Crowdfunding has reworked the best way folks fund inventive initiatives, new companies, and daring concepts. With a compelling pitch and just a little web magic, some campaigns have raised tens of millions nearly in a single day. However whereas many backers eagerly threw their help (and cash) behind these ventures, not each story had a cheerful ending. The truth is, a number of the most profitable crowdfunding campaigns ended up delivering nothing however frustration, lawsuits, and dashed hopes.
Right here’s a more in-depth take a look at 5 crowdfunding campaigns that raised eye-popping quantities of cash—solely to utterly disintegrate.
The Coolest Cooler
When the Coolest Cooler launched on Kickstarter, it promised the final word occasion accent. It wasn’t only a cooler. It was a blender, a Bluetooth speaker, a USB charger, and a bottle opener multi functional. Backers have been dazzled by the thought and rapidly contributed over $13 million, making it considered one of Kickstarter’s largest success tales on the time.
Sadly, the Coolest Cooler become considered one of its largest cautionary tales. Manufacturing points, transport delays, and value overruns plagued the venture. Finally, the corporate began promoting the product on Amazon earlier than fulfilling all backer orders, leaving 1000’s of authentic supporters with out the cooler they’d paid for. By 2019, the corporate introduced it may now not ship to remaining backers, and the dream of the “coolest cooler ever made” melted away into disappointment.
The Zano Drone
The Zano Drone marketing campaign appeared nearly too good to be true. It promised a pocket-sized drone able to autonomous flight, HD video, and smartphone integration. Backers liked the thought, and the marketing campaign pulled in additional than $3 million on Kickstarter.
Regardless of the large funding, the Zano Drone by no means delivered on its guarantees. Early testers reported that the drones have been nearly unattainable to manage, and key options didn’t work. After months of excuses and imprecise updates, the corporate behind the Zano folded, citing technical challenges they couldn’t overcome. An impartial investigation later revealed that the venture leaders knew the drone wasn’t viable lengthy earlier than they shut issues down.
The Lily Digicam
The Lily Digicam marketed itself because the world’s first throw-and-shoot digital camera drone. With a slick demo video displaying customers tossing the machine into the air and getting gorgeous aerial footage, pleasure unfold quick. The marketing campaign raised an unimaginable $34 million via crowdfunding and pre-orders mixed.
Behind the scenes, although, the expertise by no means really labored the best way the video recommended. After a number of delays and failed prototypes, Lily Robotics in the end shut down with out ever delivering a completed product. Even worse, it was later revealed that the “demo” video had been faked utilizing footage from one other drone, sparking a authorized firestorm. Clients have been finally refunded, however the scandal left a long-lasting scar on the crowdfunding business.
The Skarp Laser Razor
The Skarp Laser Razor was pitched because the razor of the longer term, promising to make use of lasers as an alternative of blades for a more in-depth, smoother shave with out irritation. The Kickstarter marketing campaign rapidly raised $4 million earlier than it was suspended by Kickstarter, citing doubts in regards to the expertise’s viability. Undeterred, the creators moved their marketing campaign to Indiegogo and raised much more cash.
Years later, backers are nonetheless ready. No working laser razor was ever produced, and progress updates turned more and more imprecise. It turned clear that whereas the idea sounded revolutionary, the science merely wasn’t prepared. As an alternative of a futuristic grooming software, supporters have been left holding empty guarantees and dashed goals.
The Pebble Time 2 and Pebble Core
Pebble was considered one of crowdfunding’s early success tales, having created one of many first smartwatches earlier than giants like Apple entered the market. Their follow-up venture, the Pebble Time 2 and Pebble Core, raised greater than $12 million from enthusiastic backers who trusted the model.
Then the stunning information got here: Pebble was promoting its belongings to Fitbit, and the brand new merchandise would by no means ship. Regardless of their huge fundraising success, Pebble had struggled financially behind the scenes. As a part of the acquisition, the Pebble model was successfully shut down. Whereas Fitbit honored some restricted guarantee obligations, backers have been left with out the merchandise they’d funded and with no recourse for refunds.
Generally Desires Fail
Crowdfunding will be a tremendous software for innovation and creativity, however these campaigns present how rapidly it may possibly veer off track. Even well-intentioned creators can fall sufferer to technical points, monetary mismanagement, or sheer unhealthy luck. For backers, these failures are a painful reminder that pledging cash to a marketing campaign isn’t the identical as making a assured buy. It’s extra like shopping for right into a dream—and typically, goals don’t come true.
Have you ever ever backed a crowdfunding marketing campaign? Was it a hit or a disappointment?
Learn Extra:
Actual Property Crowdfunding in Asia: A New Funding Avenue
Utilizing Crowdfunding To Pay For Your Retirement
Riley is an Arizona native with over 9 years of writing expertise. From private finance to journey to digital advertising and marketing to popular culture, she’s written about every thing beneath the solar. When she’s not writing, she’s spending her time outdoors, studying, or cuddling together with her two corgis.