Millions of dollars are donated to crowdfunding campaigns each year, but how reliable is the system? While we often hear stories of wildly successful campaigns, not all projects end well. Even if a campaign is successfully funded, unrealistic budgets and a lack of business acumen can mean that supporters don’t receive their rewards, and start-ups are left with expensive commitments and angry donors.
While crowdfunding is essentially a donation process, the carrot for many donors are rewards which range from merchandised mugs and DVDs through to glamourous opportunities such as a private performances or the chance to be an extra in a film.
