Indiegogo

Definition

Indiegogo is a crowdfunding platform that enables individuals and organizations to raise funds for a variety of projects, including creative endeavors, technology innovations, and community initiatives. It allows project creators to present their ideas to a global audience, set funding goals, and offer rewards or perks to backers. This platform is a significant player in digital fundraising, facilitating the connection between entrepreneurs and potential supporters.

5 Must Know Facts For Your Next Test

1. Indiegogo was founded in 2008 and has since become one of the largest crowdfunding platforms, alongside Kickstarter.
2. Unlike some other crowdfunding sites, Indiegogo allows project creators to keep funds raised even if they do not reach their funding goal.
3. Indiegogo supports both fixed funding (all-or-nothing) and flexible funding (keep what you raise) options for campaigners.
4. The platform features a wide range of categories for fundraising, including tech, film, music, health, and social causes.
5. Indiegogo also offers additional resources for campaigners, such as marketing tools and analytics to help improve campaign success.

Review Questions

• How does Indiegogo differ from traditional fundraising methods?
  • Indiegogo stands out from traditional fundraising methods by leveraging the power of the internet to reach a global audience and allowing creators to raise funds directly from individuals. Unlike conventional methods that often rely on large donations from a few individuals or organizations, Indiegogo encourages small contributions from many backers. This democratization of fundraising opens opportunities for diverse projects that might not receive funding through traditional channels.
• Evaluate the advantages and disadvantages of using Indiegogo for fundraising compared to other crowdfunding platforms.
  • Using Indiegogo has its advantages, such as flexibility in funding options and a broad audience reach. Creators can choose between fixed or flexible funding models, which can cater to different project needs. However, disadvantages include potential competition with numerous campaigns on the platform and the need for effective marketing strategies to stand out. Unlike some platforms that focus on specific niches, Indiegogo’s broad categories may lead to projects being lost among many similar initiatives.
• Assess the impact of Indiegogo on entrepreneurship and community-driven projects in today’s economy.
  • Indiegogo has significantly influenced entrepreneurship and community-driven projects by providing accessible funding avenues that were previously limited. By enabling creators to showcase their ideas directly to potential backers, it fosters innovation and encourages grassroots initiatives. This shift not only empowers individuals but also enhances community engagement and collaboration. In an economy where traditional funding can be scarce, Indiegogo plays a vital role in driving creativity and supporting diverse causes.

Related terms

Crowdfunding: The practice of raising small amounts of money from a large number of people, typically via the internet, to fund a new business venture or project.

Rewards-based funding: A crowdfunding model where backers receive non-financial rewards, such as products or services, in exchange for their financial support.

Peer-to-peer fundraising: A method where individuals raise money on behalf of an organization or cause by reaching out to their personal networks.