funding, crowd-fundingWe are using Indiegogo for our campaign. My partner wants to use flexible funding. I would prefer fixed funding so we only use the money of we can get fully funded as what good is partial funding if we can’t make a prototype from it?
How to protect myself if the campaign doesn’t meet it’s goal and if my partner just uses the money for whatever he wants?
Even if we do get the funding, how to protect myself in case we can not deliver?
Keep in mind that my partner doesn’t want to register as a corporation yet (until after the campaign) as it costs $2000 and we don’t have the money yet.
Can those who gave funds try to sue us for whatever they gave us?
There are plenty of services to help you incorporate for under $100 - try Legalzoom or Google for other lower priced options. You should incorporate before starting the campaign.
Partial funding works as long as you are selling the product for more than the cost of the prototype.
You cannot protect yourself if your partner takes off with the money. If you don’t trust your partner, you should not move forward. And yes, you could be subject to lawsuits and court if there is fraud. Read up on Indiegogo’s site.
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