[paulgerhardt]

I think there are plenty of reasons one does not see more hardware startups, but I would argue that 'lack of funds' is more likely being used as an excuse to mask deeper problems.

One can expect bad things in any venture where the development costs exceed the expected return. If anything, this would be an argument for general purpose computing and not shouldering the cost of developing an ASIC.

If you would like to see a Kickstarter with better project accountability and a hardware focus I suggest looking at Christie Street: https://christiestreet.com