Indiegogo has attracted nearly $1 billion for causes and projects in the eight years since its founding—an impressive tally, but less impressive compared to GoFundMe’s $3 billion in contributions and Kickstarter’s $2.7 billion in pledges. As crowdfunding has become more competitive, Indiegogo has been losing share.
Now the platform is looking to a new source of growth: equity crowdfunding, a form of investment that became available to the general public in May as a result of the JOBS Act (shorthand for “Jumpstart our Business Startups”). Through Indiegogo and partner MicroVentures, entrepreneurs will be able to raise up to $1 million in equity financing from small-time investors like you and me. Early offerings include a craft distillery and a video game company.
Kickstarter, which remains focused on creative projects, does not plan to introduce an equity option.