I said over here (viewtopic.php?f=4&t=318) how I thought Kickstarter works (mostly in regards to accountability of project creators), and that I'd check out the Terms of Use and see what's what.
Instead of correcting the things that I got wrong, let me start from scratch:
Kickstarter is a shop. You are purchasing the items that are detailed in your reward tier. There is no concept of investment in Kickstarters, all you are entitled to is what is written in your reward tier.
As for accountability in Kickstarter projects, there is good news:
"Project Creators are required to fulfill all rewards of their successful fundraising campaigns or refund any Backer whose reward they do not or cannot fulfill." (from the Terms of Use)
"You shall not ... Submit Content, that you know is false, misleading or inaccurate." (Content is basicly anything you can put up on the site)
A little less binding is:
"The Estimated Delivery Date listed on each reward is not a promise to fulfill by that date, but is merely an estimate of when the Project Creator hopes to fulfill by.
Project Creators agree to make a good faith attempt to fulfill each reward by its Estimated Delivery Date."
So if a project absolutely does not fulfill a reward, they would have to give a refund, or face the consequences of violating the Terms of Use (I assume that means the backers could sue them in some shape or form, justice prevails).
On the other hand, there is no hard date for fulfillment of rewards (if pressed, Creators just have to show they tried), and as soon as the rewards are more ambiguous (say, "The finished product"), I feel it's going to be crazy difficult to prove that a reward has not been fulfilled.
As this guy put it, there are "gooey, subjective bits like "Technically, we got a *game*, but it's got more bugs than an Entomologist Convention"." And you won't be able to take that back to the shop to get a refund.
So I suppose what I'm saying is, don't be totally enchanted by kickstarter, understand what you're in for, be cautious with what you back and everybody should be happy.
I still think it's a fantastic service and has got some awesome projects off the ground. I'll continue to use it and participate in shaping the future of game development.
Terms of Use:
http://www.kickstarter.com/terms-of-use?ref=footer
That guy:
http://stoicstudio.com/forum/archive/in ... /t-38.html
Article on how to approach Kickstarter:
http://penny-arcade.com/report/editoria ... aigns-are-
Plans for an actual crowd-investment platform:
http://penny-arcade.com/report/editoria ... al-investm
Another 'be careful' article (about the Mythic kickstarter):
http://www.itworld.com/business/273550/ ... -out-there
Another 'Kickstarter's not the greatest' article:
http://www.gatheryourparty.com/articles ... -industry/
(I realise this list looks a bit unbalanced, but the pros of Kickstarter speak for themselves
(ps, is there spoiler tag feature on these forums? And yes, I have 2 assignment deadlines looming, so naturally I go and spend hours googling and writing this stuff up instead.

