This isn’t a new idea in the world of crowdfunding, but it’s a good one, and word has been rattling around for some time now that Indiegogo has been planning a way to help established companies enter the new market that crowdfunding has created. Critics who say this wasn’t the intended purpose of crowdfunding should take note that the companies as well as the consumer will benefit from this new focus. It will allow brands test the waters for new products, and the public will vote with their dollars which products will ultimately get made. This should improve the value for consumers from a price perspective as well, as brands will learn quickly if they aren’t creating enough value for the proposed product’s audience.
TechCrunch says:
Indiegogo is going to work with General Electric, Harman International Industries, Hasbro and Shock Top at first. Compared to newly launched startups, these companies don’t need cash to launch new products. It would be unfair to talk about crowdfunding for Fortune 500 companies.
Instead, this new focus should be seen as a way to test consumer’s interest by leveraging Indiegogo’s audience and reach. General Electric can create a pre-order campaign and see if people actually want these new products.
Now, there’s a risk that these large aging companies will use Indiegogo as a way to market themselves as edgy companies. Indiegogo will have to make sure that these big clients are showcasing actually interesting products.
Read the full article on TechCrunch here: http://techcrunch.com/2016/01/06/indiegogo-now-wants-fortune-500-companies-to-create-pre-order-campaigns/
We’re looking forward to seeing how their initial campaign perform, as we’ve been working with established companies to enter the crowdfunding space since our inception on both Kickstarter and Indiegogo.
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