What happens if a crowdfunding project fails to fulfill its obligations?

Question

Crowdfunding

Hello!
The question is - what happens if a project has successfully raised funds on IndieGoGo under the obligation to manufacture and ship some device, but failed to fulfill its obligations?
That is, due to:
- inexperience of startups,
- overlays and delays with the factory,
- ideological strong shortcomings
, the project simply cannot be completed, and in the amount of money raised, for example, obligations for 1000 devices (plus small things for $1, $2, like adding names of sponsors on the site page).
After all, there are situations when an inventor, a start-up can create an interesting prototype, but he may simply not have the skills to manage a business, production, especially distributed around the world. As a result, people believed him, sponsored him in the expectation that they were the first in line for ready-made devices, but the startup failed - he spent the money incorrectly, the factory did not produce exactly what was needed, a mass sample cannot be created within the budget or production technologies .
The author of the project becomes bankrupt?
Or returns what has not yet been squandered, at least partially repaying the costs of the bakers?
Or going to take out a loan from the bank, paying the full cost of IndieGoGo's money?
Please explain this point, who faced or heard about similar situations with crowdfunding.
Thank you!

Answer 1

It does nothing, in fact it is a venture business.

Answer 2

Karma goes bad, and that's how you usually get away with it.