Business Incubation and Acceleration

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Indiegogo

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Business Incubation and Acceleration

Definition

Indiegogo is a crowdfunding platform that allows individuals and organizations to raise funds for various projects, products, or causes by soliciting contributions from a large number of people, typically via the internet. It offers flexible funding options and is popular for creative endeavors, startups, and social causes, facilitating access to capital that might not be available through traditional financing methods.

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5 Must Know Facts For Your Next Test

  1. Indiegogo was founded in 2008 and has since become one of the largest crowdfunding platforms globally, alongside Kickstarter.
  2. The platform allows campaigns to choose between fixed funding, where funds are only collected if the goal is met, and flexible funding, where funds are retained regardless of reaching the goal.
  3. Indiegogo supports a wide range of projects, from tech gadgets and creative arts to charitable causes and community initiatives.
  4. Campaigns on Indiegogo can vary widely in scope, with some projects raising thousands of dollars while others can raise millions.
  5. The platform provides various tools and resources for campaigners, including marketing support and analytics to track campaign performance.

Review Questions

  • How does Indiegogo differentiate itself from other crowdfunding platforms in terms of funding options?
    • Indiegogo offers both fixed and flexible funding options, allowing campaigners to choose how they want to handle funds raised during their campaigns. Fixed funding means that funds are only collected if the project meets its goal, while flexible funding allows campaigners to keep whatever funds they raise, regardless of whether they hit their target. This flexibility can make Indiegogo attractive for different types of projects and fundraisers.
  • Evaluate the potential benefits and drawbacks of using Indiegogo for startups seeking funding.
    • Using Indiegogo can provide startups with immediate access to capital without giving up equity or incurring debt. It also allows them to validate their ideas by gauging public interest before launch. However, there are drawbacks such as the need for effective marketing to attract backers and the possibility of not reaching the desired funding goal. Additionally, startups must manage expectations and deliver on promises made to backers.
  • Assess how Indiegogo has impacted the landscape of alternative financing options for entrepreneurs and creators.
    • Indiegogo has significantly transformed the landscape of alternative financing by democratizing access to capital for entrepreneurs and creators who may struggle with traditional funding avenues like banks or venture capital. By enabling individuals to raise funds directly from supporters, it fosters innovation and creativity while also allowing backers to play an active role in supporting projects they believe in. This shift not only empowers creators but also encourages community engagement and collaboration around new ideas.
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