Indie GoGo

Questions:

Success rate?

What are negative consequences/threats to the business?

How will the business grow?

Indiegogo is an innovative crowdfunding platform in that anyone can raise money for anything they like. The most important thing that Stan told us about Indiegogo is that it is a platform for a company to raise awareness of their product/concept, get consumer feedback, and find investors and contributors. This makes it possible for inexperienced or accidental entrepreneurs to create a business and get valuable feedback. An example he gave us was one for an electric bike. The creator hadn’t considered crowdfunding at all. When he introduced his bike to the community, the response was amazing. He raised millions of dollars. This proves that Indiegogo is a valuable tool for companies, especially start ups. The site lets the creator of the product talk to their investors in such a flexible way that allows them to get feedback that they need. One thing Stan pointed out that was very important is that your customers may use your product in a way that it wasn’t quite intended. Based on this and other similar feedback regarding product modifications, the company has an advantage over others on the market who may use focus groups or random user testing. These results can greatly improve the popularity of a product.

Another thing Stan told us was that investment partners and companies may shoot down your idea for being too radical. The case of the Muse headband was especially intriguing. No one wanted to invest in this radical telepathically poured beer idea. When the creator put this idea on Indiegogo, they gained interest and investments and more importantly, respect for their product. With numbers and figures to back up their product, they returned to the same investors and received the partnerships they needed. Stan had answered that the success rate of posters on Indiegogo varied. The frequency of undelivered goals is low, and yet the amount of delayed goals is high.