Some Thoughts on Kickstarter Financial Benefits and Risks
Is the risk worth the reward? ~
Avery Abernethy, 27 February 2018
Kickstarter has provided significant start-up funds for many gaming projects. Pillars of Eternity raised almost $4 million dollars. The 7th Edition of Call of Cthulhu raised over $561,000 and many smaller PC, boardgame, and tabletop games raised enough money to fund their project. But for individuals, funding a kickstarter game project is fraught with risk. There are no guarantees that a funded project will be completed either on time or ever. Kickstarter itself does not guarantee that projects are legitimate or that they will be completed. There are a number of horror stories about funded Kickstarter projects which never completed their project and ultimately returned nothing to backers.
From a financial perspective, how can you decide if contributing to a Kickstarter Campaign is a good bet? I’ve recently helped fund a couple of kickstarter projects after overcoming extraordinary levels of apprehension. I’ve got a few thoughts on how to consider a decision to fund a Kickstarter game project.
The Unavoidable Risk Is Huge
Even a casual reading of Kickstarter’s legal language shows Kickstarter itself does not stand behind any funded project in any way. They do not promise that a funded project will be: competed; completed on time; or completed in a manner consistent with the project’s promotion. Kickstarter’s policies have been tested in US courts. Legally, if you pay into a funded Kickstarter project and the project fails, your only recourse is suing people responsible for the individual Kickstarter project. Good luck collecting from a failed funded project. If an individual or a company does not have any assets, you will not collect anything even with successful lawsuit. The conclusion I draw from this is pretty simple. Don’t fund a Kickstarter project if you are unable to accept the risk of losing 100% of your pledge.








