KickStarter Caveat Emptor

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I like KickStarter and similar web-sites that enable fund raising for worthy projects.  So far, my experiences have all been positive ones and nothing has gone wrong.

However, today I felt like I may have dodged a bullet.  Fortunately, only a small non-fatal bullet.  It wasn't even a flesh wound.

There was a KickStarter project "The Tech-Sync Power System" that I'd cautiously pledged $1, so that I'd receive email updates.  The project promised an inexpensive and highly functional custom electrical wall outlet that could be controlled remotely over Wi-Fi.

Curiously, the project home page said ...

  "due to the pending copyright, and patent process, we don't have screen
   shots of our software, or more photos of our prototypes available yet,
   also we are working to finish off the UI in our software. Once that has
   completed, we will be sure to post more photos, videos and screen shots"

Despite the lack of detailed information and perhaps encouraged by regular updates from the project owner "Steven Washington", 419 backers had pledged $27,637 ... which greatly exceeded the original $2,000 goal.  A serious amount of money.   Which isn't unusual for a KickStarter project.

The funding time limit had only a few days to run.  Then, just 5 days ago, something different happened.

A couple of people started questioning the credibility of the project via the comments.  The project was promising a lot, for very little cost ... just $20 for one of these wall outlets.  The $500 pledge appeared even more extraordinary ...

  "Steven, plus one member of the Tech-Sync team, will come to your
   location.  Replace and install up to 25 wall outlets and wall switches.
   The great thing is, your Tech-Sync Power System will be in a custom
   color of your design. You’ll get special instructions on how to make
   your Tech-Sync Power System do something special using the software
   or App. Plus we’ll even cook dinner for you while your enjoying your
   new Tech-Sync Power System."

... come to your place, perform a significant installation and cook dinner ?  Okay, I won't quibble over who gets to do the washing up.  But, does it add up financially ?

A few backers searched for details on Steven Washington, about the patent pending claims and asked for reasonable verification that the project and it's members were real.

Other backers doubted these claims that the project may be a scam.

The conversation all occurred via the KickStarter project comments.

However, neither Stephen Washington or the other project members were providing solid evidence for the project to refute the "it's a scam" concerns.

Perhaps the most concerning aspect was that the KickStarter administrators hadn't got involved to sort out the sitation.  Especially since their business does depend upon the credibility of the projects that they enable (I believe it's 5% of the pledged funds).

Meanwhile, new backers were still making pledges to this project.

Yesterday, there was an update that was a concern.  If the project was genuine, then this was a sad event.  If the project was a scam, then it was a disturbing turn of events.  Steven Washington posted an update claiming that a family member had died, that Rachel Yu would fill-in and provided a detailed delivery schedule.  Today, Rachel posted another update, mentioning a project name change and an upcoming conference call between Steven and select project backers.

And now, the KickStarter project has been cancelled.  Immediately followed by the deletion of Steven Washington's KickStarter account.

I wonder what would have happened if the project had proceeded past the funding time limit, given that the funding goal was reached.  Would the backers have received real working hardware ?  Was Steven Washington just going to pocket the money and run (as some people feared) ?  Were 7 lucky backers going to remotely dim their electric lights and enjoy a Tech-Sync prepared dinner by candle light ?

Hopefully, the backers of this project will be provided with the real story, preferably by KickStarter themselves, promptly.

So, before pledging serious amounts of money to KickStarter (or similar) projects, I highly recommend that you perform some background checking ...

  • Read project comments by other backers
  • Check for other projects by the project owner
  • Search for credible track record by the project owner in the appropriate technology domains
  • Look for good supporting evidence that the project is real, e.g. video, pictures, engineering diagrams, schematics, source code repository, component pricing, prototypes

If you are starting a KickStarter project, be sure to provide as much credible information that you can ... to give your backers confidence.

Remember, if it sounds too good to be true, it probably is.

Update 2011-08-17 16:40

A short while ago, it would appear that Steven Washington tweeted ...

  "applegeeknv 27 mins ago via Twitter for iPhoneTwitter
   Someone thought it would be funny to compromise my KS account and
   delete the project, We are more than pissed."

... and now that tweet has been deleted.

Update 2011-08-17 17:30

Steven Washington's Twitter account (@applegeeknv) has been deleted.

Over on KickStarter, divaD27182 notes that Cooper from KickStarter has replied with the following ...

  "The Tech-Sync project was canceled. Please know we were talking extensively about what to do in this situation, and are working on ways to prevent this from happening again. Thanks, Cooper"

Update 2011-08-18 01:00

Several of the backers on the (now defunct) project comments stream are trying to figure out whether a new project could be started that would realize the original goals at a more realistic price.

"zenocon" has started a poll to see what price point people would be comfortable with.  Interestingly, most people have the realistic expectation that $20 per unit was way too low

Update 2011-08-19 17:00

+Davis Ford (aka zenocon) has started a Google Group for discussing project alternatives and runs DaisyWorks, which produces a modular Arduino based sensor product

51 people have replied to a poll indicating how much they'd be willing to pay for a comparable product ... 44% willing to pay $40 or more.  KickStarter is great for "putting your money where your mouth is" product market research !

Stephen from NZ is working on a similar project (see KickStarter Tech-Sync project comments)

Update 2011-08-31 12:30

Chris Gammell and Dave Jones mention the project on the Amp Hour podcast (at 47 mins 30 secs).

Update 2011-09-16 09:30

Discovered two more blog posts about this KickStarter project ...

Update 2011-12-01 15:00

Yesterday, I received my Cyber Cortex FPGA hardware from a different KickStarter project that I backed.  Subsequently, I've backed a couple of other interesting KickStarter projects.  So, despite the Tech Sync Power System problem ... KickStarter is continuing to change the world of funding start-up projects in a good way.

Update 2012-05-22 12:00

Over the last year or so, +Davis Ford has been working on DaisyWorks (overlapping goals with the Tech Sync project) ... and has now reached the point where it has become a new KickStarter project.

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