Indiegogo

Definition

Indiegogo is a crowdfunding platform that allows individuals and organizations to raise money for projects, products, or causes through contributions from the public. It connects entrepreneurs and creators with potential backers who can support their ideas financially, often in exchange for rewards or perks, creating a direct line of funding that bypasses traditional financial institutions.

5 Must Know Facts For Your Next Test

1. Indiegogo was founded in 2008 and has since become one of the leading crowdfunding platforms globally, supporting various types of projects including technology, art, and community initiatives.
2. Unlike some other crowdfunding platforms, Indiegogo offers flexible funding options, allowing creators to keep funds even if they don’t reach their initial funding goal.
3. The platform supports both individual campaigns and equity crowdfunding, which allows investors to purchase shares in a startup.
4. Indiegogo has a global reach, enabling campaigns to be launched from anywhere in the world and attract backers from diverse locations.
5. The site features various tools and resources for campaigners to help them create effective pitches, market their projects, and engage with potential backers.

Review Questions

• How does Indiegogo differentiate itself from other crowdfunding platforms?
  • Indiegogo differentiates itself primarily through its flexible funding option, which allows project creators to retain any funds raised even if they don't meet their full funding goal. This is in contrast to all-or-nothing models like Kickstarter, where funds are only collected if the project hits its target. Additionally, Indiegogo supports a wider range of project types and offers tools to assist creators in marketing their campaigns effectively.
• What role does rewards-based funding play in the success of campaigns on Indiegogo?
  • Rewards-based funding is crucial for attracting backers on Indiegogo as it incentivizes contributions by offering tangible perks in return. This model not only helps creators engage potential supporters but also builds a community around the project. The types of rewards can range from thank-you notes to exclusive products, motivating backers to contribute at different levels depending on what they find appealing.
• Evaluate the impact of Indiegogo's global reach on crowdfunding trends and entrepreneurial efforts.
  • Indiegogo's global reach has significantly transformed crowdfunding trends by democratizing access to capital for entrepreneurs worldwide. This inclusivity allows diverse ideas from various cultures and regions to gain visibility and support. Moreover, as more projects are launched internationally, it fosters a competitive environment that encourages innovation and creativity. The ability for anyone with an idea to connect with potential backers across the globe is reshaping how startups approach funding and market entry.

Related terms

Crowdfunding: A method of raising capital by collecting small amounts of money from a large number of people, typically via the internet.

Rewards-based funding: A type of crowdfunding where backers receive non-financial rewards or perks in exchange for their contributions.

Kickstarter:

Another popular crowdfunding platform, similar to Indiegogo, that focuses on creative projects and offers an all-or-nothing funding model.