Kickstarter vs. Indiegogo: where to go
In the previous article, we covered the basics of crowdfunding and discusses what it is all about. Now it’s time to have a close look at the two most popular crowdfunding platforms – Kickstarter and Indiegogo.
Actually, all crowdfunding platforms have a similar principle of work: you create and submit your project, ask for contributions from backers and work to reach your target money goal. Placing your product on the right platform is extremely important in order to get the best funding opportunities and achieve greater visibility.
This basic principle is applied both to Kickstarter and Indiegogo, but still, they have substantial differences. Let’s deep dive into the unique peculiarities of these crowdfunding platforms in order to help you make a more informed decision about which platform to choose for your campaign.
|Headquarters||Brooklyn, New York||San Francisco, California|
|Successfully funded projects||157,187||They do not publicly disclose|
|The overall campaign success rate||36,64%||They do not publicly disclose|
|Mission||Help bring creative projects to life||Empower people to unite around ideas that matter to them and together make those ideas come to life|
|Types of projects||Creative projects||Almost anything|
|Available||US, UK, Canada, Australia, New Zealand, the Netherlands, Denmark, Ireland, Norway, Sweden, Germany, France, Spain, Italy, Austria, Belgium, Switzerland, Luxembourg, Hong Kong, Singapore, Mexico, and Japan||Anywhere in the world|
|Funding options||All-or-nothing: if the target amount is not met, all money goes back to the backers||Two options: 1. All-or-nothing: if the target amount is not met, all money goes back to the backers. 2. Flexible funding: you can keep what you earned|
|Fees||5% of total funds raised if you reach your goal. In case you don’t meet the target - they don’t charge. Payment processing fee - 3-5%||5% of all funds raised, not of the goal amount. Payment processing fee - 3% |
|Campaign review and approval process||Stringent||Less strict|
|Fully working prototype required||Yes||No|
|Extensive support network||No||Yes|
|Helpful newsletter to boost product sales||No||Yes|
|Charging backers||Your credit card is not charged until the end of the campaign. You make a pledge and you can cancel it at any time||Your credit card is charged right away|
|Equity crowdfunding||No||Yes. You can raise money from backers and offer them equity|
|Disbursement||Stripe. Money is sent 20 days after the end of the project||PayPal, wire transfers. Money is sent 15 days after the end of the project|
Kickstarter and Indiegogo seem very similar at first glance, however, there is a list of noteworthy differences between them. Both platforms have similar goals, missions, and concepts, but they differ in their unique features and strengths. Both platforms are credible, reliable and trusted. Both offer extensive functionality, feature-richness, and a considerable campaign success rate. There is no answer which one of the platforms is better, but we can compare them to find out which one is more suitable for every individual campaign.
Kickstarter loves exciting creative projects with visually appealing designs. Also, they have a really rigorous approval procedure, so, make sure you have decent content, organized marketing plan, and clear goals.
Ingiegogo is best suitable for small businesses, which are still on the concept stage, as they don’t require a fully-functional product prototype and don’t have that strict approval procedure.
Kickstarter is more popular crowdfunding platform, and it offers the broadest exposure of your project to investors, but, on the other hand, Indiegogo provides a possibility to select a flexible funding model and keep all the money you’ve collected.
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