indiegogo
{{Short description|American crowdfunding website}}
{{for-multi|the Indianapolitan public transit service|IndyGo|the Philadelphia bicycle-sharing service|Indego}}
{{Use dmy dates|date=November 2019}}
{{Infobox website
| logo = 200px
| collapsible = yes
| collapsetext = Screenshot
| screenshot = Indiegogo screenshot.jpg
| url = {{URL|https://www.indiegogo.com/about/our-story}}
| type = Crowdfunding
| language = English, German, French, Spanish
| owner = Indiegogo, Inc.
| name = Indiegogo
| creators = {{Unbulleted list|Slava Rubin|Danae Ringelmann| Eric Schell}}
| location_city = San Francisco, California, U.S.
| magazine launch date =
| launch_date = {{Start date and age|2008|01}}
| current_status = Active
}}
Indiegogo {{IPAc-en|ˌ|ɪ|n|d|i|ˈ|g|oʊ|g|oʊ}} is an American crowdfunding website founded in 2008 by Danae Ringelmann,{{Cite web|url=https://twit.tv/shows/triangulation/episodes/187|title=Triangulation 187 Indiegogo Founder Danae Ringelmann|website=TWiT.tv|access-date=10 October 2019}} Slava Rubin, and Eric Schell. Its headquarters are in San Francisco, California. The site is one of the first sites to offer crowd funding. Indiegogo allows people to solicit funds for an idea, charity, or start-up business. Indiegogo charges a 5% fee on contributions. This charge is in addition to Stripe credit card processing charges of 2,9% + $0.30 per transaction.{{Cite web|url=https://learn.indiegogo.com/pricing-and-fees/|title=Indiegogo Pricing and Fees|website=Indiegogo|language=en-US|access-date=10 October 2019}} Fifteen million people visit the site each month.
The site runs on a rewards-based system, meaning donors, investors, or customers who are willing to help to fund a project or product can donate and receive a gift, rather than an equity stake in the company.{{cite news|url=https://blogs.wsj.com/venturecapital/2014/05/20/early-crowdfunding-player-indiegogo-brings-on-famous-new-investors/|title=Early Crowdfunding Player Indiegogo Brings On Famous New Investors|author=Lora Kolodny|work=WSJ}} Following changes in Security and Exchange Commission rules earlier in 2016, Indiegogo has partnered with MicroVentures to offer equity-based campaigns beginning in November 2016, allowing unaccredited investors to participate with equity stakes.{{Cite web | url = https://www.nytimes.com/2016/11/15/business/ever-wanted-to-back-a-start-up-indiegogo-opens-the-door-to-small-investors.html | title = Ever Wanted to Back a Start-Up? Indiegogo Opens the Door to Small Investors | first = Stacy | last = Cowley | date = 15 November 2016 | access-date = 15 November 2016 | work = New York Times }}
In 2014, Indiegogo launched Indiegogo Life, a service that people can use to raise money for emergencies, medical expenses, celebrations, or other life events. Indiegogo Life did not charge a platform fee. In 2015 Indiegogo Life was renamed to Generosity.com.{{cite web|url=http://bits.blogs.nytimes.com/2015/10/21/indiegogo-creates-generosity-com-for-personal-fund-raising-campaigns/|title=ndiegogo Creates Generosity.com for Personal Fund-Raising Campaigns|date=21 October 2015|author=Stacy Cowley}} Generosity.com was later acquired by YouCaring in January 2018, who were subsequently acquired by GoFundMe.{{Cite web|url=https://www.fastcompany.com/40554199/gofundme-keeps-gobbling-up-competitors-says-its-very-good-for-the-market|title=GoFundMe keeps gobbling up competitors, says it's "very good for the market"|first=Ainsley|last=Harris|date=4 April 2018|website=Fast Company}}
Donors use solely credit cards to donate, and processing is conducted by Stripe.{{Cite web|url=https://www.generosity.com/about/terms|title=Terms of Use {{!}} Generosity|website=www.generosity.com|access-date=14 March 2017}} Stripe's processing fees of 3% plus 30 cents of every donation still apply.{{Cite web|url=https://techcrunch.com/2014/12/15/indiegogo-life-helps-you-fund-good-deeds/|title=Indiegogo Life Helps You Fund Good Deeds|website=TechCrunch|date=15 December 2014 |language=en-US|access-date=10 October 2019}}
