Kickstarter Project Failure - What are my rights?

sabbath180

Some people may have seen this story: bbc . co . uk/news/technology-34858171

I think this was Europe's largest ever Kickstarter project, with £2.3 million raised from over 12,000 backers.

With the company now having gone into liquidation, as a backer, what can I do? Is there any way of me reclaiming any of the £175 I paid back in January (others ordered multiple drones so are significantly more out of pocket than me)?

Having paid by credit card, could a claim be made via Section 75 or Chargeback? Obviously I never received the product I paid for, but as this was a crowdfunding project, the situation is a bit different to a normal shop purchase or pre-order.

unholyangel

It will ultimately come down to what exactly you've paid for.

If memory serves, with kickstarter you don't actually buy any goods, you're basically just donating to a fund. If that is the case, then its unlikely a section 75 claim would help.

There would also be issues if you paid via a third party.

From reading the article, it seems they've blown the 2 mill investment and whether backers get anything back will largely depend on if the administrators are able to salvage any assets.

Caz3121

as a backer you should be able to read the "official statement" posted on the kickstarter website today (no idea what it says as only backers can read it)

sabbath180

This is the official statement:

Dear Backers,

Following recent events, the board members have considered carefully the technical, commercial and financial viability of the Zano project.

Having explored all options known to us, and after seeking professional advice, we have made the difficult decision to pursue a creditors voluntary liquidation. All creditors will be contacted by an insolvency practitioner next week.

We are greatly disappointed with the outcome of the Zano project and we would like to take this opportunity to thank everyone who has supported us during this difficult period, especially our loyal employees whose commitment has exceeded all expectations.

Thank you,

Torquing Management

stevemLS

Is this any different to the position of shareholders in a company that goes belly up?

bluenoseam

I've always seen Kickstarter as an investment opportunity - as with all investment opportunities there is a risk of loss involved. If the project has made it's goal & the project finalised then I think it's the case you lose your money, if the goal is not met your money is returned. (Only project I've ever backed was a successful one I'm afraid so I'm sketchy on the details.)

paddyrg

http://www.bbc.co.uk/news/technology-34832447 details your options

Kickstarter is NOT an investment vehicle - for that you need seedrs or similar, where you have a share of the company. Kickstarter wriggle out of this by having gifts in return for donations - so your £175 donation is just that.

MX5huggy

The Liquidators have just posted this. I don't know if this is correct (I know that have quoted the terms correctly) in UK law I can't imagine there are "backers" did we really just give them a gift? in UK law?

GS/GS/TL/T210

24th November 2015

TO ALL KICKSTARTER BACKERS

Dear Sirs

Torquing Robotics Limited - In Liquidation

Company Number 7782038

I would inform that monies from pledges paid by Kickstarter “backers” received by the company are not debts owed by the company nor are they equity investments. Kickstarter states on its website that Kickstarter funding cannot be used to offer equity, financial returns or to solicit loans.It is also stated by Kickstarter that projects cannot offer financial incentives like equity or repayment.As such, Kickstarter “backers” have no status as creditors in the liquidation of Torquing Robotics Limited for the non-receipt of rewards in the failed project.Hence, no notice of any creditors’ meeting is applicable.

No proof of debt forms and/or proxies from Kickstarter “backers” will be admitted for voting purposes at the creditors’ meeting on 4th December 2015.

Without remotely being inconsiderate any Kickstarter “backers” that attempt to gain access at the creditors’ meeting on 4th December 2015 will be refused entry.I sincerely hope that this release will ensure that Kickstarter “backers” do not waste their time and money by travelling here on 4th December 2015.

I trust that this clarifies the position but from those who have contacted my firm to date I believe that all Kickstarter “backers” are already aware.

Yours faithfully

for and on behalf of

TORQUING ROBOTICS LIMITED

GARY STONES

LIQUIDATOR

mattyprice4004

Read Kickstarter's terms and conditions - I believe you did give them a gift, yes.