Indiegogo

Definition

Indiegogo is a crowdfunding platform that allows individuals and businesses to raise funds for various projects by collecting contributions from a large number of people, typically via the internet. It supports both creative projects and entrepreneurial ventures, providing users with tools to promote their ideas and connect with potential backers. This platform embodies the principles of crowdsourcing by enabling project creators to leverage community support to bring their visions to life.

5 Must Know Facts For Your Next Test

1. Indiegogo was founded in 2008 and was one of the first crowdfunding platforms to gain widespread recognition, helping creators raise millions of dollars for their projects.
2. Unlike some platforms that focus on specific types of projects, Indiegogo allows for a diverse range of categories including technology, film, music, and social causes.
3. The platform offers both fixed and flexible funding options, allowing project creators to choose whether they want to keep all funds raised or only if they meet their goal.
4. Indiegogo features an 'InDemand' program that lets successful campaigners continue raising funds even after their initial campaign has ended.
5. The platform has expanded its services to include tools for marketing and campaign management, helping users to effectively engage with potential backers.

Review Questions

• How does Indiegogo's approach to crowdfunding differ from traditional financing methods for projects?
  • Indiegogo's approach allows creators to gather funding directly from the public instead of relying on banks or venture capitalists. This democratizes funding by giving ordinary individuals the opportunity to support projects they believe in, regardless of their financial background. Additionally, it fosters a community around the project, as backers can provide feedback and engage with creators during the campaign.
• Evaluate the impact of Indiegogo on entrepreneurs seeking funding compared to other crowdfunding platforms.
  • Indiegogo has significantly broadened the landscape for entrepreneurs by offering flexible funding options and a diverse range of project categories. Compared to other platforms like Kickstarter, which primarily focuses on creative projects, Indiegogo's inclusivity allows for more innovative ventures. This flexibility can attract a wider audience of potential backers and enables entrepreneurs to adjust their campaigns based on feedback and market demand.
• Analyze how Indiegogo's features influence the success rate of crowdfunding campaigns compared to more traditional business funding options.
  • Indiegogo's user-friendly platform provides essential tools for marketing and campaign management, which can greatly enhance a creator's chance of success. Unlike traditional funding options that may require extensive pitching or negotiations, Indiegogo allows direct engagement with potential backers through social media and email updates. This transparency and community involvement can lead to higher trust and investment from backers. Furthermore, the ability to continue raising funds through the 'InDemand' feature keeps projects alive beyond their initial launch period, creating ongoing financial opportunities.

Related terms

Crowdfunding: The practice of funding a project or venture by raising small amounts of money from a large number of people, often via the internet.

Equity Crowdfunding: A type of crowdfunding where investors receive equity or shares in the company in exchange for their investment, rather than just rewards.

Rewards-based Funding: A crowdfunding model where backers contribute funds in exchange for rewards, such as early access to products or exclusive merchandise.