History
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.{{cite video |people= Danae Ringelmann |year= 2011 |title= Leveling the Funding Playing Field, One Dollar at a Time |url= http://tedxtalks.ted.com/video/TEDxDubai-Danae-Ringelmann-Leve}} 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.{{cite web |url= http://www.fastcompany.com/article/danae-ringelmann-indiegogo |title= Danae Ringelmann, cofounder of IndieGoGo |first= Danielle |last= Sacks |date= 3 March 2010 |work= Fast Company |access-date= 16 June 2012}}{{cite web |url= http://www.haas.berkeley.edu/groups/pubs/calbusiness/fall2009/feature03.html |title= Danae Ringelmann, MBA 08 |work= CalBusiness |publisher= Haas School of Business at the University of California, Berkeley |location= Berkeley, California |access-date= 16 June 2012 |archive-date= 24 December 2011 |archive-url= https://web.archive.org/web/20111224020733/http://www.haas.berkeley.edu/groups/pubs/calbusiness/fall2009/feature03.html |url-status= dead }} In 2006, Ringelmann went on to the Haas School of Business to start a company she felt would "democratize" fundraising. There she met Eric Schell and Slava Rubin, who had had similar experiences with fundraising. Schell had previously worked with The House Theater Company in Chicago,{{citation needed|date=August 2021}} while Rubin had started a charity fundraiser for cancer research, after losing his father to cancer as a child.{{cite web |url= http://knowledge.wharton.upenn.edu/article.cfm?articleid=2647 |title= Can You Spare a Quarter? Crowdfunding Sites Turn Fans into Patrons of the Arts |work= Knowledge@Wharton |publisher= The Wharton School of the University of Pennsylvania |location= Philadelphia |date=8 December 2010}}
Ringelmann, Schell, and Rubin developed their concept in 2007, under the name Project Keiyaku.{{Cite web|url=https://variety.com/2007/film/news/filmmakers-hope-for-online-funds-1117962289/|title=Filmmakers hope for online funds|last=Kirsner|first=Scott|date=31 March 2007|website=Variety|language=en|access-date=10 October 2019}} The site officially launched at the Sundance Film Festival in January 2008, with a focus on film projects. In June 2010, MTV New Media partnered with Indiegogo to develop new content from the site's projects.{{cite web |url= http://www.indiegogo.com/blog/2010/06/mtv-and-indiegogo-partner.html |title= Calling All IndieGoGo Creators – MTV New Media Wants You! |work= Indiegogo Blog |publisher= Indiegogo |date= 7 June 2010 |first= Danae |last= Ringelmann |access-date= 14 June 2012 |archive-date= 11 June 2010 |archive-url= https://web.archive.org/web/20100611014805/http://www.indiegogo.com/blog/2010/06/mtv-and-indiegogo-partner.html |url-status= dead }} 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.{{cite web |url= http://www.xconomy.com/san-francisco/2011/09/07/wednesday-deals-roundup-indiegogo-project-frog-bluearc/ |title= Wednesday Deals Roundup: IndieGoGo, Project Frog, BlueArc |first= Wade |last= Roush |date= 7 September 2011}} In February 2012, President Barack Obama's Startup America partnered with Indiegogo to offer crowdfunding to entrepreneurs in the U.S.{{cite web |url=https://blogs.wsj.com/in-charge/2011/04/22/%E2%80%98startup-america%E2%80%99-embraces-crowd-funding/ |department=In Charge |title='Startup America' Embraces Crowd-funding |first= Angus |last= Loten |newspaper=The Wall Street Journal| date=22 April 2011}}
