Originally Posted by
linberl
I'm not sure I understand your comment about his backers allowing him to conitinue if the money runs out. Crowdfunding is a no-refund, no guarantee of any product process, so backers have zero control over what happens. Many projects go years beyond the projected date and some end up getting investors to try to complete the projects. But the backers can't force him to ship or stop development or anything else (unless you're talking about investment backers as opposed to crowdfunding backers like those discussed in this thread).
They can always sue him in private court. Force him to deliver or return the money. Of course there are terms and conditions of Kickstarter. But parts of them might be overturned by courts. Especially if backers try to argue he was fraudulently misrepresenting possible risks and the current state of development in his kickstarter campaign.
Even if he would win this in the end. If only a couple of backers want out it would be way cheaper for him just to return their money instead of taking the risk of a lawsuit and the cost of having to pay a lawyer.
PS: Just writing "no refund, no guarantee" does not always save you from legal actions. If you sell a "5 year old bike, no refund, no guarantee" and the buyer later finds out it is actually 10 years old, you're screwed and have to refund them!