When it comes to crowdfunding platforms for startups, the two leading platforms are Kickstarter and Indiegogo. Both provide entrepreneurs the opportunity to raise substantial capital from a large pool of potential stakeholders, with both being widely regarded as the ‘go-to’ sites for crowd-funding.
Kickstarter is generally considered the platform with the strictest guidelines, and is best for new innovative products that are also visually appealing. Projects are given an all-or-nothing goal that needs to be met in order to receive the funds. This means if the project isn't fully funded, then the creators won't receive any money. That being said, it is a great platform to create an emotional connection between those backing the project and those creating it, creating an incredibly powerful and successful platform when it comes to larger funding rounds.
Indiegogo, on the other hand, affords a bit more flexibility; projects have the option of an ‘all-or-nothing’ approach but also the choice of ‘flexible funding’. This allows project owners to still collect funds even if the goal is not met in full, making it a very attractive alternative for those that are less confident about meeting their goal. It also appeals to those who want to deliver a product even if their goal is not reached.
Ultimately, the choice of which platform is best for your start-up will depend on your individual situation. Your goals, product specs, and desired outcome should all be taken into consideration before making a final decision. Each platform provides its own unique opportunities as well as restrictions, so taking the time to research both thoroughly is key. While each one has its own advantages, in the end both offer a way to launch a successful crowdfunding campaign.
