They seem to actually have support from some of the hardware manufacturers. From Update #31 "Much gratitude goes out to the component manufacturers who really “got it” (Xilinx, Analog Devices, Intersil, Micron, Microchip, Samtec all deserve special thanks). Without their help we would be losing $100 per board!"

So, the backers are getting a Very Good Deal, with the hopes that a successful launch will make demand high enough to make the $99 viable with volume.