[hahnfeld]

Of course it's a problem. That's what happens when you create expectations that 100% of fully funded projects are going to go on to completion (leaving along the murky middle ground of completed but sucking terribly.)

VC's, who are professional investors and certainly better versed than the general public on how to triage projects going sideways probably have ~5% of projects totally fail, where the product never reaches production.

Kickstarter needs to manage expectations and have a solid policy on how to deal with situations like this... else, they'll be the next failure.