Imagine launching a crowdfunding campaign and immediately shipping products to your eager backers! That dream is about to become a reality, thanks to Indiegogo's revolutionary new "Express Crowdfunding" format. Forget waiting until the campaign ends to start fulfilling orders – Indiegogo is shaking things up, and it could change the crowdfunding game forever.
Reported by Jay Peters, a senior tech and gaming reporter at The Verge (joining in 2019 after a stint at Techmeme), this move signifies a major shift in how Indiegogo operates. But what's driving this change? And how will it impact creators and backers alike?
The driving force behind Express Crowdfunding is Indiegogo's recent integration with the technology of Gamefound, a board game crowdfunding platform acquired by Indiegogo. According to Indiegogo spokesperson Maciej Kuc, this technological overhaul presented both challenges and opportunities. Kuc explained to The Verge that Gamefound's infrastructure was built on the assumption that campaigns raise funds before production and fulfillment begin – a model where a waiting period is built-in. This meant Indiegogo's existing system wasn't optimized for creators who already had products ready to ship.
And this is the part most people miss: The traditional crowdfunding model inherently introduces delays. Think about campaigns for complex gadgets, for instance. Creators often plan to ship shortly after funding, but the platform requires them to wait until the campaign concludes, backers' payment info is processed, and shipping addresses are collected. This can lead to significant frustration, as highlighted by the case of Ayaneo's Pocket AIR Mini retro gaming handheld.
Android Authority reported on the Ayaneo Pocket AIR Mini campaign, where the company initially aimed to ship the device by the end of November. However, due to what Ayaneo described as "platform policy requirements," they were unable to collect shipping addresses until December 5th. The process of requesting the transition to the Pledge Manager phase (where addresses are gathered) takes approximately three days. This pushed the estimated shipping date to "around" December 10th. These kinds of delays can erode backer confidence and negatively impact the overall campaign experience.
Indiegogo's Express Crowdfunding aims to eliminate these bottlenecks. By allowing creators to ship products during the campaign, it promises to deliver a faster, more satisfying experience for backers. Kuc anticipates that the new format "should be available" in early February. This could be a game-changer, particularly for creators with readily available inventory. Imagine a board game campaign where the first backers receive their copies within days of pledging! Or a tech gadget campaign where early adopters get their hands on the product weeks ahead of schedule.
But here's where it gets controversial... Will Express Crowdfunding work for all types of projects? What about campaigns that rely on large funding goals to begin production? It seems best suited for projects that are already manufactured, or nearly so. This could potentially create a divide, favoring creators with existing resources over those who rely on crowdfunding to bring their ideas to life from scratch.
What do you think? Is Express Crowdfunding a step forward for the industry, or does it risk creating an uneven playing field? Will it primarily benefit established companies with existing products, or can smaller creators leverage it effectively? Share your thoughts and predictions in the comments below!
