Indiegogo crowdfunding platform opens the marketplace for innovative products

In the distant past, sponsors of projects on the crowdfunding platform Indiegogo could count on a t-shirt or ticket in exchange for a donation. When the focus shifted from movies to ideas, the backers could get something more substantial, like a gadget.

A year ago, the site began to offer those who wish to support the project share in startups. Now, entrepreneurs will be able to sell their innovative products on the marketplace immediately, without launching a separate crowdfunding campaign.

The portal, which allows startups to raise funds around the world, opens up a new e-commerce platform called Markeplace . It represents a major strategic turnaround for Indiegogo.

The results of successful crowdfunding projects will be sold on the Marketplace. These projects do not even have to be funded by Indiegogo - a gadget with Kickstarter will also work. Such a confident step towards online commerce will allow Indiegogo to compete with the giant Amazon , as well as with niche sites like Etsy .

According to Indiegogo CEO Dave Mandelbrot, opening a trade section will help startups even more. First, the platform helps to raise funds for the product, and then provides a tool for its further sale.

The company expects that most of the products offered on the Marketplace will be placed by startups whose projects received a start in life thanks to the site. Before the official launch of Indiegogo, the company conducted a pilot test of the Marketplace, 70 percent of the products that participated in it were funded through Indiegogo.

As for third-party products, Mandelbrot promises to conduct a hard selection. “You will not find us with standard offers like on Amazon. But you will find the last electric bike, or a suitcase, which rides you around the airport, and not boring, everyday things. ” Indiegogo will take from 10 to 15 percent of the sale price of the product.

It is noteworthy that Amazon itself is trying to attract innovative developers through the Amazon Launchpad platform , which funds new projects. Startups often find that sales of niche products conflict with the need for rapid growth, which is required of them by venture investors.

Indiegogo may also face problems in attracting a large customer base. Companies that have not previously engaged in e-commerce, often have difficulty with the perception of users when switching to new rails. A good example here is the photo hosting Pinterest. The Indiegogo brand has historically been associated only with fundraising (and initially for indie films), so they have to work with backers.

The steps taken by Indiegogo are another way to differentiate from the nearest competitor, Kickstarter. The new federal rules introduced last year made it possible for crowdfunding platforms to offer shares to beckers in exchange for funds - practically allowing anyone to try on the role of venture capitalist. In November, Indiegogo began selling stakes in startups, Kickstarter did not follow this example.

According to the representative of the oldest crowdfunding platform David Gallagher, the purpose of her work is only the embodiment of creative projects in life. “We also strive to make it clear that Kickstarter is not a store — it is a way to support the creation of something new,” he said.

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