Indiegogo raises $40M in private equity
Crowdfunding platform says Canada its second biggest market
Crowdfunding platform Indiegogo has raised $40 million US in private equity that it plans to sink into improving its services, including those in Canada.
Indiegogo entered Canada in December 2012 and says Canada is now its second-biggest market after the U.S.
The site makes it possible for business ventures, charitable campaigns or creative projects to reach out through the internet for funding for specific projects.
The $40 million raised through private equity firms will be devoted to making Indiegogo more mobile-friendly and improving its global reach, said CEO Slava Rubin in an interview with CBC News. Among its investors are Institutional Venture Partners and KPCB, which have backed new media companies such as Netflix and Snapchat.
Indiegogo already has a francophone version and handles Canadian dollars, but Rubin says he wants to include more languages and other localized options.
It has plans to diversify into different currencies and languages using the new capital, he said. Developing trust and transparency in handling funds is another priority.
“We want to improve the product so we can get more localized and make sure we have the best possible experience,” he said.
Since its inception, 200,000 campaigns have been launched on Indiegogo and currently about 10,000 campaigns are on the go at any one time in 70 to 100 countries, Rubin said.
Mobile is an expanding field for Indiegogo as for every tech-related company.
“We want to make sure we have a great experience on a mobilized website – iPhone apps, Android apps, or other new products that we’ll be adding,” Rubin said.
This is Indiegogo's second private fund-raising campaign – it first turned to private equity to fund expansion in May 2012. Rubin said it may turn to capital markets in the future.
“Going to capital markets is something we may consider in the future, but not something we thought about right now. "We’re trying to focus on the individual and trying to make sure they have to best possible experience,” he said.