Indiegogo

Definition

Indiegogo is a popular crowdfunding platform that allows individuals and organizations to raise funds for various projects by soliciting contributions from a large number of people, typically via the internet. This platform supports diverse campaigns, ranging from creative ventures and product launches to community initiatives, helping entrepreneurs and innovators bring their ideas to life without traditional financing methods.

5 Must Know Facts For Your Next Test

1. Indiegogo was founded in 2008, making it one of the first crowdfunding platforms available and has since helped fund thousands of projects across various industries.
2. Campaigns on Indiegogo can be flexible or fixed; flexible campaigns allow creators to keep funds raised even if they don’t meet their goal, while fixed campaigns require reaching the goal to collect funds.
3. Indiegogo supports a wide range of categories including technology, film, art, and social causes, making it a versatile platform for various project types.
4. Creators on Indiegogo often use social media and other marketing strategies to promote their campaigns and reach potential backers effectively.
5. Indiegogo also offers additional services like InDemand, which allows successful campaigns to continue raising funds even after the initial campaign period ends.

Review Questions

• How does Indiegogo differentiate itself from traditional funding methods for entrepreneurs?
  • Indiegogo provides a platform that allows entrepreneurs to raise funds directly from the public, bypassing traditional financing methods such as bank loans or venture capital. This democratizes the funding process, enabling individuals to gain support for their projects based on public interest rather than just financial backing from a few investors. Moreover, with options for flexible and fixed funding, Indiegogo gives creators the ability to adapt their fundraising strategy based on their needs and goals.
• Discuss the impact of Indiegogo on the success rates of new startups and creative projects.
  • Indiegogo has significantly increased the success rates of new startups and creative projects by providing access to a global audience willing to support innovative ideas. The platform allows creators to validate their concepts through pre-orders and feedback from backers before committing substantial resources. By leveraging community support and building a network of potential customers, many projects have gained traction that might have otherwise struggled in traditional markets.
• Evaluate the long-term implications of using Indiegogo for entrepreneurs regarding funding sustainability and customer relations.
  • Using Indiegogo can have profound long-term implications for entrepreneurs concerning funding sustainability and customer relations. By engaging directly with backers during the crowdfunding process, entrepreneurs can build a loyal customer base that is invested in their success. This not only aids in initial funding but also fosters ongoing relationships that can lead to repeat customers and brand ambassadors. However, it’s crucial for entrepreneurs to maintain transparency and deliver on promises made during campaigns to ensure continued trust and support in future endeavors.

Related terms

Crowdfunding: A method of raising capital through the collective effort of friends, family, customers, and individual investors, often via online platforms.

Equity Crowdfunding: A type of crowdfunding where investors receive equity or shares in the company in exchange for their investments, allowing them to become partial owners.

Rewards-based Funding: A crowdfunding model where backers receive specific rewards or incentives based on their contribution level, instead of financial returns or equity.