So yes, I agree that there are potentially negative effects that could result from a failed campaign. People put a lot of effort into raising the funds necessary to pursue their dreams. A failed campaign can be devastating to someone who is emotionally invested in their future plans.
However, I don't believe that should stop entrepreneurs from trying to solve the problem, especially in this case. Codefund exists because no one else has presented a better solution, and I believe that the existence of an imperfect solution is a greater good than the lack there of, despite potentially negative psychological effects.
As a company, we can do a better job coaching fundraisers about the reality of their situation, in an effort to regulate their expectations. We can and we should do that much at least. That being said, I don't think closing the doors on educational crowdfunding is the answer. I don't know what the ideal solution is, but Adrian and I are committed to iterating toward that vision based on your feedback.