San Francisco-based crowd funding platform Indiegogo is getting more venture dollars to expand its worldwide operations. Kleiner Perkins Caufield and Byers along with Institutional Venture Partners, are leading a $40 million infusion into the company. Previous investors in the company include Insight Venture Partners, MHS Capital, Metamorphic Ventures and ff Venture Capital. This brings the total amount of money raised by the company to $56.5 million. In comparison, Kickstarter has raised $10 million.
Indiegogo and Kickstarter (which is backed by Thrive Capital and Union Square Ventures) are two of the leading crowd-funding platforms, each having its own unique twist on fund-raising efforts. Both companies originated from their co-founders frustration with the then-current way to raise funds for creative-arts oriented projects. Indiegogo was started in January 2008 and since then has hosted more than 190,000 campaigns from nearly 190 countries.
Indiegogo’s founder Danae Ringelmann, who spoke at our Roadmap Conference last November, had this to say about its creation:
I started working on what became Indiegogo probably back in 2001, 2002. I was the daughter of two small business owners here in San Francisco actually, and I watched them struggle for 30 years, because they could never get there business really growing because they could never access a tradition lone. They were kind of locked out of the traditional system, and so I actually went into finance after college to really understand how money flowed and how decisions got made. (Later) I’d help filmmakers and theater producers on the side and actually started to fail for the exact same reasons my parents failed, which was we just didn’t know the right people. So I wanted to go and start a company to put the power back in the hands of the people to decide which ideas and businesses and creative projects and nonprofits and everything should come to life. And that’s when I quit and did it.
Ringelmann recently told me that the company’s ideology is to let its community define the evolution of the service. While many creative art projects from around the globe have found backers on Indiegogo, the service has become particularly attractive for folks making gadgets and all sorts of gizmos.
“Designers use Indiegogo as a market testing, a market validation platform,” Ringelmann said at Roadmap. It does so by giving product designers/developers a lot of data about the future market opportunities. Devices such as Misfit Shine, Scanadu Scout, Canary, Kite Patch found success on Indiegogo before hitting the proverbial stands. And let’s not forget the wonderful Tesla Museum campaign by Matthew Inman of The Oatmeal.