Indiegogo

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Indiegogo
Indiegogo logo.png
Web addresswww.indiegogo.com
Type of siteCrowd funding
Available inEnglish, German, French, Spanish
Launched2008
Current statusactive
 
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Indiegogo
Indiegogo logo.png
Web addresswww.indiegogo.com
Type of siteCrowd funding
Available inEnglish, German, French, Spanish
Launched2008
Current statusactive

Indiegogo /ˌɪndiˈɡɡ/ is an international crowdfunding site founded by Danae Ringelmann, Slava Rubin, and Eric Schell in 2008. Its headquarters are in San Francisco, California. The site was founded in 2008 and was one of the first sites to offer crowd funding. Indiegogo allows people to solicit funds for an idea, charity or start-up business. The site’s goal is to empower anyone that has an idea to be able to raise the funds and amplify their goal.[1] Nine million people from all around the world visit the site on a monthly basis.

The site runs on a rewards-based system, meaning donors, investors, or customers who are willing to order a project or a product can donate and receive a gift rather than an equity stake in the company.[2] However, CEO Slava Rubin has stated that the company is interested in moving towards equity funding in the future once the laws around it become clearer in the U.S.[3]

History[edit]

In 2002, while working as an analyst on Wall Street, Danae Ringelmann co-produced a reading of an Arthur Miller play. Though the performance was popular with audiences there was little financial incentive available, and Ringelmann decided to seek alternative revenue streams.[4] Ringelmann was originally inspired to work with independent filmmakers and theater producers after a filmmaker 50 years her senior saw she worked at JPMorgan and asked her to fund his film.[4][5][6] In 2006 Ringelmann went on to the Haas School of Business to start a company that would democratize fundraising.[4][5] There she met Eric Schell and Slava Rubin, who had had similar experiences with fundraising.[6] Schell had previously worked with The House Theater Company in Chicago,[7] while Rubin had started a charity fundraiser for cancer research, after losing his father to cancer as a child.[8]

Ringelmann, Schell, and Rubin developed their concept in 2007 under the name “Project Keiyaku”.[9][10] The site was officially launched at the Sundance Film Festival in January 2008. The focus was film.[5] In June 2010, MTV New Media partnered with Indiegogo to develop new content from the site's projects.[11] In September 2011, the company raised a $1.5 million Series Seed financing round, led by Metamorphic Ventures, ff Venture Capital, MHS Capital and Steve Schoettler, Zynga's co-founder.[12] In February 2012, President Barack Obama's Startup America partnered with Indiegogo to offer crowdfunding to entrepreneurs in the U.S.[13] In June 2012, Indiegogo raised a $15 million Series A round from Insight Ventures, Khosla Ventures and Steve Schoettler, Zynga's co-founder.[14] In January 2014, a Series B round of funding added $40 million to bring the total venture capital raised to $56.5 million.[15]

Crowd funding[edit]

In an interview with Film Threat, Rubin said the site is “all about allowing anybody to raise money for any idea.”[16] The site's structure allows users to create a page for their funding campaign, set up an account with PayPal, make a list of "perks" for different levels of investment, then create a social media–based publicity effort. Users publicize the projects themselves through Facebook, Twitter and similar platforms. The site levies a 4% fee for successful campaigns. For campaigns that fail to raise their target amount, users have the option of either refunding all money to their contributors at no charge or keeping all money raised minus a 9% fee.[17] Unlike similar sites such as Kickstarter, Indiegogo disburses the funds immediately, when the contributions are collected through the user's PayPal accounts. Indiegogo also offers direct credit card payment acceptance through their own portal. Those funds are disbursed up to two weeks after the conclusion of a campaign.[18] According to The Wall Street Journal, as of January 2014 over 200,000 campaigns have been launched, raising "millions of dollars" to people running crowdfunding campaigns in 70 to 100 countries every week.[15] Indiegogo is also used by already-funded projects to create publicity or find distributors.

A few examples of campaigns on indiegogo, include "Lets Give Karen – The bus monitor – H Klein A Vacation!", which raised $703,833,[19] Stick-N-Find which has raised $861,165,[20] Bug-A-Salt which raised $577,546[21] and Let's Build a Goddamn Tesla Museum which raised $1.3 million.[22]

On 24 July 2013, Canonical Ltd. launched its crowdfunding campaign via Indiegogo to raise $32 million for Ubuntu Edge smartphone.[23] This is the highest target set for any crowdfunding campaign.[24] However, the campaign only raised $12.8 million, falling short of its target, and no funds were disbursed.[25]

In February 2014, Indiegogo launched an unsuccessful funding campaign for the Wikipedia Books Project designed to print the entire English Wikipedia in book form later in the year.[26][27]

In April 2014, after being shown clear evidence of fraud, Indiegogo responded by deleting their anti-fraud guarantee.[28]

Community Guidelines[edit]

If you are between the ages of 13-17 you may not use the site without a parent or legal guardian. You must be at least 18 years of age to use the site without consent.Your registration and account information must be valid and truthful. Campaign owners are not allowed to create a campaign that is attempting to raise funds for illegal activities or that is clearly made up or claiming to do something impossible.

