Public Service Reminder: Not all ads on social media are advertising real products

Anything crowdfunded online, i.e. bearing a “Preorder” buy button, should make you proceed with extreme caution – although some great products have indeed been started that way, there are now dozens of stories of products that collected fairly sizeable sums of money in advance and never saw the light of day – with that money disappearing into a black hole somewhere along the way.

Latest tale of woe is from Kanoa, a Silicon Valley startup that attempted to make a pricey pair of Bluetooth headphones and imploded in dramatic fashion after their first model was taken down by a brutal Youtube review. Check it out:

http://fortune.com/2017/08/27/headphone-startup-kanoa-youtube-review/

http://www.mercurynews.com/2017/08/26/crowdfunding-disaster-silicon-valley-startup-takes-customers-money-shuts-down/

Note of advice: if you ever feel that you really must crowdfund a product which doesn’t exist yet, you’re far better off if you (a) believe in it AND the founders personally, and (b) are ok with losing 100% of your money if it doesn’t work out. And be aware there’s a good chance it won’t, and a corresponding good chance you will…

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