Manny’s Cookies, LLC wants to launch a Kickstarter Campaign to crowdfund a new product line. All backers who fund the project will receive 1% equity for each US$1000 funded, up to a total of 5% equity. Kickstarter has told Manny’s Cookies the project will not be allowed because it violated the Kickstarter rules. Which rule was violated?
Kickstarter does not allow monetary rewards or equity in a company as incentive to back a project.
Only startups can use Kickstarter, not established companies.
Only companies that are incorporated, not limited liability companies, can launch projects on Kickstarter.
The project was not honestly presented.
