What is Due Diligence

Without an equivalent conventional form, reward-based crowdfunding (RBCF) brings in new concepts that demand deeper awareness by all stakeholders, so that they can acknowledge corresponding responsibilities. Despite famous intermediaries' nearly decadelong operations, the digestion of risks seems still incomplete, also hindering a solid evolution. This qualitative study is a step toward a more holistic understanding of success and manufactured risks of RBCF that have been left out of sight in studies so far. Lack of efficient visibility on projects' post-funding completion and limitless overfunding create potential conflicts of interest which threaten platforms' neutrality and sustainability. RBCF platforms must afford higher transparency and richer tools for managing the risks to tap their true potential. This chapter presents an overview of the major pitfalls of Kickstarter (KS) and Indiegogo (IGG) that can throw light on RBCF's general shortcomings, also offering a glimpse on two successfully funded but failed projects.