2. How many bike shops do you think you can cover in your tour? How many orders of magnitude more effective do you think your site would be if that money was instead invested in other promotional means, rather than visiting a dozen bike shops in a dozen cities, for example?
3. If police are so over-worked in a jurisdiction that that's how you have to contact them to file a report (versus the hundreds or thousands of municipalities that allow online report filing), what makes anyone think that giving them the ability to view a stolen bike report on your website is going to be more effective? I'm also relatively certain that a third party who encounters an /allegedly/ stolen bike has no real option to "repossess it".
4. You're right, I don't have to like it. And maybe if you get to $200,000 of funding, /that/ stretch goal can be "our team of eight will visit one bike store in every one of the 289 US cities with a population of over 100,000". It's quite close to the least effective possibly imaginable method of promoting such a service. You could take out full page ads in multiple bike magazines, sponsor events, and the like. But that might mean your team doesn't get to go on a road trip from San Francisco to New England.
5. If registration is $6.99 for me to do it myself, or go to a bike shop and do it for free (something I probably do regularly as a bicyclist), where is any incentive to do so? Or, as you mention POS integration, perhaps it's only free if you do it when you buy a bike. Or "if it's already stolen" (better hope you already wrote down the serial), somewhat edge cases.