>A big problem with crowdfunding is that many backers don't seem to understand the risk they are taking on.

That's because Kickstarter advertises the potential benefits and buries the risks.

If you read their KS page [1] it states: "Pledge $185 or more: COOLEST COOLER: Get your very own COOLEST, complete with blender, a waterproof Bluetooth speaker, USB Charger and all the other awesome features. You will be saving $115 off of the retail price of $299. (Just watch people flock to your gathering when you're the only one with a powered blender and thumping music!). You'll also get the COOLEST Drink Guide and all our updates. (add $15 for shipping)".

Now, you and I know that means "maybe", but does the average backer? I don't think so - honest. It says, right there, in black and white, if I pay $185 I get XYZ. Sure, it says maybe not in the contract, but who reads those? Don't forget home loans in mid-2000. In that case, you heard "HOMES FOR $899 A MONTH!" not so much about the adjustable rate and the potential to collapse your living situation.

Ramble ramble...

[1] https://www.kickstarter.com/projects/ryangrepper/coolest-coo...