Indiegogo

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Indiegogo
Indiegogo logo.png
Web address www.indiegogo.com
Type of site Crowd funding
Available language(s) English, French, German
Launched 2008
Current status active

Indiegogo is an international crowdfunding site founded by Danae Ringelmann, Slava Rubin, and Eric Schell in 2008. Its headquarters are in San Francisco, California.

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.[1] 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.[1][2][3] In 2006 Ringelmann went on to the Haas School of Business to start a company that would democratize fundraising.[1][2] There she met Eric Schell and Slava Rubin, who had had similar experiences with fundraising.[3] Schell had previously worked with The House Theater Company in Chicago,[4] while Rubin had started a charity fundraiser for cancer research, after losing his father to cancer as a child.[5]

Ringelmann, Schell, and Rubin developed their concept in 2007 under the name “Project Keiyaku”.[6][7] The site was officially launched at the Sundance Film Festival in January 2008. The focus was film.[2] In June 2010, MTV New Media partnered with Indiegogo to develop new content from the site's projects.[8] 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.[9] In February 2012, President Barack Obama's Startup America partnered with Indiegogo to offer crowdfunding to entrepreneurs in the U.S.[10] In June 2012, Indiegogo raised a $15 million Series A round from Insight Ventures, Khosla Ventures and Steve Schoettler, Zynga's co-founder.[11]

Crowd funding[edit]

In an interview with Film Threat, Rubin said the site is “all about allowing anybody to raise money for any idea.”[12] 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.[13] 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.[14] According to The Wall Street Journal, as of October 2011 over 45,000 campaigns have been launched, raising "millions each month." (US).[14] 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,[15] Stick-N-Find which has raised $861,165,[16] Bug-A-Salt which raised $577,546[17] and Let's Build a Goddamn Tesla Museum which raised $1.3 million.[18]

On July 24, 2013, Canonical Ltd. launched its crowdfunding campaign via Indiegogo to raise $32 million for Ubuntu Edge smartphone.[19]  This is the highest target set for any crowdfunding campaign.[20] However, the campaign only raised $12.8 million, falling short of its target, and no funds were disbursed.[21]

As of August 26, 2013, Canary: The first smart home security device for everyone raised $1,961,494 becoming the most successfully funded campaign on Indiegogo to date. Canary launched on Indiegogo on July 22, 2013 with a goal of 100k, which it met within the first few hours.[22] By the end of their campaign Canary had garnered contributions from 7460 individuals in 78 different countries.[23]

In February 2014, Indiegogo launched a funding campaign for the Wikipedia Books Project designed to print the entire English Wikipedia in book form later in the year.[24]

In April 2014, after being shown clear evidence of fraud, Indiegogo responded by deleting their anti-fraud guarantee.[25]

See also[edit]

References[edit]

  1. ^ a b c Danae Ringelmann (2011). Leveling the Funding Playing Field, One Dollar at a Time. 
  2. ^ a b c Sacks, Danielle (2010-03-03). "Danae Ringelmann, cofounder of IndieGoGo". Fast Company. Retrieved 2012-06-16. 
  3. ^ a b "Danae Ringelmann, MBA 08". CalBusiness. Berkeley, California: Haas School of Business at the University of California, Berkeley. Retrieved 2012-06-16. 
  4. ^ "Eric Schell". CrunchBase. Retrieved 2012-06-16. 
  5. ^ "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. 2010-12-08. 
  6. ^ Kirsner, Scott, “Filmakers hope for online funds”, Variety, 30 March 2007
  7. ^ Kirsner, Scott, “IndieGoGo: A Social Network for Filmmakers Raising Money (and Their Backers)”, CinemaTech, 14 January 2008
  8. ^ Ringelmann, Danae (2010-06-07). "Calling All IndieGoGo Creators – MTV New Media Wants You!". Indiegogo Blog. Indiegogo. 
  9. ^ Roush, Wade (2011-09-07). "Wednesday Deals Roundup: IndieGoGo, Project Frog, BlueArc". 
  10. ^ Loten, Angus (2011-04-22). "‘Startup America’ Embraces Crowd-funding". In Charge. The Wall Street Journal. 
  11. ^ Taylor, Colleen (2012-06-06). "Indiegogo Raises $15 Million Series A To Make Crowdfunding Go Mainstream". TechCrunch. 
  12. ^ "Wake Me Up Before You Indiegogo: Interview With Slava Rubin". Film Threat. Retrieved 2010-12-16. 
  13. ^ "Learn More". Indiegogo. Retrieved 2012-06-16. 
  14. ^ a b Needleman, Sarah (November 1, 2011). "When 'Friending' Becomes a Source of Start-Up Funds". Wall Street Journal. Retrieved 2011-12-05. 
  15. ^ Todd Essig (2012-04-18). "Why Raising 2/3 of a Million Dollars For Bus Monitor Karen Klein Was So Easy". Forbes. Retrieved 2012-10-28. 
  16. ^ "StickNFind- Bluetooth Powered ultra small Location Stickers". Indiegogo. 2012-11-27. Retrieved 2013-01-20. 
  17. ^ "BugASalt- The Final Push". Indiegogo. 2012-09-11. Retrieved 2012-10-28. 
  18. ^ "Tesla Museum Supporters Raise $1.3 Million Over Indiegogo - Eric Johnson - News". AllThingsD. 2012-09-29. Retrieved 2012-10-28. 
  19. ^ Guardian Technology Analysis
  20. ^ T3 News
  21. ^ Brodkin, Jon. (2013-08-22) Ubuntu Edge is dead, long live Ubuntu phones. Ars Technica. Retrieved on 2013-09-21.
  22. ^ Canary Shatters Its Indiegogo Funding Goal For Its Smart, Dead-Simple Home Monitors. TechCrunch (2013-07-25). Retrieved on 2013-09-21.
  23. ^ Canary Smart Home Security Device Closes Just Shy of $2 Million Crowdfunded. Crowdfund Insider (2013-08-29). Retrieved on 2013-09-21.
  24. ^ Alison Flood (20 February 2014). "Wikipedia 1,000-volume print edition planned". The Guardian. Retrieved 22 February 2014. 
  25. ^ http://pando.com/2014/04/03/after-pando-shows-clear-evidence-of-fraud-on-indiegogo-company-responds-by-deleting-anti-fraud-guarantee/

External links[edit]