that the platforms should inform pledgers more clearly about the risk they are taking and at the same time, the platforms should request frequent updates from startups.

  • aswin ganesh
    aswin ganesh 2 months ago

    Nice series i like it 👍🏻 good work team✊

  • Batam City Tour
    Batam City Tour 2 months ago

    If you want to materialize your project for cheap in China you got what you deserve... Copied and cheated

  • William Frias
    William Frias 2 months ago +1

    I just feel like if you're one of these backers that shelled out a lot of money just to be the first person to get that "hot new piece of tech", then you're delusional and irresponsible in gambling your money like that.

  • Israel Lai
    Israel Lai 2 months ago

    I only ever back companies that have already made and sold stuff before

  • Anirudh Pratap Singh
    Anirudh Pratap Singh 2 months ago

    Are you daughter of Benazir Bhutto ?

  • _Persephone_
    _Persephone_ 2 months ago

    My friend gave like 5K to some crowd funding project towards a 3D printer. He gave enough that once they developed and completed the project 4 years later, he was sent one! 😁 We love messing around with 3D designs and trying to facilitate all of it's capabilities.

  • MILAN
    MILAN 3 months ago +1

    The dark side of empty promises and bad management

  • Marco Turetta
    Marco Turetta 3 months ago

    Fontus

  • Alan Martinez
    Alan Martinez 3 months ago

    Whats her @

  • cattigereyes1
    cattigereyes1 3 months ago +11

    Sounds like a unregulated scammers dream,
    Big promises and large sums of cash to be lost quickly in the shuffle and folks left with nothing.

  • Kacper Bartoszak
    Kacper Bartoszak 3 months ago

    This is why I wish all the best to Pledgecamp project. Really good video btw

  • TJ Marx
    TJ Marx 3 months ago +1

    You're backing an idea, not preordering a product. It is 100% the backers responsibility to understand that point. They aren't buying something, they're making an investment in a company. It comes with risks, including getting nothing and losing that money. Don't back products you can't afford to not receive. Simple.

    • Artam Studio
      Artam Studio 3 months ago

      This concept is apparently too difficult for many to understand *sigh*

  • Shreyas Subramaniam
    Shreyas Subramaniam 3 months ago

    As someone who's lost at least $500 on hardware products that didn't ship, I've often thought about how best this problem could be addressed. One solution that I came up with was for the platform to fund in tranches - release the funding in 3 or 4 tranches on hitting pre-determined milestones. It would then be the platform's responsibility to ensure that the milestone is hit. This will mitigate some of the risk, and backers can at least get back some of their money.

  • Blake Cornforth
    Blake Cornforth 3 months ago

    Why don’t they loan the money to the creators so that there’s some protection of the money? Then if they deliver on the product, don’t collect interest because they held up their end of the deal.

  • Michael Crosby
    Michael Crosby 3 months ago

    This is exactly why we need to see crowdfunding projects on the blockchain!

    Pledgecamp will change the game in this respect - transparency, trust and accountability for all parties involved.

  • Sawyer Seth
    Sawyer Seth 3 months ago

    Is it just me, or are the Kickstarter and Indigogo offices way nicer then I thought they would be?

  • Sawyer Seth
    Sawyer Seth 3 months ago

    verge actually has a good series.
    it's like "worth it" for buzzfeed, wow

  • Matt Rose
    Matt Rose 3 months ago

    So I wash watching TV, the presenter said 'Crowdfunding', I scroll down on my phone and this video pops up. I had a heart attack.

  • Luis Antonio Perez
    Luis Antonio Perez 3 months ago

    Crowdfunding is pre-sales - plain and simple. Anyone (entrepreneur or platform) who doesn’t recognize or honor this is being willfully ignorant.

  • Rayeen Fardeen rayeen
    Rayeen Fardeen rayeen 3 months ago

    Wow that's garls is so hot

  • Red Butterfly
    Red Butterfly 4 months ago

    No one to blame but the kikstarter because they create this group and give them a flatform to scam.. Ive been cheated 1time actually took almost 2yrs and nothing.. Im not gonna chase someone for 25$ but i learn not to trust so fast.

  • lnl4Universe
    lnl4Universe 4 months ago +1

    The platform needs to take some responsibility. As a buyer for the government, we pay according to the milestone: Concept paper, mock draft/model, prototype, tooling, etc.... I worked with many Engineers, they're not motivated if there is no deadline.

  • Redcatrobe
    Redcatrobe 4 months ago

    Amen amen

  • Anthenor Jr
    Anthenor Jr 4 months ago

    If it don't ship, is a problem with the courier probably!

  • Samarth Narladkar
    Samarth Narladkar 4 months ago

    Best Series for a Begineer!

  • cmdr corp
    cmdr corp 4 months ago

    Alright everyone one more time. DONT PREORDER ANYTHING
    That is essentially what you are dping when you back, you are just preordering, there is no collateral if they company folds. You are throwing money into a product that doesn't exists.

  • Cesar Perez
    Cesar Perez 4 months ago +1

    Love this series!!!

  • Alan Castaneda
    Alan Castaneda 4 months ago

    The entrepreneur should be solely responsible, just as other businesses are. Crowdfunding websites provide a means, whether the entrepreneur fails, is not the websites' fault. Unfortunately, patrons are vulnerable. As far as I know, no regulation protects their investment.

  • hbarudi
    hbarudi 4 months ago

    So many just charge their credit card on this stuff asking for its conveniences and not thinking that they might not be capable of actually creating the listed product.

  • Sylen
    Sylen 4 months ago +22

    Did you not even mention what cut of the funding the crowd-funding websites take from each project?

  • AtrumNoxProductions
    AtrumNoxProductions 4 months ago

    I wish someone would look into the Znaps campaign.