The real challenge lies in licensing. For this product to actually exist in the marketplace, they'll need to complete a licensing agreement with Niantic Labs, something that is not currently in place. Not getting that in place would tank the project as presented. That makes funding their project a risky proposition.
But the creators aren't hiding this. If the project is successfully funded (they've already passed the goal) and the license doesn't come through, they say they will refund funders less a 10 percent processing fee or funders can get the device when it's integrated into other not yet named games. It just wouldn't work with Pokémon Go.