The 'real' way of doing business?
The 'most common' way of doing business is to get investors to fund your business venture, and hope that you are able to pay them back when your product sells. Leaving leaving you, and your small number of investors VERY vulnerable to loosing a LOT of money.
The crowd funding way of doing business is to accept customer pre-orders as the loan for your business, leaving only your customers vulnerable to loose a fraction of the total investment, if you don't deliver what you promised.
I do not understand people who are so angry about crowd funding and pre-orders as a way to do business. I don't know anything about the specific company your talking about (jersey Jack) but if it smells fishy and he is asking for more and more without delivering a product, don't invest in him. It's that easy. Complain about the business, not the business model.