Not necessarily a scam, but Sixense raised money for a tracking device, which they then used to develop MakeVR instead. Now they make profits of selling MakeVR, backers get nothing.
"Sixense is still be best known for stringing along Kickstarter supporters of its STEM controllers, a project which raised more than $600k and has yet to ship to backers more than three years after its targeted ship date. Failed Kickstarter projects aren’t all that rare but Sixense has continued to post updates discussing supposed improvements or production issues while backers beg for refunds. All of this has been done while continuing to transition its efforts into software projects like MakeVR."
I backed a kickstarter for $20 that I'm pretty positive did exactly that. Communication I had with the project seemed to indicate that they used the money to pay for a move. In retrospect, looking at this Kickstarter, it has got all the warning signs of a project that won't deliver, but then again, it's $20. Luckily it's the only project out of several dozen where I've gotten burned. Still, it's a wonder that Kickstarter lets this crap go on on their platform.
A lot of app developers do that on mobile... "Man, this app sucks and doesn't do what it should. Oh well, it's only $0.99"
That's why I am a proponent of easy refunds and/or trial periods on apps. Like: if I uninstall this from my phone within 7 days I don't get charged.
As a seasoned KickStarter backer I do a lot of due diligence. and haven't lost money yet But the average project I have backed is $300 so I'd be very pissed if I did.... not like losing $20.
"You have to know, anything crowdfunded is very high risk. I'm not sure why people even do it if the reward is maybe a product at a discount."
I've done it because of a product that seems to actually fit my needs or because it is neat. The one i'm waiting on right now is a 3D printer with laser engraving and carving abilities. If it does a little of what it says it does, it'll be well worth it. Worth it enough to risk the money. At this point, even if I don't get the product, I've had months of ideas pouring into my artsy head and will probably find other ways to do similar things, so I've already benefited.
And sure it is a risk, just by nature. I know I could lose the money, so I don't use money I need to live. It is the same rule I use for gambling, either at the rare casino visit or when playing lottery (the hope tax). The odds are better with this, though, and honestly my spouse and I would spend just as much going to a casino and blowing our money there. Not getting the stuff isn't happy, but in the end isn't a big deal.
If that sort of risk doesn't sit comfortably with you, then it is going to seem silly.
> You have to know, anything crowdfunded is very high risk.
People who ordered from Kanoa's site directly didn't "crowdfund" anything, they "pre-ordered" the headphones. They weren't gambling on Kickstarter. So what risk are you talking about? It has nothing to do with risk, it is fraud.
> I'm amazed some unscrupulous company has't abused it to take money with no intention of ever delivering a product.
there are plenty of million dollar fraudulent projects on Kickstarter, they don't care, they have only their reputation to loose.
I'm amazed some unscrupulous company has't abused it to take money with no intention of ever delivering a product.