> Which is why many startups fail: people have no idea what they are getting themselves into. At least burning through your own money teaches a harsh lesson. Burning through free money hurts a lot less.

Couldn't agree more. I agree crowdfunding should require a little more upfront from the project managers (or rather we as a community should refuse to fund projects that don't) which will no doubt turn some people away from seeking crowdfunded money but that's probably for the best.