Hundred-thousand dollar Kickstarter cancelled amid threats and anger

Do we have to get used to the occasional failure?

A major Kickstarter campaign has fallen apart amid disputes between its founders, leading to accusations of fraud from its backers and renewing concerns over how the site deals with projects which fail to deliver what they promised.

Erik Chevalier, as part of a start-up board game company called The Forking Path, raised $122,874 to create The Doom That Came To Atlantic City, a inventive twist on Monopoly which sees players taking the role of Lovecraftian gods and destroying Atlantic City (the setting of the American version of Monopoly) in an effort to instigate hell on Earth.

The total raised was three-and-a-half times what the group had asked for, and let them promise increasingly intricate (and expensive) stretch goals, from new pieces in the game and rules additions to free stickers and artwork. In June last year they finished fundraising, and settled down to get the work done. The delivery of the game was estimated as November that year, and, although communication was fairly regular, that delivery date was missed. As late as June this year, the Chevalier confirmed that "the project is moving along" with a release this autumn. Then, this Wednesday, he announced the sudden cancellation of the whole thing:

After much deliberation I've had to make this decision. I've informed Keith and Lee and neither at all happy with this situation. Every possible mistake was made, some due to my inexperience in board game publishing, others due to ego conflicts, legal issues and technical complications. No matter the cause though these could all have been avoided by someone more experienced and I apparently was not that person.

The comments below the post contain a lot of angry people – which is unsurprising, given that amongst the backers are seven people who pledged at least $500, three who pledged $1000, and one backer who offered $2,500, in return for the designers hosting an afternoon of gaming and taking them out "to dinner at a fancy restaurant in Portland". Backers are trying to get the press involved, filing fraud complaints with the Oregon government, and demanding refunds – which Chevalier has promised to give, although the question of where the money to do so will come from remains unclear.

The designers of the game themselves have also weighed in. Keith Baker writes:

Lee and I don’t know exactly how the money was spent, why the backers were misled, what challenges were faced or what drove the decisions that led to the cancellation of the game. Not only did we not make any money from the game, we have actually lost money; as soon as we learned the true state of affairs, we engaged a lawyer to compel The Forking Path to come forward to the backers and to honor its pledge to issue refunds.

At this time, it's unclear how Forking Path is going to go ahead. Chevalier has issued a second statement, reiterating his intention to provide refunds, and Baker is preparing to provide a "print and play" version of the game – but someone is going to lose a lot of money whatever happens. Even if Forking Path hadn't spent a penny, 10 per cent of the funds received go straight to Kickstarter and Amazon; either the backers are out-of-pocket, or the company is.

This type of failure is going to get more and more common as Kickstarter grows, if only because the sheer numbers game means that there'll be more chances for catastrophe. In addition, there's an indeterminate amount of "zombie projects" at any one time – ones which aren't ever going to deliver what they've said, but haven't actually come clean to their backers about that. Given delays in delivery of up to a year are relatively common on the site, there could be a whole lot of people slowly realising that they aren't getting what they were promised.

It puts the company itself in an awkward place. Its success is built on customers' perception of it as a sort of Etsy-with-preorders, where you are buying concrete goods, just a little in advance. And the terms and services of the site back that up, with requirements for refunds in the event of non-delivery. But funding creative projects is an inherently risky thing. What can go wrong probably will, and if a creator hasn't budgeted for that, they're going to get burned.

That doesn't make it any nicer when something you feel you've "bought" never turns up; but it may be a fact we all have to get used to if Kickstarter is sticking around.

The Doom That Came to Atlantic City. Photograph: Kickstarter

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.