Last December, crowdfunding site Indiegogo introduced a new section called Indiegogo Life, through which people could raise money for personal causes–say, medical bills for a cancer patient–without having to pay the fees that usually accompany listings on the platform. On Wednesday, Indiegogo said it was renaming the venture and devoting a separate site, Generosity.com, to its charity wing.
A key difference between Indiegogo Life and its new iteration is that the platform will now be open to nonprofit campaigns. Like its predecessor, Generosity nixes the 5% platform fee that Indiegogo levies on its traditional listings. (It does, however, still charge a nominal fee to process payments.)
Indiegogo, one of Kickstarter’s biggest competitors, is joining a host of other personal crowdfunding sites with the launch of Generosity–the most prominent of which is GoFundMe, which recently noted that it handled $1 billion in donations over the past year. According to the New York Times, Indiegogo would not disclose how much money Indiegogo Life campaigns had raised, but the company did say that overall, Indiegogo campaigns have raked in $750 million since the company was founded in 2008.
Unlike Indiegogo, however, GoFundMe charges both a processing and platform fee, which could help sway people to Generosity’s platform; the new site could also raise Indiegogo’s profile in relation to Kickstarter, which does not have a personal crowdfunding option.
As Fast Company wrote last month, Indiegogo has also expressed a unique interest in equity crowdfunding–the idea that regular people should be able to invest in startups and benefit from their success, just like venture capitalists currently do. From the previous Fast Company article:
Indiegogo is preparing for the possibility of helping entrepreneurs sell stakes in their new ideas.
That sets the company apart from Kickstarter, which states that it’s interested solely in helping worthy creative projects—such as movies, artisanal foodstuffs, and inventive gizmos—become reality. Judging them on their potential to turn a buck would sully that vision. Indiegogo’s mission is more all-encompassing, says Rubin: “Our North Star is that we’re trying to democratize funding.” The company is happy to raise money for nearly any goal that isn’t illegal, dangerous, or a form of hate speech, including charitable efforts, paying for personal medical emergencies, and other activities that Kickstarter bans.
[via The Verge]