What is crowdfunding?

What is crowdfunding? What is an Indiegogo campaign?

Maybe you have heard these keywords lately, in the news or from people within your community, and yet, you have no idea what do they stand for. Let me demystify them for you.

What is crowdfunding and who are the main actors?

Crowdfunding is a new and alternative way for startups, big companies and individuals to raise money to move forward with their new and upcoming project. Here’s how it works, it’s pretty simple : On one side, there is the campaign creators, those who have a new, innovative and entrepreneurial project, which may also be a nonprofit or even a social cause, to be submitted onto a platform, such as Indiegogo, for funding. And on the other side, the crowdfunding community who gets to decide which project to give monetary support to, in exchange of a reward.

Why do people create crowdfunding campaigns?

You can see crowdfunding as the MP3 player of the traditional funding methods, the CD. For project creators, it is a great opportunity to progress towards mass production with both demand validation and direct feedbacks and interaction with the crowd. They get to tell their story and try to captivate the interest of viewers.

Why do people back an Indiegogo campaign?

Crowdfunding is open to everyone, and for those who wants to experience crowdfunding for the first time to discover new projects, this is a great opportunity to do so. By backing one, you will not only support the product you like but you will be among the first to receive a copy of it, prior their market release. You may also contribute to the product improvement by providing your feedbacks.

Backers are the main key for crowdfunding projects to succeed, as word of mouth and campaign page sharing bring the most potential new backers to the project which will create a snowball effect.

What are the main crowdfunding platforms?

The two main well-known platforms worldwide are Kickstarter, founded in 2009 and based in New York, and Indiegogo, founded in 2008 and based San Francisco. Meanwhile, many new platforms are making their entrance into the market.

Some examples just for you

I’ve been looking at plenty of projects lately, as we are currently preparing our Indiegogo campaign for the Triangle speaker, and I have came across many great projects from Montréal, our hometown:

Here are a few projects I personally like:

My team and I launched our very own Indiegogo campaign on May 9th. Make sure to visit our campaign NOW and SAVE up to 45% OFF retail price!