The terms of funding on Kickstarter are pretty clear and straightforward. You back a project for a certain amount of money in exchange for a promised reward (this reward is never equity). When the time comes you either get your reward or you get your money back. Simple as that.
Has this ever happened? I was under the impression that the funds raised through Kickstarter are spent on the kickstarted projects. If after spending the money, the project "fails", how can there be a refund?
