KickstarterForum.org

Hello,

I want to know if I can use a crowdfunding website as a fund-raising tool for a project I want to start working on, or I must use it and as a tool to create a product that will be purchasable to the backers?

I mean, do I have to deliver a final product if I manage to reach my goal, or that the money collected from the website can be used just like as if an investor invested in my idea and provided money, and that he knows that failure is an option and that the money can be lost if the project won't succeed?(despite the fact that the goal was reached and money was provided)

Thanks.

It depends. If you offer rewards (like the product itself), you must fulfill them to the best of your ability. If you don't offer rewards and just accept donations, you don't need to ship out your product.

If you try to complete the rewards to the best of your ability but for some reason can't, then that's okay, but I would be super transparent about why and try to make it up to your backers in some way. This sort of goes back to the "kickstarter is not a store" message. Failure is an option and products are not always delivered on time or at all.

Thank you for your help here man!

But I just heard that if you used the money, and fail to deliver the product, even if you tried your best, you can be sued, that's one of my concerns now.

For reward based crowdfunding sites like Kickstarter, you are legally obligated to follow through with the rewards...whether you actually get sued or not is another story.
I think what you're asking about is crowdfunding with equity. Services that support that are popping up but I don't know much about them. Maybe someone else here does?

Matt
http://prismland.com/