A few years back, Karen Klein, a 68-year-old bus monitor, gained attention when a video showing her being bullied by four schoolboys circulated online. However, the video sparked more than just outrage. Max Sidorov, a compassionate Canadian, launched a campaign on the crowdfunding platform Indiegogo to send Klein on a vacation. His initial aim was to raise $5,000, but the link gained traction and ultimately attracted over 32,000 supporters from 84 different countries, raising a staggering total of $703,168.
In the wake of this event, Indiegogo has introduced Indiegogo Life, a new standalone service dedicated to helping individuals raise funds for emergencies, medical bills, celebrations, and significant life events. “We noticed a rise in users creating campaigns for themselves, loved ones, or even strangers in need, so Indiegogo Life was developed to address that demand,” said Danae Ringelmann, Chief Development Officer.
While Indiegogo previously allowed charitable initiatives, Indiegogo Life is distinct because it focuses solely on cause-related fundraising and does not include any transaction fees. This move aims to facilitate the discovery of charitable causes and ensures that more funds go directly to those in need, possibly allowing Indiegogo to grow in an area where its competitor does not operate.
The ongoing challenge for Indiegogo has been to keep pace with its rival. Although it was founded a year prior to its competitor in 2008, Kickstarter has launched 1.3 times as many successfully funded projects. Many Kickstarter campaigns have gained notable attention, such as the Pebble smartwatch and a film revival like Veronica Mars, along with inventive products like The Coolest cooler, which features a built-in blender and speakers.
Indiegogo, however, has its own advantages, offering partial funding for projects that do not fully meet their goals, unlike Kickstarter, which refunds backers in such cases. One significant difference is that while Kickstarter prohibits charitable fundraising, Indiegogo has embraced this niche, with its personal causes category experiencing significant growth.
Thus, it is logical for Indiegogo to enhance visibility for this category, especially in light of Kickstarter recently easing its project launch requirements. The new guidelines allow greater flexibility for creators, similar to Indiegogo’s model. If Indiegogo effectively claims a stake in the humanitarian crowdfunding domain with Indiegogo Life, it could close the gap with its competitor.
Nonetheless, challenges facing crowdfunding platforms, such as potential fraudulent campaigns, also impact Indiegogo Life. The platform must be cautious, as history has shown instances of scams. Ringelmann mentioned that the vetting process for submissions follows the same protocols as standard campaigns, relying on algorithms to identify suspicious activity. Ultimately, responsibility falls on users to investigate campaigns before contributing.
Given these concerns, Indiegogo has become susceptible to misuse. For example, during Klein’s campaign surge, another user created a campaign titled “Love for Max Sidorov too,” capitalizing on the attention, which some considered morally questionable. This raises questions regarding the definition of a "personal cause."
Regardless, it ultimately comes down to user discretion, whether it’s funding a simple meal for someone or supporting quirky ideas like making potato salad.