BizSugar.com › Raising Capital › Building Authority Online: Crowdfunding Accountability

In 2011, Seth Quest raised $35,000 via Kickstarter for his product the “Hanfree,” an intelligently designed hands-free iPad stand. Unfortunately, in the campaign’s aftermath, something went wrong. Quest could not create his product nor ship the incentives, leaving one backer, Neil Singh, who donated $50 (+$20 for shipping), disappointed. Soon after, Singh sued Quest resulting into the project creator’s financial ruin and professional disgrace.