[VikingCoder]

A) It's not an investment.

And B) their terms don't say anything like what you said:

Is a creator legally obligated to fulfill the promises of their project?

Yes. Kickstarter's Terms of Use require creators to fulfill all rewards of their project or refund any backer whose reward they do not or cannot fulfill. (This is what creators see before they launch.) This information can serve as a basis for legal recourse if a creator doesn't fulfill their promises. We hope that backers will consider using this provision only in cases where they feel that a creator has not made a good faith effort to complete the project and fulfill.

https://www.kickstarter.com/help/faq/kickstarter+basics

[seanflyon]

I completely agree, but I think that it feels a lot more like an investment than a purchase. When I buy something it is because I want it more than I want my money. When I kickstart something it is because I want something that is not real to become real. I'm willing to risk wasting my money because I want cool people to do a cool thing. If they try hard and fail, I don't feel like they owe me anything else.

[Cakez0r]

If the company has burned through all their money though, it's kinda hard to draw blood from a stone...

[res0nat0r]

Since they've setup an LLC apparently, the end developers won't be held personally liable (and I don't think they shouldn't be), so if it comes to a lawsuit and there isn't any cash left to refund, that will be the end of it.