Backers are supporting projects to help them come to life, not to profit financially. Instead, project creators offer rewards to thank backers for their support. Backers of an effort to make a book or film, for example, often get a copy of the finished work. A bigger pledge to a film project might get you into the premiere — or land you a private screening for you and your friends. One artist raised funds to create a wall installation, then gave pieces of it to her backers when the exhibit end."
Backers that support a project on Kickstarter get an inside look at the creative process, and help that project come to life. They also get to choose from a variety of unique rewards offered by the project creator. Rewards vary from project to project, but often include a copy of what is being produced (CD, DVD, book, etc.) or an experience unique to the project.
Project creators keep 100% ownership of their work, and Kickstarter cannot be used to offer equity, financial returns, or to solicit loans."
"Projects can’t fundraise for charity, offer financial incentives, or involve prohibited items.
We’re all in favor of charity and investment, but they’re not permitted on Kickstarter. Projects can’t promise to donate funds raised to a charity or cause, and they can’t offer financial incentives like equity or repayment. We also can’t allow any of these prohibited things."
They are incredibly clear about this. Backing a project on Kickstarter is not an investment.
Re:FTC goes after board game campaign gone wrong in first cr...
by reagency on Thursday June 11, 2015 @12:14PM
(#9700544)
KS also claims to not be a store. It is disingenuous to try to have it both ways. If KS weren't fraudulent, they would remove the ability to promise rewards that don't exist.
"4. Creators keep 100% ownership of their work.
Backers are supporting projects to help them come to life, not to profit financially. Instead, project creators offer rewards to thank backers for their support. Backers of an effort to make a book or film, for example, often get a copy of the finished work. A bigger pledge to a film project might get you into the premiere — or land you a private screening for you and your friends. One artist raised funds to create a wall installation, then gave pieces of it to her backers when the exhibit end."
https://www.kickstarter.com/help/faq/kickstarter+basics?ref=...
"What do backers get in return?
Backers that support a project on Kickstarter get an inside look at the creative process, and help that project come to life. They also get to choose from a variety of unique rewards offered by the project creator. Rewards vary from project to project, but often include a copy of what is being produced (CD, DVD, book, etc.) or an experience unique to the project.
Project creators keep 100% ownership of their work, and Kickstarter cannot be used to offer equity, financial returns, or to solicit loans."
https://www.kickstarter.com/rules?ref=footer
"Projects can’t fundraise for charity, offer financial incentives, or involve prohibited items.
We’re all in favor of charity and investment, but they’re not permitted on Kickstarter. Projects can’t promise to donate funds raised to a charity or cause, and they can’t offer financial incentives like equity or repayment. We also can’t allow any of these prohibited things."
They are incredibly clear about this. Backing a project on Kickstarter is not an investment.