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I don't know myself, but presumably like any funder in any business your money is entirely at risk should the company fail, but without any of the legal framework you would put in place with alternative investments.
What about fraud; is there realistically going to be any legal recourse for several thousand people each pledging tens or hundreds of dollars?
I've seen games taking the Kickstarter route that I would love to see come to fruition, but I am loathed to put my own money on them.
currently playing: DDO, AOC, WoT, P101