Crowdfunding has transformed the way people fund creative projects, new businesses, and bold ideas. With a compelling pitch and a little internet magic, some campaigns have raised millions almost overnight. But while many backers eagerly threw their support (and money) behind these ventures, not every story had a happy ending. In fact, some of the most successful crowdfunding campaigns ended up delivering nothing but frustration, lawsuits, and dashed hopes.
Here’s a closer look at five crowdfunding campaigns that raised eye-popping amounts of money—only to completely fall apart.
The Coolest Cooler
When the Coolest Cooler launched on Kickstarter, it promised the ultimate party accessory. It wasn’t just a cooler. It was a blender, a Bluetooth speaker, a USB charger, and a bottle opener all in one. Backers were dazzled by the idea and quickly contributed over $13 million, making it one of Kickstarter’s biggest success stories at the time.
Unfortunately, the Coolest Cooler turned into one of its biggest cautionary tales. Manufacturing issues, shipping delays, and cost overruns plagued the project. Eventually, the company started selling the product on Amazon before fulfilling all backer orders, leaving thousands of original supporters without the cooler they had paid for. By 2019, the company announced it could no longer deliver to remaining backers, and the dream of the “coolest cooler ever made” melted away into disappointment.
The Zano Drone
The Zano Drone campaign seemed almost too good to be true. It promised a pocket-sized drone capable of autonomous flight, HD video, and smartphone integration. Backers loved the idea, and the campaign pulled in more than $3 million on Kickstarter.
Despite the enormous funding, the Zano Drone never delivered on its promises. Early testers reported that the drones were almost impossible to control, and key features didn’t work. After months of excuses and vague updates, the company behind the Zano folded, citing technical challenges they couldn’t overcome. An independent investigation later revealed that the project leaders knew the drone wasn’t viable long before they shut things down.
The Lily Camera
The Lily Camera marketed itself as the world’s first throw-and-shoot camera drone. With a slick demo video showing users tossing the device into the air and getting stunning aerial footage, excitement spread fast. The campaign raised an incredible $34 million through crowdfunding and pre-orders combined.
Behind the scenes, though, the technology never actually worked the way the video suggested. After multiple delays and failed prototypes, Lily Robotics ultimately shut down without ever delivering a finished product. Even worse, it was later revealed that the “demo” video had been faked using footage from another drone, sparking a legal firestorm. Customers were eventually refunded, but the scandal left a lasting scar on the crowdfunding industry.
The Skarp Laser Razor
The Skarp Laser Razor was pitched as the razor of the future, promising to use lasers instead of blades for a closer, smoother shave without irritation. The Kickstarter campaign quickly raised $4 million before it was suspended by Kickstarter, citing doubts about the technology’s viability. Undeterred, the creators moved their campaign to Indiegogo and raised even more money.
Years later, backers are still waiting. No working laser razor was ever produced, and progress updates became increasingly vague. It became clear that while the concept sounded revolutionary, the science simply wasn’t ready. Instead of a futuristic grooming tool, supporters were left holding empty promises and dashed dreams.
The Pebble Time 2 and Pebble Core
Pebble was one of crowdfunding’s early success stories, having created one of the first smartwatches before giants like Apple entered the market. Their follow-up project, the Pebble Time 2 and Pebble Core, raised more than $12 million from enthusiastic backers who trusted the brand.
Then the shocking news came: Pebble was selling its assets to Fitbit, and the new products would never ship. Despite their massive fundraising success, Pebble had struggled financially behind the scenes. As part of the acquisition, the Pebble brand was effectively shut down. While Fitbit honored some limited warranty obligations, backers were left without the products they had funded and with no recourse for refunds.
Sometimes Dreams Fail
Crowdfunding can be an amazing tool for innovation and creativity, but these campaigns show how quickly it can veer off course. Even well-intentioned creators can fall victim to technical issues, financial mismanagement, or sheer bad luck. For backers, these failures are a painful reminder that pledging money to a campaign isn’t the same as making a guaranteed purchase. It’s more like buying into a dream—and sometimes, dreams don’t come true.
Have you ever backed a crowdfunding campaign? Was it a success or a disappointment?
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