Crowdfunding websites like Kickstarter provide tons of help for small businesses in raising capital and getting their name into people heads. However, one idea by a young entrepreneur took this business for a spin when Indiegogo was created in 2008 by Slava Rubin. Being a graduate from Wharton University, Rubin is the Co-founder and CEO of Indiegogo- one of the first and now largest crowdfunding websites on the internet.
The site runs on a rewards-based system, meaning donors, investors, or customers who are willing to help fund a project or product can donate and receive a gift, rather than an equity stake in the company. However, Rubin has stated that the company is interested in moving towards equity funding in the future once laws around it become clearer in the U.S.
In 2014, Indiegogo launched Indiegogo Life, a service that people can use to raise money for emergencies, medical expenses, celebrations, or other life events. Since Indiegogo Life does not charge a platform fee, fundraisers keep more of the money they raise. Indiegogo Life is a great example of forward-thinking from CEO Slava Rubin and really displays the customer-satisfying and personal direction he wants to take his company, which I really admire.
By the end of this year, it is predicted that global crowdfunding sites like Indiegogo and Kickstarter will double annual revenues, to $6 billion worldwide. Under Rubin, Indiegogo has become a leader in web-based crowdfunding, having raised $15M in Series A funding from Insight Venture Partners and Kohsla Ventures a year ago. Rubin has played an influential role in working with the White House and helping to finalize the rules and regulations for equity crowdfunding in the United States.
Recapping, Slava Rubin is an extremely inspirational and successful millennial entrepreneur and his company continues to grow larger day after day. I found it very interesting learning more about his story and young business. I also explored Indiegogo and found some crazy product ideas and absolutely loved seeing all of these people who invest and help kickstart other businesses. Check out the link below if you want to do some exploring too!
Crowdfunding sites are great avenues for people to become involved in growing the small businesses around them, and the introduction of Indiegogo Life is a great pivot from the usual crowdfunding platform. Lots of crowdfunders simply enjoy giving money to businesses that need a boost, and collecting funds for emergency relief and other charitable causes is a great way to cater to the charitable desires of the average crowdfunder. Great article!
I’m an avid follower of Kickstarter and am heartened to know that more like minded companies stepping into the ring. The startup of small businesses inspires me more than just about anything else and seeing new platforms that give those startups a chance is simply fantastic. Great article!
Crowdfunding is a very useful utility for entrepreneurs, especially those involved in a start up. I am big fan of Kickstarter and have looked into crowdfunding myself. Great article!