Investing in return for an equity stake in the company is a particular avenue that has never been open to the crowdfunding community. This method of potentially profitable investment has previously been reserved for accredited investors only.
Despite this, Indiegogo has still managed to successfully launch over 200,000 funding campaigns, sourcing investment in return for gifts and discounted products. But the lack of equity investment options has perhaps meant that a large sector see this form of funding as unappealing.
This is set to change in 2015 as an impending law change will allow Indiegogo to offer equity in return for investment, something which its co-founders have for a long time been planning preparing for.
Indiegogo Vs Kickstarter
The appeal of the Indiegogo platform is certain to escalate dramatically once the door is opened, and it will offer further advantages to investors and entrepreneurs for the use of Indiegogo over the Kickstarter platform.
Currently, Indiegogo offers entrepreneurs and visionaries the funding they have been pledged, even if they don’t quite reach their target figure. Kickstarter don’t. This has led many of the best projects to opt for Indiegogo instead of its rival. Now, potential investors are also likely to be drawn towards Indiegogo as the appeal of returns on investment proves decisive.
Although Kickstarter has a very real community feel (many of the projects and their appeal doesn’t stretch beyond Facebook friends), Indiegogo is perhaps a slightly more ambitious platform in that they are constantly looking to evolve their service to increase its reach, and place some of the most compelling and innovative new start-ups in front of the biggest possible audience.
While equity investment is not a guarantee of profitable returns, the very possibility that it could be is sure to bring in from the cold those who are unwilling to part with their hard-earned money in return for a free gift.