You mean like the Astronaut MMO that got all the press earlier this year, and now even the forums are gone?

Yes, that is the risk with Kickstarter and any other investment. It's just there seems to be less visibility into the viability of the company or person behind the project than most investments. Since I rarely go beyond the $20 range, I only feel mildly burned on the ones that don't go anywhere. For folks who hit the maximum (I've seen some with $10K options), I suspect the hurt is a little more real.