Rejected By VCs, Pebble Watch Raises $3.8M on Kickstarter:

Then he hit a roadblock. A big one. Migicovsky couldn’t raise more money. Few investors were interested in betting on a hardware startup, or dealing with the headaches that often come with manufacturing goods.
So Migicovsky posted his watch on Kickstarter, a “crowd-funding” website where anyone can pledge money for creative projects that have yet to be completed. In the last few days, roughly 26,000 people plunked down their cash, with many pledging hundreds of dollars and about a half dozen folks promising $10,000 or more.