Okay, the other thing I have to comment about is that if you REALLY want people to know about this, you need to make a video in the style of say, Harry Potter seventh book part two - a dramatic mass battle/one on one duel using your product with expensive looking production values (not necessarily actually expensive) and costumes, kind of like that one group that made those "realistic" street fighter videos with the choreography, not that you actually need that level of professionalism, just the impact. You ideally want something that potential backers could IMAGINE when looking at your product. Well, actually what you ideally want is a group that plays in public with video documentation and blogs in order to draw other people into the spectacle and get them engaged in thinking about your game, just demonstrating the actual systems and juicy bits in general. But, lacking that, you still need one GOOD video that cuts out the business chat and just straight up appeals to the heart of the matter.
With 21 days left on your project, you don't really have time to spare because the price to buy in is pretty steep, and isn't as well documented as the epaper watch which everybody seems to be in love with. You need to let people into your world and demonstrate what your idea means past a dispassionate youtube speech, especially because of that pricing.
On that note, it wouldn't really....hurt if you were able to start at a lower point of entry, like say, cheaper wands with more limited capabilities which are synced with the more expensive ones (they would interact through the same smartphone with the main wand acting as a hub, which means the lesser wands wouldn't have a display) which would allow groups to form with one person able to afford the full wand which the cheaper wands are allied with, enabling greater amounts of people to participate without forcing them to buy the whole thing right away.
As for audio, the problem with earphones is that they separate you from the actual experience. When you're being an "actual magic" user, that sound when you fire off or just make any kind of motions with your wand should be immediately accompanied by threatening or awe inspiring sound COMING FROM THE SOURCE, and not the phone. (I also noticed that your prototype only makes noise once the spell has absorbed the cue and triggers in a noticeable delay, instead of pulling forth like a bullet from a gun charged with otherworldly powers.) When you are holding an instrument of power, you want everybody to know who is in control (except for the silent casters, of course). In addition, it's also important for people in real time combat to be able to hear environmental sounds in general, both for the immersion, and to be able to perhaps pick up on some additional cue that their opponent is nearby. The only alternative I can see to that is generating simulated cues from the presence and direction of opponents, but that feels too....artificial compared to what you could be cribbing from real life for free.
On the colored LED thing....while it is one thing to hear magic, the other benchmark for magic is bright lights and flashes. Without it, you look like you're waving funny sticks at each other that make sound effects. The distinction here is that you have pretty good control over how the lights are operated, so you aren't just making it flash like a neon sign or a cheap mass produced toy, the lights will actually show stuff like energy converging into a single point, and then letting loose in a pulse.