[ponker]

It absolutely is free capital, in the same way that a 0% interest bank loan would be free capital. You don't have to give any interest, any equity, or any collateral in case of failure. How much freer does capital get?

[tomhoward]

Reputation has a value, and companies/founders who fail to deliver on a crowdfunding campaign incur a huge reputational cost.

Investors are far more willing to support founders after an earlier failure than crowdfunding customers are after an unfulfilled campaign.