Indiegogo Launches Equity Crowdfunding, Allowing Anyone to Invest in Startups & Growing Companies
New Service Launches in Partnership With Equity Crowdfunding Platform MicroVentures
Indiegogo, the global platform for entrepreneurs to bring their ideas to life, has launched a new equity crowdfunding service allowing anyone to invest in startups and growing companies.
By utilizing new equity crowdfunding regulations that took effect in May, the new service provides entrepreneurs on Indiegogo the opportunity to raise funds from interested investors in exchange for financial stakes in their company, and provides funders on Indiegogo the opportunity to own a financial stake in innovative startups.
The equity crowdfunding rules passed by the Securities and Exchange Commision (SEC) as part of the 2012 JOBS Act allow anyone the opportunity to invest in companies online. Previously, only a select group of accredited investors that met a certain wealth threshold could invest in early-stage companies.
Indiegogo has created a joint venture with MicroVentures to launch an equity crowdfunding portal. Microventures is a leader in the equity crowdfunding space and has helped companies raise over $100M through 200+ deals since 2010. More than 95% of the equity crowdfunding campaigns on MicroVentures have been funded. Investment opportunities will be listed on both Indiegogo and MicroVentures, with the transaction being made on the MicroVentures platform. Startups that run their equity crowdfunding campaign through this new service also benefit from a simple regulatory filing process powered by iDisclose, which automates legal document preparation through an online questionnaire.
Indiegogo has helped entrepreneurs raise more than $1 billion from over 8 million backers through 700,000 rewards-based crowdfunding campaigns. With more than 15 million visitors to Indiegogo every month, the company is now well-positioned to rapidly expand the market for investment crowdfunding by introducing both investors and entrepreneurs to the new equity opportunities.
As a leading advocate for equity crowdfunding since the company launched, Indiegogo executives attended the White House ceremony where President Obama signed the JOBS Act in 2012.
“Our mission has always been to make it easier for individuals to raise money for projects they are passionate about and this is the latest way we’re helping entrepreneurs access the financing they need while also giving backers the chance to invest in new companies,” said David Mandelbrot, CEO of Indiegogo. “Since Indiegogo first launched we’ve wanted to offer these sort of investments, and we’re very excited to be officially giving the millions of people who visit our platform every month the chance to get involved with equity crowdfunding opportunities.”
“When we started MicroVentures in 2009, the idea was to let everyone invest. At the time, the regulations were too stringent so we focused on providing venture capital access to accredited investors at fractions of the investment minimums previously required. We pride ourselves in our rigorous investment screening process and institutional quality due diligence,” said Bill Clark, CEO of MicroVentures. “We are excited to partner with Indiegogo to bring that same level of due diligence and support to all investors.”
The new equity crowdfunding service on Indiegogo is launching with four new Title III offerings:
- ArtCraft Entertainment: Funding the creation of Crowfall, the highly anticipated massively multi-player video game touted as a Throne War simulator.
- Play Impossible: Powerful, miniature sensors that transform athletic balls into game controllers connected to a smartphone. Funds to be used to allow the company to grow more quickly.
- BeatStars: A social music marketplace and distribution company where over 350,000 music producers and recording artists collaborate, sell, distribute and share their music worldwide.
- Republic Restoratives: A women-owned craft distillery and cocktail bar in the heart of Washington DC, is seeking capital to expand their product lines and distribution market.
The launch of equity crowdfunding is the latest effort by Indiegogo to help entrepreneurs throughout the entire lifecycle of their projects. Indiegogo has recently introduced new services meant to support entrepreneurs beyond the crowdfunding stage of their business, including InDemand, which enables campaigns to continue accepting pre-orders after their crowdfunding efforts end, and the Marketplace, an Indiegogo storefront for business owners to sell products that are shipping now. Collaborations with Brookstone, Arrow, and Amazon also help entrepreneurs on Indiegogo get their products to retail quicker and more easily than ever before.