Is crowdfunding a flash in the pan or will funding portals be able to make money?
The smart money in Silicon Valley seems to think it’s a long term winner. Institutional Venture Partners and Kleiner Perkins Caufield & Byers, along with the current VC investors, dropped another $40 million into a Series B round with IndieGoGo, making their total investment $56.5 million. IndieGoGo will use the money to hire engineers, accelerate its international expansion and develop new product features that “matter to users.”
According to Pitchbook: “Indiegogo has hosted more than 190,000 campaigns from nearly 190 countries and, in the past two years, has expanded to 85 employees while opening its new headquarters in the South of Market neighborhood of San Francisco. The company has now raised over $56 million in funding to date, including a $15 million Series A investment that garnered a $58 million valuation in 2012.”
Unlike Kickstarter, IGG lets fundraisers keep the money if they do not reach their target raise, but charges a larger fee for doing so.
The investors called IGG the “Android of crowdfunding.”