Re:State court orders Kickstarted game creator to pay $54k f...
by dragonwriter on Friday September 11, 2015 @07:08PM
(#10206609)
> If I fund a company and it fails, then I don't have any right to sue them for lost "revenue". Right?
That really depends on how you fund the company, and what the company "fails" at.
If you fund a company by providing debt (rather than equity) financing, and they fail to pay what the promised, yes, you can sue them.
> What is the difference in the case of Kickstarter. They are a crowdfunding platform are they not?
The difference between Kickstarter and debt financing is that, with a Kickstarter, the offered exchange for money now is a specified "backer reward" later, instead of a specified amount of money later.
That really depends on how you fund the company, and what the company "fails" at.
If you fund a company by providing debt (rather than equity) financing, and they fail to pay what the promised, yes, you can sue them.
> What is the difference in the case of Kickstarter. They are a crowdfunding platform are they not?
The difference between Kickstarter and debt financing is that, with a Kickstarter, the offered exchange for money now is a specified "backer reward" later, instead of a specified amount of money later.