Another Score for Crowdfunding: Indiegogo Raises $40 Million
The San Francisco-based fundraising platform secured a hefty pile of cash which it will use to grow globally and make its platform more mobile-friendly.
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The crowdfunding world just added another notch on its belt.
Indiegogo today announced that it secured $40 million in venture capital fundraising, which the crowdfunding platform will use to expand globally and improve the customer experience, primarily in terms of its mobile site. Institutional Venture Partners (IVP) and Kleiner Perkins Caufield & Byers (KPCB) lead the investment round, which was Indiegogo's second infusion of cash from investors.
San Francisco-based Indiegogo is already in 190 countries, but the platform wants to expand its reach. Currently, Indiegogo's services are offered in four languages -- English, German, French and Spanish -- and in five currencies -- U.S. dollar, Canadian dollar, euro, pound sterling and the Australian dollar. The crowdfunding platform, which was started by three classmates in 2008, currently has 85 employees running its global operations and boasted a 1000% jump in the amount of money raised on its platform in the past two years.
Related: As Comment Period Closes, Debate Over Equity Crowdfunding Rules Rages On
Indiegogo's diversity is what is making it attractive to investors. "Indiegogo's flexible funding model and open platform are helping it become the market leader in the rapidly growing crowdfunding space," said Jules Maltz, general partner at IVP, in a written statement. "The company is the Android of crowdfunding—easily accessible and open to all."
The popularity of crowdfunding has been surging in recent years and, thanks to a law passed in 2012, entrepreneurs will soon be able to raise money by selling pieces of their company online to anyone who has the cash and willingness. However, the SEC has been having a hard time writing rules for equity crowdfunding that both protect unprofessional investors and preserve the spontaneity and fluidity that makes crowdfunding appealing.
Related: Crowdfunding Seen Providing $65 Billion Boost to the Global Economy in 2014 (Infographic)