Kickstarter: Investment or Purchase?

[Syphus]

In theory, "Working on the game" involves paying salaries and other incidentals as well.

To go with the Shark Tank example, they are investing in products because these are companies that are only making one product. They are giving the money to a specific business, which is why they often ask, "What do you plan to do with this money?"

[Nero]

In theory, "Working on the game" involves paying salaries and other incidentals as well.

To go with the Shark Tank example, they are investing in products because these are companies that are only making one product. They are giving the money to a specific business, which is why they often ask, "What do you plan to do with this money?"

Not necessarily. A lot of times they are approached by an individual with no business attached, just a product and they develop that project or item until it makes their money back for the.

My point is that I am putting the money into the kickstarter to build a game, not a company. Now if the kickstarter is to say kickstart a video game company then I am investing in that company. Also there are a lot of things to spend extra money on if the game reaches a lot over its goal. Hire another part-time developer to increase quality, hire another artist or musician, or something like that. There are things that can be used to increase the quality of a video game with extra money.

Either way, not debating it. Just an interesting point. There can be legal ramification if a fundee takes the money and run.   

[Yarkista]

Are there any laws specific to crowdsourcing in the event of some guy running off with the money? It's an interesting topic.