Although standout campaigns have served as great proof-of-concept for crowdfunding’s worth, like the Pebble wristwatch raising $10.2 million on Kickstarter seemingly overnight, the challenges that come along with the medium are almost too overwhelming to enumerate.
To name a few:
-Fraudsters capable of producing a slick video or business plan can now dupe thousands of people into buying vaporware or investing in a ghost company;
-Incompetent entrepreneurs can fail to deliver on their promises;
-Unsatisfied customers or investors can dispute their purchases or investments, amassing huge liabilities for the businesses, platforms, and payment processors.
SOURCE LINK to full article:http://venturebeat.com/2012/09/18/crowdfunding-risky-but-rewarding/