Indiegogo

Definition

Indiegogo is a crowdfunding platform that allows individuals and organizations to raise funds for various projects, products, and causes. It empowers creators to connect directly with potential backers, facilitating support for innovative ideas and ventures, often in exchange for perks or rewards. This model of funding highlights the significance of user-generated content by enabling creators to present their projects and engage an audience eager to contribute to new and exciting initiatives.

5 Must Know Facts For Your Next Test

1. Indiegogo was launched in 2008 and has since become one of the largest crowdfunding platforms, hosting a wide variety of projects across different categories.
2. Unlike some other crowdfunding sites, Indiegogo offers flexible funding options, allowing creators to keep whatever funds they raise even if they do not reach their original goal.
3. The platform supports both personal projects and charitable causes, reflecting a diverse range of interests and community-driven initiatives.
4. Indiegogo has introduced features like 'InDemand,' which allows successful campaigns to continue raising funds even after the initial campaign period ends.
5. Indiegogo has played a crucial role in the launch of numerous successful products and startups, showcasing how user-generated content can drive innovation and market validation.

Review Questions

• How does Indiegogo facilitate user-generated content in the crowdfunding process?
  • Indiegogo facilitates user-generated content by allowing creators to showcase their projects directly to potential backers. This connection empowers individuals to present their innovative ideas through videos, images, and detailed descriptions, engaging an audience eager to support new ventures. By enabling direct interaction between creators and backers, Indiegogo not only raises funds but also fosters community involvement in the development of unique projects.
• Compare Indiegogo's funding model with that of Kickstarter, focusing on the implications for project creators.
  • Indiegogo's funding model offers flexible options where creators can retain the funds they raise even if they do not meet their initial goals, unlike Kickstarter's all-or-nothing approach. This flexibility can reduce financial risk for creators while still allowing them to gain valuable exposure. However, it may also lead to less urgency for backers to contribute since the project can proceed with whatever amount is raised. The differences in these models highlight how each platform approaches crowdfunding and impacts creators' strategies.
• Evaluate the impact of Indiegogo on small businesses and entrepreneurial ventures, particularly regarding user-generated content and community engagement.
  • Indiegogo has significantly impacted small businesses and entrepreneurial ventures by providing a platform for raising capital without traditional barriers such as loans or investor requirements. This democratization of funding allows innovators to test their ideas directly with consumers, fostering a sense of community engagement through user-generated content. As backers become part of the project’s journey by contributing financially and providing feedback, it creates a collaborative environment that supports innovation and drives market validation for new products and services.

Related terms

Crowdfunding: A method of raising capital through the collective efforts of a large number of people, often via online platforms.

Kickstarter: Another popular crowdfunding platform that focuses primarily on creative projects, requiring funding goals to be met before funds are distributed.

Perks: Rewards or incentives offered to backers in return for their financial support on crowdfunding platforms.