Popular crowdfunding platform, Indiegogo, announced today that it would begin offering equity crowdfunding options. Indiegogo has partnered with MicroVentures to let anyone invest in startups to make money via equity. MicroVentures will be handled entirely by MicroVentures, which means Indiegogo isn’t liable for any mishaps.
“Unlike rewards-based crowdfunding, with equity crowdfunding, individuals receive company shares, not just perks, in exchange for their equity investment,” writes Indiegogo in a blog post. With equity based crowdfunding, backers that are at least 18 years old have the chance to profit off of companies that perform well. Obviously equity based crowdfunding has its risks, so do your research before backing a company.
There are a few rules with Indiegogo’s equity crowdfunding. For one, there’s a $100 minimum investment but maximum investment will depend on the type of company seeking equity crowdfunding. Additionally, not every company will be offering equity crowdfunding, At the time of this writing, there are only a handful of businesses that are offering equity-based crowdfunding on Indiegogo. You can find a full list of equity-based crowdfunding Indiegogo campaigns here.
It’s hard to see equity crowdfunding become a core part of Indiegogo’s business, as most consumers won’t be willing to do the research and work required to financially back a startup or business. However, allowing more seasoned investors a platform to search for companies and projects to invest in is a great idea.
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