Well, that's why the business plans are key. I've looked at kickstarter - agree, it can be janky, but you have to really scrutinize the business plan.
In this case I'd suggest the person has been less than successful already because Ann went, looked and had more questions than she had answers. I did the same. That tells you the business plan likely needs some more work to raise $10K. The really good business plans tell you exactly, down to the dollar, what the money is for, how they're raising it, what the package's retail value is and what the margin is that's going towards this funding. They have a marketing plan, a budget, and all the other standards of starting a business.
I don't think kickstarter is bad - I just think people who want to raise thousands of dollars need to put the groundwork in so that people have faith in them and what they're doing. I'd consider doing it, but I'm more likely to get a line of credit - timing is easier to predict, though you can't raise as much $. kickstarter is loaded with examples of the customer gift package being worth loads less than offered to raise $.
One note of caution - this company should consider possible legal exposure putting "hottest sauce you will ever have" on the label - someone who truly has the tested/authenticated "hottest sauce" would likely take issue with that.
Also the accuracy of information this company has may not be the best. For example, my co-packer did the testing after the fact, and it was only ~$200 for all 3 varieties. You might be getting ripped off by your lab and/or may not have accurate information - make sure you shop around and speak to other co-packers/labs.
As SL mentioned, there's a ton of really solid info on starting a company, testing, manufacturing & labeling standards, etc here at THP in the business and marketing forums.
Good luck with your project.