If the campaign is offering perks they are not permitted to offer any forms of interest in the company or venture or any means of financial incentive. They cannot offer alcohol, drugs or substance, weapon or ammunition, or any forms of lottery or gambling. A campaign can not promote any ideas or opportunities of hate, personal injury, death, or damage of property or anything that can be distributed that violates another person's right.[29]

Investors[edit]

In May 2014, the company expanded and welcomed new investors which included Sir Richard Branson founder of Virgin Group, Max Levchin Yelp Chairman and co-founder of PayPal, Yahoo Board chairman Maynard Webb, Tim Draper the founding partner of Draper Fisher Jurvetson, Dawn Lepore the former chief Executive of drugstores.com, and former Visa president Hans Morris. The new money and support acquired follows a $40 million Series B financing that will accelerate its international expansion and develop new product features.[30]

Reception[edit]

Along with Kickstarter, Indiegogo is one of the most popular crowdfunding websites in America and is generally well received by its users. The majority of reviews praise Indiegogo’s ease of use and customer support, while some criticize the site’s ability to draw in funding from strangers. Indiegogo is more tolerant of projects and has looser guidelines than Kickstarter, the site allows people to fund campaigns that Kickstarter would not allow due to their clear rules and guidelines of the campaigns.[31]

See also[edit]

References[edit]

  1. ^ http://www.forbes.com/sites/danschawbel/2012/10/04/slava-rubin-on-how-indiegogo-has-stimulated-economic-growth/
  2. ^ http://blogs.wsj.com/venturecapital/2014/05/20/early-crowdfunding-player-indiegogo-brings-on-famous-new-investors/
  3. ^ http://www.foxbusiness.com/technology/2014/05/21/indiegogo-ceo-on-crowdfundings-future/
  4. ^ a b c Danae Ringelmann (2011). Leveling the Funding Playing Field, One Dollar at a Time. 
  5. ^ a b c Sacks, Danielle (3 March 2010). "Danae Ringelmann, cofounder of IndieGoGo". Fast Company. Retrieved 16 June 2012. 
  6. ^ a b "Danae Ringelmann, MBA 08". CalBusiness. Berkeley, California: Haas School of Business at the University of California, Berkeley. Retrieved 16 June 2012. 
  7. ^ "Eric Schell". CrunchBase. Retrieved 16 June 2012. 
  8. ^ "Can You Spare a Quarter? Crowdfunding Sites Turn Fans into Patrons of the Arts". Knowledge@Wharton. Philadelphia: The Wharton School of the University of Pennsylvania. 8 December 2010. 
  9. ^ Kirsner, Scott, “Filmakers hope for online funds”, Variety, 30 March 2007
  10. ^ Kirsner, Scott, “IndieGoGo: A Social Network for Filmmakers Raising Money (and Their Backers)”, CinemaTech, 14 January 2008
  11. ^ Ringelmann, Danae (7 June 2010). "Calling All IndieGoGo Creators – MTV New Media Wants You!". Indiegogo Blog. Indiegogo. 
  12. ^ Roush, Wade (7 September 2011). "Wednesday Deals Roundup: IndieGoGo, Project Frog, BlueArc". 
  13. ^ Loten, Angus (22 April 2011). "‘Startup America’ Embraces Crowd-funding". In Charge. The Wall Street Journal. 
  14. ^ Taylor, Colleen (6 June 2012). "Indiegogo Raises $15 Million Series A To Make Crowdfunding Go Mainstream". TechCrunch. 
  15. ^ a b Kolodny, Lora (28 January 2014). "Indiegogo Raises $40M in Largest Venture Investment Yet for Crowdfunding Startup". The Wall Street Journal. 
  16. ^ "Wake Me Up Before You Indiegogo: Interview With Slava Rubin". Film Threat. Retrieved 16 December 2010. 
  17. ^ "Learn More". Indiegogo. Retrieved 16 June 2012. 
  18. ^ Needleman, Sarah (1 November 2011). "When 'Friending' Becomes a Source of Start-Up Funds". Wall Street Journal. Retrieved 5 December 2011. 
  19. ^ Todd Essig (18 April 2012). "Why Raising 2/3 of a Million Dollars For Bus Monitor Karen Klein Was So Easy". Forbes. Retrieved 28 October 2012. 
  20. ^ "StickNFind – Bluetooth Powered ultra small Location Stickers". Indiegogo. 27 November 2012. Retrieved 20 January 2013. 
  21. ^ "BugASalt – The Final Push". Indiegogo. 11 September 2012. Retrieved 28 October 2012. 
  22. ^ "Tesla Museum Supporters Raise $1.3 Million Over Indiegogo – Eric Johnson – News". AllThingsD. 29 September 2012. Retrieved 28 October 2012. 
  23. ^ Guardian Technology Analysis
  24. ^ T3 News
  25. ^ Brodkin, Jon. (22 August 2013) Ubuntu Edge is dead, long live Ubuntu phones. Ars Technica. Retrieved on 21 September 2013.
  26. ^ Alison Flood (20 February 2014). "Wikipedia 1,000-volume print edition planned". The Guardian. Retrieved 22 February 2014. 
  27. ^ "The Wikipedia Books Project". Indiegogo. 11 April 2014. >
  28. ^ http://pando.com/2014/04/03/after-pando-shows-clear-evidence-of-fraud-on-indiegogo-company-responds-by-deleting-anti-fraud-guarantee/
  29. ^ https://www.indiegogo.com/about/terms )
  30. ^ (http://blogs.wsj.com/venturecapital/2014/05/20/early-crowdfunding-player-indiegogo-brings-on-famous-new-investors/ )
  31. ^ (http://www.forbes.com/sites/chancebarnett/2013/09/09/donation-based-crowdfunding-sites-kickstarter-vs-indiegogo/ )

External links[edit]