A $3.6 million Kickstarter campaign for a drone, one of the largest crowdfunding efforts of all time, has come crashing down.
Despite raising all that money from 12,000 backers, the project missed its June 2015 delivery deadline. Now, a week after its CEO left the company, the Torquing Group has decided to cut its losses on the “Zano” drone project, reports Quartz.
While the project’s fundraising success spoke to the popularity of two trendy things these days—selfies and drones—it just couldn’t get off the ground. The company told backers that it was turning over liquid assets to its creditors.
Though the language used by the company implies that the funders may receive a portion of their money back, it’s important to remember they’re not creditors. Kickstarter doesn’t sell goods or equity—only promises, so backers aren’t really owed anything. Let this be another lesson to crowdfunders: Even the most seemingly successful of projects has no guarantee.