Richard Branson, Max Levchin Get Behind Crowdfunding With Investment in Indiegogo
This story was updated at 1:52 pm E.T.
The crowdfunding industry is growing exponentially, and as it becomes an ever more popular way for entrepreneurs to raise money to fund their dreams, it’s getting attention from an elite tier of investor entrepreneurs.
San Francisco-based crowdfunding site Indiegogo announced today it has secured a second investment in under six months (the amount was not disclosed). Investors in the round include Sir Richard Branson, the founder of Virgin Group; Max Levchin, the co-founder of PayPal; Maynard Webb, investor and tech executive that sits on various prominent boards; and Megan Smith, an entrepreneur herself and a vice president at Google[x].
"One of the biggest challenges faced by entrepreneurs is access to capital," said Branson in a written statement released today. "Indiegogo helps to solve that problem and empowers anyone in the world to do well and do good.”
At the end of January, Indiegogo announced a $40 million Series B round of venture capital funding from a gaggle of institutional investors including Institutional Venture Partners and Kleiner Perkins Caufield & Byers. At the time, the crowdfunding company said the funds would be used for hiring, expansion and mobile. This time around, it seems like the company is continuing to focus on these pillars. This latest round will be primarily used to grow Indiegogo’s presence globally and to improve the crowdfunding site’s mobile application.
Indiegogo was launched in 2008 and so far more than 200,000 campaigns have been launched on the platform. More than 7,0000 campaigns are active at any given moment and currently, about 30 percent of Indiegogo campaigns come from outside the U.S.
“As we continue to innovate, Indiegogo will benefit from the unique perspectives of such an experienced and diverse group of investors. We founded Indiegogo to democratize access to capital for all, and I am excited that our new investors are joining us in this mission," said Indiegogo co-founder Danae Ringelmann of the company's latest round of investors.
Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.