Apr 19, 2017
On this episode of Unconventional Genius, I sit down with David Mandelbrot, CEO at Indiegogo, to find out how his company is breaking down barriers for entrepreneurship. Indiegogo is a crowdfunding platform that allows entrepreneurs to launch their companies or products with the backing of individuals who truly believe in their vision. Listen to this fascinating conversation and hear how Indiegogo is impacting the world.
Since launching in 2008, Indiegogo has allowed people to back more than 800,000 products. By breaking down barriers for entrepreneurship, the platform has seen over 1 billion dollars in funding. David Mandelbrot says, “Crowdfunding is a great way to get funds early so you can actually fund the development of the product.”
3 reasons people back projects on Indiegogo
During our conversation, David Mandelbrot shares with me some of the reasons that campaigns are successful. He says that they have researched to try and learn what makes people invest in the products or companies that use the platform. The key to breaking down barriers to entrepreneurship through Indiegogo lies in appealing to at least one of these three motivators.
Once an entrepreneur begins to gain traction with a campaign, Indiegogo can help boost them to even greater success. People will invest in companies that either bring unique value to the world or provide special perks in exchange for their investment. David says that tech products and unique hardware solutions usually see the best funding results on Indiegogo.
The magic number of 1 million
A million dollars seems like the magic number that every entrepreneur wants to raise. I ask David how to achieve that goal on Indiegogo. He suggests that it is best to create a groundswell prior to starting the launch of the crowdfunding campaign. Building momentum by cultivating a following will give the entrepreneur a better chance to raise a million dollars in funding.
In order to do that, it takes moving beyond your friends and family. Building a network outside of those who already know you can greatly increase the chance of success. It is important to get the word out to a broad base of potential investors.
Indiegogo as the avenue to proof of concept
Indiegogo is breaking down barriers to entrepreneurship by making it easier for companies to prove the market. Different from traditional retail channels, Indiegogo has created an avenue to get a product to consumers online. This eliminates the necessity of raising capital for production before you have proven that there is a market.
Indiegogo is helping to mitigate risk for entrepreneurs. A traditional product launch that doesn’t perform well could threaten to sink an entire company. However, on Indiegogo even if the campaign proves that there isn’t a market, failure becomes less costly. There is still an opportunity to make adjustments and continue to move forward.
How Indiegogo will continue breaking barriers for entrepreneurship
Larger companies and corporations are now using crowdfunding platforms to expand their portfolio of products. By proving the concept on indiegogo, these companies can take greater risks without incurring potentially crippling costs. It also helps them to sidestep some of the red tape inherent in large companies.
David Mandelbrot says that Indiegogo will continue to transform the way entrepreneurs get their product to market. By providing a platform that fosters innovation, the opportunities are endless. Listen to this episode of Unconventional Genius to hear how Indiegogo plans to continue breaking down barriers for entrepreneurship.
If you are with a consumer technology company planning to launch a new product at CES or are even looking ahead to CES 2019, the Max Borges Agency can help you succeed. To learn more, check out: www.maxborgesagency.com.
Topics Featured In This Episode
- [2:06] What indiegogo is and how it aides in breaking down barriers for entrepreneurship
- [6:06] The types of products or categories that get the most funding on Indiegogo
- [9:31] How to get a million dollars in funding with a campaign on indiegogo
- [13:32] Why should a company or entrepreneur use indiegogo to fund their project
- [18:23] The impact of indiegogo on entrepreneurism
- [24:24] How crowdfunding helps mitigate risk and provides critical feedback that leads to success
- [29:12] The benefit of indiegogo for larger, established companies looking to take risks
- [33:49] Does indiegogo ever fail to prove a market for a product that then goes on to be successful
- [36:00] The vision for the future of indiegogo and how the company will continue to impact the world
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