Crowdfunding Scams: Don’t Believe the Hype!

In recent years, crowdfunding has become more and more popular. What people often forget is that crowdfunding isn’t the same as preordering and in truth it’s a gamble at best. There have been many instances in the past where an item was backed and things were promised but the inventor either never followed through or production demands were never met, which resulted in backers losing all of their money. It happens more often than you think so it’s important to not fall victim to it.

In order to combat getting scammed, there are two things you can do. The first thing would be to simply not back anything until the item is officially out and has been review to make sure that it’s a quality item. If you are going to participate in crowdfunding, then see if there is an insurance option available on the website. For example, IndieGogo recently tested out an “optional  insurance” feature where the buyer was able to pay an extra $15 in order for their investment to protected in case there is a problem with the invention and/or it was never produced. Now while the insurance option isn’t available on all crowdfunding sites, we believe that it will become a prevalent feature on crowdfunding sites in 2015. 

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