Published on Feb 14, 2019 in Crowdfunding News
So you’ve created your world-changing product or problem-solving business, and now you’re thinking about crowdfunding to get production started? Choosing the best crowdfunding platform to host your campaign is essential to getting the funding you need, and it’s a LOT easier than trying your luck with VC funding or chasing angel investors.
Kickstarter and Indiegogo are top crowdfunding options that offer a lot of opportunities for entrepreneurs to get their projects off the ground, but deciding which one is the best fit for your vision can be tricky. Figure out which crowdfunding platform is your golden egg with the guidelines below!
Indiegogo is great for a wide range of business types. The platform has sections for everything from tech-based products, to creative works, to community projects—making it popular from both a consumer and an entrepreneur standpoint.
Indiegogo has two funding options: Fixed funding, which only allows you to receive funds if you reach your funding goal; and flexible funding, which allows you to keep whatever funds you get—even if you don’t reach your fundraising goals. Indiegogo also allows you to find investors directly, which is a nice perk.
According to Crowdfund Insider Indiegogo campaigns have a success rate of 9.8% for campaigns that use their flex-funding option and 17.1% for campaigns that use their fixed funding option.
Indiegogo accepts physical products, fundraisers that benefit nonprofit organizations, community projects, and educational campaigns. They keep things strictly business and do not allow personal cause campaigns.
One of the main perks of using Indiegogo’s platform is their support beyond crowdfunding for project creators. This includes Kickstarter’s partnerships with key resources for everything from design to retail. This can help creators who don’t necessarily have connections in place for prototype creation, shipping, or anything that goes along with the process of bringing a product to market.
Post-campaign, Indiegogo offers creators the opportunity to use Marketplace if the project reached full funding and is ready to ship; and InDemand if the project needs to continue raising money or needs more development after the campaign ends.
Kickstarter has a strong focus on artistic endeavors and is strictly for campaigns that are focused on supporting artists and the arts in general. The platform puts a lot of focus on its mission to “help bring creative projects to life.” According to ProductHype, their stricter project guidelines lead to a higher quality selection of campaigns. The campaigns they feature are for products that have already been created and are ready to be shared with the world.
However, Kickstarter projects are all-or-nothing. If you fail to reach your funding goal, you won’t get the money backers pledged.
According to Crowdfund Insider, Kickstarter projects have a success rate of 43.4%.
Kickstarter requires campaigns to focus on something that can be shared with the world—either a physical piece of art or technology or a film, musical album, or event. Physical items must additionally have a working prototype. This is great for backers, as it allows them to be sure the project they are backing is actually viable.
Nonprofits are permitted, but raising funds for charity is not—check out this handy guide to figure out the details on that. Kickstarter also has a list of unacceptable campaigns, which you can find here.
Unlike Indiegogo, Kickstarter bars you from offering equity, revenue sharing, or investments as the incentive to backers.
Still not sure which crowdfunding platform is right for your project? Simplify the process by reaching out to a professional crowdfunding campaign manager like Arora Project.