Indiegogo

Definition

Indiegogo is a crowdfunding platform that allows individuals and organizations to raise funds for projects, products, or causes by collecting contributions from a large number of people, typically via the internet. This platform connects entrepreneurs and innovators with potential backers who are interested in supporting new ideas and initiatives, making it a popular choice for startups and creative ventures looking for alternative funding sources.

5 Must Know Facts For Your Next Test

1. Indiegogo was launched in 2008 and is one of the oldest crowdfunding platforms, helping thousands of projects gain funding since its inception.
2. Unlike some other crowdfunding sites, Indiegogo offers both flexible and fixed funding options, allowing creators to keep funds raised even if they don’t reach their target goal.
3. The platform supports a wide variety of projects, including tech innovations, creative arts, social causes, and community-driven initiatives.
4. Backers on Indiegogo can contribute to projects at different levels and often receive unique perks based on their contribution amounts, enhancing community engagement.
5. Indiegogo has an international reach, allowing project creators from around the world to connect with global backers interested in diverse ideas.

Review Questions

• How does Indiegogo differentiate itself from other crowdfunding platforms in terms of funding options?
  • Indiegogo stands out by offering both flexible and fixed funding options. With flexible funding, creators can keep any money raised even if they don't meet their campaign goal, providing a safety net for entrepreneurs. In contrast, fixed funding requires campaigns to reach their target goal to access any of the funds raised. This flexibility caters to different project needs and risk tolerances.
• Discuss the role of perks in Indiegogo campaigns and how they impact backer engagement.
  • Perks play a crucial role in Indiegogo campaigns by providing incentives for backers to contribute. These rewards can vary from exclusive products to experiences related to the project. By offering tiered perks based on contribution amounts, creators enhance backer engagement and encourage higher contributions. This strategy not only fosters a sense of community but also motivates supporters to spread the word about the campaign.
• Evaluate the implications of Indiegogo's global reach for project creators and potential investors.
  • Indiegogo's global reach opens up opportunities for project creators to tap into diverse markets and attract backers from various cultural backgrounds. This international exposure can lead to more substantial financial support and valuable feedback. For investors, it presents a chance to discover innovative projects from around the world that may not be available through traditional investment avenues. However, it also poses challenges such as navigating different regulatory environments and understanding varying market dynamics.

Related terms

Crowdfunding: A method of raising capital where funds are collected from a large number of people, typically through online platforms, to support a project or venture.

Perks: Rewards or incentives offered to backers on crowdfunding platforms in exchange for their financial support, often tiered based on the amount contributed.

Campaign: The organized effort on a crowdfunding platform where project creators present their ideas, set funding goals, and promote their initiatives to attract backers.