When Fairfax Media visited the Collusion team at the Fishburners co-working space in the Sydney suburb of Ultimo in June 2012, the basic functionality of the pre-release demo product worked fine. This does not appear to have carried over to the final product
Through a spokesman, Mr Yearsley said the next release of the Collusion software - which included bug fixes and new features - was undergoing internal testing and would be released in due course. He accepted the company's communication "could have been better".
"Since Apple won't accept beta software to the App Store, the version that we had to release to our backers via the app store had to be basic but stable, with updates to come as we continue developing," he said.
The Australian Securities and Investments Commission (ASIC) warned in August last year of the risk of fraud carried out through crowd-funding sites and that funded projects may fail to deliver.
ASIC said it may have a role to regulate Australian-based crowd-funding sites but Kickstarter, the most popular site, is based in the US. While Collusion was developed in Sydney, it is a US company partly due to Kickstarter requiring project creators to be registered in the US or Britain.
Nick Abrahams, a partner with Sydney law firm Norton Rose, said Australians engaging with non-Australian crowd-funding sites were unlikely to have the benefit of our consumer protection legislation.
"It would be difficult for the ACCC or ASIC to claim any jurisdiction over these sites or the promoters that use the sites to get investment in their products," he said.
A CNNMoney examination of the top 50 most-funded projects on Kickstarter - which collectively raised $US40.3 million from more than 413,000 backers - found 84 per cent missed their target delivery dates. The analysis, published in December 2012, found 15 of them hadn't shipped at all and for those that had shipped the median delay was two months.
Kickstarter has stressed it is not a store and delays and changes to projects often occur, but while its terms and conditions require project creators to honour promised rewards, the site itself takes no responsibility for securing refunds.
One of Collusion's Australian backers, who did not want to be named, said it was her first Kickstarter pledge and she would "never, ever do it again", after receiving what she described as rude service from the company when trying to obtain support.
"It was horrific in a word, absolutely horrific," she said.
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