Indiegogo

Definition

Indiegogo is a crowdfunding platform that allows individuals and organizations to raise funds for projects, products, or causes by collecting small contributions from a large number of people online. It connects entrepreneurs and creatives directly with potential backers, enabling them to showcase their ideas and gain financial support, often in exchange for perks or rewards. This model is part of the broader trend of alternative funding sources that empower independent creators and foster innovation.

5 Must Know Facts For Your Next Test

1. Indiegogo was founded in 2008 and has since become one of the largest crowdfunding platforms, hosting campaigns across various categories including technology, film, music, and social causes.
2. Unlike some crowdfunding platforms, Indiegogo offers flexible funding options, allowing campaigners to keep the funds raised even if they do not reach their initial funding goal.
3. Campaigns on Indiegogo can be set up as either fixed or flexible funding, giving creators the ability to choose how they want to structure their fundraising efforts.
4. Indiegogo also provides additional resources and support for campaigners, including marketing tips, analytics tools, and access to a community of backers.
5. The platform has been instrumental in launching several successful products and creative projects, showcasing how crowdfunding can democratize access to capital for innovators.

Review Questions

• How does Indiegogo differentiate itself from other crowdfunding platforms in terms of funding options?
  • Indiegogo stands out by offering both fixed and flexible funding options. Fixed funding means that a campaign must reach its goal to receive any funds raised, while flexible funding allows campaigners to keep whatever amount they raise, regardless of reaching the goal. This flexibility can be beneficial for creators who want to mitigate risks and still fund their projects even if they fall short of their initial target.
• Discuss how Indiegogo empowers independent creators through its crowdfunding model.
  • Indiegogo empowers independent creators by providing them with a platform to connect directly with potential backers who share an interest in their projects. This model eliminates traditional barriers to funding, allowing creatives to showcase their ideas without needing to rely solely on investors or banks. By facilitating access to capital through community support, Indiegogo enables innovators to launch projects that might not otherwise receive financing.
• Evaluate the impact of Indiegogo on the landscape of alternative funding sources and how it influences project development.
  • Indiegogo has significantly impacted the landscape of alternative funding sources by democratizing access to capital and enabling diverse project development across various sectors. Its success stories inspire more individuals to pursue entrepreneurial ventures without traditional investment avenues. Moreover, the platform fosters innovation by encouraging collaboration between creators and backers, leading to unique products and initiatives that cater to niche markets. This shift not only challenges conventional financing models but also reshapes consumer engagement by involving them early in the product development process.

Related terms

Crowdfunding: A method of raising money for a project or venture by soliciting small contributions from a large group of people, typically via the internet.

Equity Financing: A way to raise capital by selling shares of ownership in a business, allowing investors to share in the profits and losses.

Reward-Based Funding: A type of crowdfunding where backers receive non-financial rewards, such as products or experiences, in exchange for their financial support.