Earlier quoted context omitted.
I understand how Kickstarter works ... I was more referring to the fact that those who funded their Kickstarter campaign didn't get a return on their investment (there are plenty that lose). I won't go so far to say that the campaign was set up with false pretenses - I think the business probably just moved away from the consumer market - but the reality is that the backers funded the early stage growth of this compa…
I think the point that the person is trying to make is that when you pledge money on kickstarter, you are doing it in hopes that you will see the product emerge -- because you want to buy/use it. An angel investor rarely invests because they want the product. They invest because they want the ROI. In that sense, having an investor take care of the funding so that the product comes to market is a good thing for the ki…
There are of course a whole tier of backers that get stickers or just thanks for backing projects at lower tiers - these backers are altruists who believe that the project is worthwhile without expecting compensation.