Not every crowdfunding project gets off the
ground—Kickstarter reports that only about 44%
of its projects have reached their funding goals.
Sometimes projects that do get off the ground
simply flame out, disappointing all of their investors.
Although this is no different than investing in
stocks or other equities, Kickstarter has sought to
ease investor fears by improving its communication
and handling of the risk inherent in the projects
hosted on its site. They introduced a section
where fundraisers are required to disclose the
risks inherent in their project, and for inventions,
the site now requires photos of prototype products
instead of simply drawings, simulations, or
renderings.