> I'm really turned off by this model of 'pay us in advance for developing a product that hasn't been market tested or validated'

Isn't that the whole premise behind a huge chunk of the projects on indiegogo and Kickstarter? "I want to make a cool thing, but I can't afford to quit my day job; please pay me up front"?

I mean, I'm truly concerned about online privacy, but there are several barriers standing between me and my solution--not the least of which is the ability to eat and shield myself from the elements while crafting said solution. How is what these folks are asking any different from pitching a business plan to a VC? Sure, if you're going to a VC it's expected you'll actually have a business plan, but the function is the same: Convince people with resources that what you're doing is worthwhile and achievable, so they'll give their resources to you.