Crowdfunding a website

Crowdfunding Sites Grapple with Fraud

How the Scam, a popular crowdfunding website, almost gave $120, 000 to a fake start-up business last week. Fortunately, the site pulled the plug on the project, “Kobe Red – 100% Japanese Beer Fed Kobe Beef Jerky, ” a few days before it released the cash. But the incident has raised concerns about crowdfunding, a new way of raising money from a large group of people online.

Crowdfunding isn’t an investment in the traditional sense. Unless it is specifically stated, you don’t own a piece of the business, invention or project. Consider your funds a donation. Crowdfunding billed as “investments” are under scrutiny and, in some cases, may be illegal. The Financial Industry Regulatory Authority is working on additional protections for investors. There are also risks for creators, as ideas posted online can easily be copied.

A friend sends you a link to an interesting project or charitable cause on a crowdfunding site. You’d like to donate, so you read the profile and everything looks OK. There are photos, videos and a project discription. You pledge . According to the site, your donation earns you a project t-shirt, which will be shipped in two months. Months pass, and you receive a vague project update, but your t-shirt never arrives. Were you scammed?

avatarCrowdfunding is still the Wild West of fundraising. As a donor, it can be hard to distinguish fraud from an entrepreneur who simply promised something he/she couldn’t deliver. When you don’t receive your shirt, it may be because the project leader took the money and ran. But more likely, it’s simply that the project ran into logistical problems — just like traditionally-funded businesses do.

With dozen of new projects popping up each day, crowdfunding sites depend on their users to identify and report fraud. So be sure to do your homework before giving.

Michael Wiese Productions Crowdfunding for Filmmakers: The Way to a Successful Film Campaign
Book (Michael Wiese Productions)

Fundable indiegogo kickstarter

by Acumagnet

Here are your chances to make a fast cool million.
Make 3 bogus but plausible programs that get people ecited. Raise as much money as possible.
Collect money and leave country.
I got screwed on prosper, and those same people, with bad credit, go to crowdfunding websites with even less to prove about their viability except for some crazy idea on how to make money.
There are already people getting screwed on these crowdfunding sites. It would be nice to have a website monitoring this and compiling the stories.

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How Entrepreneurs Can Make Environment Cleaner  — The Moscow Times
Of the roughly 500 crowdfunding platforms that now exist, several specifically target clean technologies.

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