The story that
@djetok posted covers a lot.
In summary along with additional info:
Lily Started with $14m in venture capital
Took in another $34m in pre-orders
Not crowd or Kickstarter funded
HQ in SF, hired a lot of employees with mfg and robotics experience
Put out regular updates and conducted a beta program with 100 or so users
Noted on Social media near Xmas that they were on track to Start shipping in days
Dropped a bomb of an email on all customers who pre-ordered last night (Jan. 11)
Am I and others who pre-ordered going to get a full refund? Who knows but I doubt it. If they had $34m to refund its pre-order customers I don't see why they couldn't they just produce the Lilys and ship them instead. I just took a look at my order confirmation, I paid $568.31 ($499 for the copter the rest for tax and shipping) but would feel fortunate if I get just half back.
There are other better copters out there but not with the same features that the lily was supposed to have (e.g. Water resistant, buoyant, primarily self flying follow me based v. Requiring a lot of manual user control). The max camera resolution (1080) is now considered obsolete but it would have been fine with me and I'd bet a lot of others.
The air dog was crowd funded and has had some success. I cancelled my pre-order and got full refund ($1,200 ish) before the production units shipped, after nearly a two year wait, when the phantom 4 (my current quad copter) was released. Now the it sells on Amazon for $1,600 and people are claiming that post sales support does not exist. After these two experiences I will never pre-order or purchase a crowd funded product again.