Crowdfunding has been a normal part of the online experience for years now. The most recognizable have been Kickstarter, Indiegogo, GoFundMe and Patreon, though there are dozens more out there for creators and entrepreneurs. Up until now, the path for creators using these platforms has been more or less the same:
- Make a pitch for what you will create (or have created and need to grow)
- Solicit donations from the public
- Offer tiered “rewards” to those who donate at certain levels
Now though, Indiegogo has teamed up with Microventures, a platform that connects startups with people looking to invest their money in a company that will give them a stake in the companies’ success. Together, they are offering entrepreneurs a larger platform, giving more people a chance to buy equity shares.
Think of it as small-scale Shark Tank, for everyone
For entrepreneurs, they are more accountable than before, because the people investing in their project are now part-owners of that company. There are more legal hurdles to have to jump through to get your project out the door, and this pressure will, in theory, mean that entrepreneurs are more careful and strategic about their offering, bringing to the table only projects they firmly believe they will succeed at, and making the best possible pitch to the public.
For people who want to support good products, this is an opportunity for your money to pay off, if the company you are backing succeeds. It’s a gamble for sure, there is nothing certain in crowdfunding, but this new pairing of crowdfunding and small-seed investment might create a more certain path than crowdfunding ventures have seen in the past.
If you are a creative with a plan on expanding your business to something larger than a freelance, solopreneur career, it might be worth checking out how to grow your business alongside supportive partners who have a stake in making sure you succeed.