Comment The secret to Kickstarter and its ilk: (Score 1) 100
It's all about reputation. I backed Tim Schafer's adventure game because he has proven himself and everybody trusts him.
If someone is unknown, then the risk is higher and you should treat it as casino bet: you must assume the money will be lost, but if you're wrong, then it'll be a welcome surprise!
Kickstarter should also return their 5% fee on no-delivery projects so that their interests are aligned with the backers. A 5 cents on the dollar refund (minus transaction fees) is negligible while the company wants to use that money to grow
I think that taking that hit is worth it because it motivates kickstarter to improve their average success rate, and that's a good thing for the long term.