In June 2012, Indiegogo raised a $15 million Series A round from Insight Ventures, Khosla Ventures and Steve Schoettler, Zynga's co-founder.{{cite web |url= https://techcrunch.com/2012/06/06/indiegogo-funding-15-million-crowdfunding/ |title= Indiegogo Raises $15 Million Series A To Make Crowdfunding Go Mainstream |work= TechCrunch |first= Colleen |last= Taylor |date=6 June 2012}} In January 2014, a Series B round of funding added $40 million to bring the total venture capital raised to $56.5 million.{{cite news |url=https://blogs.wsj.com/venturecapital/2014/01/28/indiegogo-raises-40m-in-largest-venture-investment-yet-for-crowdfunding-startup/ |title= Indiegogo Raises $40M in Largest Venture Investment Yet for Crowdfunding Startup |first= Lora |last= Kolodny |newspaper=The Wall Street Journal| date=28 January 2014}} David Mandelbrot (the company's then-COO) was named CEO in January 2016.{{Cite web|url=https://techcrunch.com/2016/01/26/indiegogo-ceo-slava-rubin-steps-down-to-be-replaced-by-current-coo/|title=Indiegogo CEO Slava Rubin Moves To A New Role, To Be Replaced By Current COO|website=TechCrunch|date=26 January 2016 |language=en-US|access-date=7 October 2019}}
In May 2019, CEO David Mandelbrot stepped down for personal reasons.{{Cite web|url=https://www.linkedin.com/pulse/time-move-david-mandelbrot|title=Time To Move On|website=www.linkedin.com|language=en|access-date=7 October 2019}} He was succeeded by former Reddit core-product leader Andy Yang.{{Cite web|url=https://www.theverge.com/2019/5/22/18635644/indiegogo-layoffs-ceo-david-mandelbrot-andy-yang|title=Indiegogo's CEO steps down amid layoffs|last=Stephen|first=Bijan|date=22 May 2019|website=The Verge|access-date=23 May 2019}} In April 2022, announced the appointment of Becky Center as the company's new CEO.{{Cite web |title=Becky Center is new Indiegogo CEO |url=https://techcrunch.com/2022/04/26/indiegogo-names-becky-center-new-ceo/ |access-date=2022-06-08 |website=TechCrunch |date=26 April 2022 |language=en-US}}
Products
=Crowd funding=
In an interview with Film Threat, Rubin said the site is "all about allowing anybody to raise money for any idea".{{cite web | url = http://www.filmthreat.com/interviews/26476/ | title = Wake Me Up Before You Indiegogo: Interview With Slava Rubin | access-date = 16 December 2010 | work = Film Threat}} Users can create a page for their funding campaign, 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 5% 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.{{cite web |url= http://www.indiegogo.com/learn/pricing |title= Learn More |publisher= Indiegogo |access-date= 16 June 2012}} This option must be selected before the campaign begins, and the goal will be listed, directly underneath the amount raised, as fixed (only receive funds if goal is met) or flexible (will receive funds if goal is not met). Indiegogo does not provide prospective backers with any means to contact campaigns to ask questions or make suggestions before they decide to participate.
Indiegogo offers direct credit card payment acceptance through their own portal. Those funds are disbursed up to two weeks after the conclusion of a campaign.{{cite news | first = Sarah | last = Needleman | title = When 'Friending' Becomes a Source of Start-Up Funds | date = 1 November 2011 | url = https://www.wsj.com/articles/SB10001424052970204528204577007781568296346?mod=googlenews_wsj | work = The Wall Street Journal | access-date = 5 December 2011}} As of August 2017, Indiegogo does not offer PayPal as an option for contributions.{{cite web|url=https://support.indiegogo.com/hc/en-us/articles/115001131088-Why-is-PayPal-no-longer-available-for-my-campaign-|title=Why is PayPal no longer available for my campaign?|website=Indiegogo Help Center|access-date=19 June 2018}} Indiegogo does not stand behind campaigns once they have been funded, responding to a complaint of non-delivery of promised rewards, "each crowdfunding campaign is run by the individual campaigner who is solely in charge of distributing any perks offered. Indiegogo does not guarantee that the perks offered by the campaigner will be produced or delivered."Letter to donor of 21 December 2017 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. Already-funded projects also use Indiegogo, to create publicity or find distributors.
