Kickstarter or Indiegogo? Small Business Crowdfunding
Raising money for a new business is hard. Especially if you’re investing in research and development, manufacturing, and inventory, crowdfunding campaigns are becoming a popular choice for entrepreneurs. Based on project requirements, geographical restrictions, and fundraising features, we’re breaking down the difference between Indiegogo and Kickstarter.
What are the different project requirements?
Indiegogo is much less strict when it comes to restrictions for crowdfunding projects. On Kickstarter, all campaign creators must follow Kickstarter’s rules, which include having fully functional prototypes and not promoting any prohibited items. Both Indiegogo and Kickstarter allow nonprofits to launch campaigns, but Kickstarter does not allow projects to raise funds that will be donated to a charity or cause. The perk structure of Indiegogo also has specific limitations (you can’t offer perks in the form of lotteries, raffles, or gambling—for example—plus a few more). Both Indiegogo and Kickstarter prohibit campaign organizers from promising equity or ownership shares in the fundraising company.
Who’s eligible to create a project?
If you’re looking to crowdfund in Central or South America, Africa, or Asia, Kickstarter is not an option for your project. The platform only supports campaigns in 18 countries, significantly less than Indiegogo’s 224.
How do flexible fundraising goals work (and impact backers)?
Indiegogo is the only crowdfunding campaign that allows campaign organizers to keep all contributions even without reaching your goal. Keep in mind, flexible funding may scare off some backers; the chance they lose their money in the event of a partially-funded but never-made product can reduce how many people contribute. If flexible funding still sounds like the right choice, make sure to read Indiegogo’s article on being an effective communicator with your backers and offering support throughout the fundraising process.
Kickstarter is an all-or-nothing crowdfunding platform, so if you’re comfortable meeting your goal or giving everything back, it’s still a great fit.
What if I want to raise more funds after I meet my goal?
If you’re hoping to continue crowdfunding even after your project’s goal has been reached, Indiegogo might be the better fit. Indiegogo’s InDemand platform helps Indiegogo creators easily keep raising funds even after the campaign has finished.
Which is better for me?
Kickstarter’s huge audience base and creative, product-driven ecosystem makes it our first choice for companies looking to crowdfund a physical good. For non-profit, less commercialized or “shippable” campaigns, we’d stick with Indiegogo.