Kickstarter rival Indiegogo raises $40 million

Crowdfunding platform announces Series B round of venture financing from IVP and Kleiner Perkins.

Kickstarter rival Indiegogo announced today that it has raised $40 million in a Series B round of venture financing, which The New York Times notes is meant to "speed growth." The money came from venture capital firms IVP and Kleiner Perkins.

The San Francisco-based Indiegogo said the funds would be used for "making key hires, expanding globally, and improving the user experience with a focus on mobile, personalization, and trust."

Indiegogo's size and reach doesn't match Kickstarter. That site that has spawned numerous high-profile video game projects like Tim Schafer's Broken Age, the Ouya console, Oculus Rift, and Wasteland 2, among many others.

However, Indiegogo is proving attractive for some developers as well. Just yesterday, Square Enix launched its "Collective" crowdfunding program through a partnership with Indiegogo. In addition, Lab Zero Games successfully took to Indiegogo last year to raise money for five Skullgirls DLC characters.

Unlike Kickstarter, which is all-or-nothing, Indiegogo creators have the option of creating campaigns that allow them to keep what they earned--even if they don't reach their target.

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Eddie Makuch

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.
21 comments
MN121MN
MN121MN

Umm... I wonder how Indiegogo policy works.... From this article, it seems Indiegogo has tendency to support project starters, which makes me wonder what Indiegogo would do if these projects are actually scams....


But I also wonder how long Indiegogo can survive. Venture capitalists only seek short-term maximum profits, and they won't hesitate to drive the company to the ground if it means making more profit.

Nintendo_Man
Nintendo_Man moderator moderator

That does explain why there are multiple help me fund a boob job for my career and even one guy asking people to fund him money to buy a XB1. None of this shit is allowed on Kickstarter.

Gelugon_baat
Gelugon_baat

I am going to have to read through IndieGoGo's fineprint soon. With participants being able to keep what contributions come their way regardless of whether the target is reached, I wonder whether the participants are obliged to fulfill their promise or not if the target is not reached.

RobDev
RobDev

did they raise that $40 million on kickstarter1

AyatollaofRnR
AyatollaofRnR

"Unlike Kickstarter, which is all-or-nothing, Indiegogo creators have the option of creating campaigns that allow them to keep what they earned--even if they don't reach their target.'

I'd be pretty reluctant to back a project on Indiegogo then, unless I knew it would still go ahead if they didn't reach the funding target. Presumably they are asking for the minimum amount required to complete the project though.

PlatinumPaladin
PlatinumPaladin

I don't know why but having more than one of these big crowd-funded websites seems wrong. I don't have any logical reasoning for it, but yeah.

LOXO7
LOXO7

Crowd funding.  Keep what they earn.  Hmm.

DarkSaber2k
DarkSaber2k

No wonder Squeenix went with Gogo if they get to keep the money even if (or more likely, WHEN) they don;t hit their funding targets. Again, doesn't raise confidence if a company is quite happy to take your money even if they aren't meeting what they feel is the minimum required amount to get the game released.

91210user
91210user

I wantedStar Citizen to hit that mark first!

jeremy-
jeremy-

@PlatinumPaladin wrong, you need at least 2 of anything. Otherwise you have a monopoly and an eventual degradation of value is a company shifts from having static profit margins to profit targetting and less ethical business standards. Its basic micro-economics.

nl_skipper
nl_skipper

@PlatinumPaladin  Depends on how much of a cut they are taking off the top for providing the service... get ready to see many more of these initiatives if the people involved get to keep a share of the donations just for providing a forum.  I suppose they do too, or else what's in it for them...?

chibi-acer
chibi-acer

@91210user This is $40 million in venture capital funding, not crowd source funding.  IndieGoGo (the company itself) raised the money from investors, not a crowd funded campaign.

Deadlysyns87
Deadlysyns87

@91210user We all Want EA to make an amazing new game. Time to remember Wants are nothing in this world

chibi-acer
chibi-acer

@nl_skipper @PlatinumPaladin Kickstarter takes 5% of the overall take.  The financial transactions (Amazon by default) takes another 3-5%.


IndieGoGo takes 4% if you meet your minimum goal, and 9% if you fail to meet the goal.  Not sure what their transaction overhead is.

DarkSaber2k
DarkSaber2k

@Deadlysyns87@91210userI think most people would prefer EA crumble rather than carry on making games. Try not to assume you speak for everyone next time, k?