A few of the successful Indiegogo campaigns include:
- "Lets Give Karen – The bus monitor – H Klein A Vacation!", which raised $703,833{{cite magazine|author=Todd Essig |url=https://www.forbes.com/sites/toddessig/2012/06/25/donations-to-karen-klein-bullied-bus-monitor-pour-into-crowd-funding-site/ |title=Why Raising 2/3 of a Million Dollars For Bus Monitor Karen Klein Was So Easy |magazine=Forbes |date=18 April 2012 |access-date=28 October 2012}}
- Stick-N-Find, which has raised $861,165{{cite web|url=http://www.indiegogo.com/sticknfind |title=StickNFind – Bluetooth Powered ultra small Location Stickers |publisher=Indiegogo |date=27 November 2012 |access-date=20 January 2013}}
- Bug-a-Salt, which makes a gun firing salt, intended to kill flies, and which raised $577,546{{cite web|url=http://www.indiegogo.com/p/161050 |title=BugASalt – The Final Push |publisher=Indiegogo |date=11 September 2012 |access-date=28 October 2012}}
- Earthworm Jim: The Comic Book, which raised $815,676{{cite web|author=Doug Tennapel|url=https://www.indiegogo.com/projects/earthworm-jim-the-comic-book#/|title=Erthworm Jim: The Comic Book}}
- Let's Build a Goddamn Tesla Museum, which raised $1.3 million{{cite web|url=http://allthingsd.com/20120929/tesla-museum-supporters-raise-1-3-million-and-put-indiegogo-in-the-spotlight/ |title=Tesla Museum Supporters Raise $1.3 Million Over Indiegogo – Eric Johnson – News |publisher=AllThingsD |date=29 September 2012 |access-date=28 October 2012}}
- The Storm Electric Bike, which as of 19 February 2015 has raised $3.5 million from 6,293 funders{{cite web|url=https://www.indiegogo.com/projects/storm-electric-bike |title=Storm Electric Bike |publisher=Indiegogo |date=2 February 2015 |access-date=19 February 2015}}{{cite web|url=http://www.treehugger.com/bikes/500-storm-e-bike-too-good-be-true-looks.html |title=Is the $500 Storm e-bike too good to be true? Looks like. |publisher=Treehugger |date=5 February 2015 |access-date=5 February 2015}}
- SuperMeat, an Israeli cultured meat company{{cite web|author=Lulu Chang|url=http://www.digitaltrends.com/cool-tech/supermeat-lab-grown-chicken/|date=11 July 2016|title=SuperMeat wants you to try its lab-grown chicken breast|publisher=Digital Trends}}
On 24 July 2013, Canonical Ltd. launched its crowdfunding campaign via Indiegogo to raise $32 million for the Ubuntu Edge smartphone.{{cite news|url=https://www.theguardian.com/technology/2013/jul/23/ubuntu-edge-crowdfunding-analysis|title=Go ahead and order an Ubuntu Edge – but you'll wish you'd bought a tablet|author=Charles Arthur|newspaper=The Guardian|date=23 July 2013 }} This is the highest target set for any crowdfunding campaign.{{cite web|url=http://www.t3.com/news/ubuntu-edge-smartphone-breaks-crowdfunding-record|title=Ubuntu Edge smartphone breaks crowdfunding record|author=Jeff Parsons|date=23 July 2013|work=T3.com}} However, the campaign only raised $12.8 million, falling short of its target, and no funds were disbursed.Brodkin, Jon. (22 August 2013) [https://arstechnica.com/information-technology/2013/08/ubuntu-edge-is-dead-long-live-ubuntu-phones/ Ubuntu Edge is dead, long live Ubuntu phones]. Ars Technica. Retrieved on 21 September 2013.
In February 2014, Indiegogo launched an unsuccessful funding campaign for the Wikipedia Books Project, which had planned to print the entire English Wikipedia in book form later in the year.{{cite news|url=https://www.theguardian.com/books/2014/feb/20/wikipedia-1000-volume-print-edition-crowdfunding|title=Wikipedia 1,000-volume print edition planned|author=Alison Flood|newspaper=The Guardian|date=20 February 2014|access-date=22 February 2014 }}{{cite web|url=http://www.indiegogo.com/projects/the-wikipedia-books-project/x/7788117 |title=The Wikipedia Books Project| publisher=Indiegogo |date=11 April 2014}}>
=Top projects by funds raised=
{{see also|List of highest funded crowdfunding projects}}
= InDemand =
In 2014, Indiegogo introduced their Forever Funding{{Cite news|url=https://techcrunch.com/2014/09/17/indiegogo-forever-funding/|title=Indiegogo Tries "Forever Funding" Campaigns Without End Dates|last=Constine|first=Josh|work=TechCrunch|access-date=30 January 2018|language=en}} program, which allows crowdfunding campaigns to continue to raise funds after their initial campaign period has ended, which was later renamed "InDemand".
Campaign rules
Users between the ages of 13 and 17 may not use the site without a parent or legal guardian's consent. Campaign owners may not create a campaign that tries to raise funds for illegal activities, or that is clearly made up or claiming to do something impossible.
If the campaign offers perks, it can't offer any forms of interest in the company or venture, or any financial incentive. The campaign cannot offer alcohol, drugs, weapons or ammunition, or any form of lottery or gambling. A campaign can not promote ideas or opportunities of hate, personal injury, death, or damage of property, or anything that can be distributed that violates another person's rights.{{cite web|url=http://www.indiegogo.com/about/terms|title=Terms of Use|work=indiegogo.com}}
Reception
Indiegogo is one of the most popular donation-based crowdfunding websites based in the United States. Indiegogo is the leading platform for tech products, and also permits crowdfunding for creative projects and community or personal causes.{{cite web | url=https://www.launchboom.com/blog/what-is-the-difference-between-kickstarter-and-indiegogo/#:~:text=Basically%2C%20Kickstarter%20requires%20you%20to,reached%20your%20goal%20or%20not. | title=What is the Difference Between Kickstarter and Indiegogo? | date=24 March 2023 }}
Controversies
=Patent disputes=
On 23 January 2015 a patent infringement lawsuit was filed by Alphacap Ventures LLC against multiple crowdfunding platforms, including Indiegogo, CircleUp, GoFundMe, Kickstarter, Gust, RocketHub and Innovational Funding.{{cite web|url=http://www.crowdfundinsider.com/2015/01/61834-details-emerge-on-patent-lawsuit-against-multiple-crowdfunding-plaforms-revealed/|title=Details Emerge on Patent Lawsuit Against Multiple Crowdfunding Platforms|website=crowdfundinsider.com|date=29 January 2015 }} The case was ultimately dismissed by the presiding judge, with prejudice, for having been filed in bad faith; as was admitted by the plaintiffs.{{cite web|url=https://www.crowdfundinsider.com/2016/12/93881-victory-gust-wins-crowdfunding-patent-infringement-case-alphacap-ventures/|title=Victory - Gust Wins Crowdfunding Infringement Case Against Alphacap Ventures|website=crowdfundinsider.com|date=20 December 2016 }}
=Monopolistic practices=
In December 2024, Coast Runner Industries sued Indiegogo for violations of federal antitrust law in response to the suspension of its desktop CNC campaign.{{cite web| last= Scarcella|first= Mike |publisher= Reuters |date= December 10, 2024| url=https://www.reuters.com/legal/litigation/gun-rights-activist-sues-kickstarter-indiegogo-over-alleged-funding-boycott-2024-12-10/|title=Gun rights activist sues Kickstarter, Indiegogo over alleged funding boycott| access-date= 2024-12-22}}
See also
References
{{Reflist|30em}}
External links
- {{official website|https://www.indiegogo.com/about/our-story}}
{{Crowdfunding platforms}}
Category:Financial services companies established in 2008
Category:Crowdfunding platforms of the United States