No matter where you go – Kickstarter, Indiegogo, Patreon, GoFundMe, or somewhere else – one thing is clear. Crowdfunding is growing by leaps and bounds.
In North America alone, $17.2 billion was generated through crowdfunding campaigns in the year 2020. That’s up 33.7% from the year prior. Also in 2020 – the middle of a pandemic – almost 6.5 million crowdfunding campaigns were launched.
For many startups, the question is no longer “should we launch a crowdfunding campaign” but rather “where should we launch our crowdfunding campaign?”
And that’s a good question. One that’s often answered by defaulting to Kickstarter, because it is the most popular crowdfunding platform.
But what about Indiegogo?
The plain fact is that some products do really well on Kickstarter, and others do really well on Indiegogo. Each website has a dedicated community of people willing to back crowdfunding projects. Each website is capable of helping crowdfunders succeed.
But some products are just a better match for one platform over the other. Here’s how you can make your choice between Kickstarter and Indiegogo.
What is crowdfunding?
Crowdfunding is a way to raise money from a large group of people, usually online. Instead of relying on one investor, you get small amounts from many. It’s popular for launching new products, creative projects, and businesses. Kickstarter is the most popular crowdfunding platform, with Indiegogo being in the top 5.
Anyone with an idea can set up a campaign and ask for support. People who believe in the idea contribute. In return, they often get rewards like early access to the product.
Crowdfunding has changed how people fund projects. It makes it easier to bring ideas to life without needing a big loan or investment. All you need is a good pitch and an audience willing to back you.
What is Kickstarter?
Kickstarter is one of the oldest crowdfunding platforms, having started back in 2009. It’s known for creative projects like art, games, tech, and – of course – board games.
You can’t just launch any project you want, though. Kickstarter has strict rules on what is and isn’t eligible to fund on their platform.
Plus, Kickstarter is based on an all-or-nothing model. If you don’t hit your goal, no one’s card is charged, and you get nothing.
What is Indiegogo?
Indiegogo is another popular platform. It’s less popular than Kickstarter but has a more flexible platform. Tech and gadgets seem to do particularly well on Indiegogo.
Indiegogo allows a broader range of projects and has fewer rules. That means some projects, like those related to personal causes or charitable campaigns, can be funded through Indiegogo, even when Kickstarter says no.
Indiegogo also allows creators to choose between all-or-nothing or keep-what-you-raise funding options. That means if you reach, say, 70% of your goal, you can keep the funds you raise, whereas on Kickstarter you would get nothing.
What other crowdfunding platforms are there?
There are tons of crowdfunding platforms online. Many, like Patreon or GoFundMe, don’t necessarily immediately come to mind when you say “crowdfunding”, but still count because they are based on raising small donations from a lot of different people.
Bearing that in mind, there are plenty of crowdfunding platforms besides Kickstarter and Indiegogo. Some are better for personal causes, while others focus on helping startups raise capital. Here’s a quick look at some of the most popular alternatives:
- GoFundMe: Best for personal causes and emergencies.
- Patreon: Focuses on ongoing support for creators through monthly subscriptions.
- StartEngine: A platform for equity crowdfunding, aimed at startups seeking investors.
- Gamefound: A crowdfunding platform exclusively for board games.
- Crowdfunder: Focuses on helping startups raise capital from investors.
- Fundable: Allows startups to raise equity or rewards-based funds.
- Republic: An equity crowdfunding platform for startups and real estate.
- Crowdcube: A UK-based equity crowdfunding platform aimed at helping companies raise investment.
These platforms serve different purposes. Some focus on personal causes, while others target startups or ongoing projects. Choose based on your needs—equity, rewards, or charitable giving.
Not every platform fits every project. For instance, GoFundMe works well for raising money in emergencies but wouldn’t be suitable for launching a tech startup. Equity platforms like StartEngine or Republic are perfect if you’re looking to offer investors a stake in your company.
3 most important factors to choose between Kickstarter vs. Indiegogo
When you choose between Kickstarter and Indiegogo, there are only three factors that should make a decisive difference: your product type, the rules, and whether you want partial funding access.
There are plenty of differences between the platforms, to be sure, and we’ll talk about those. But these three factors are, by far, the most important. Below is explanation of why this is the case:
1. What platform will be the best fit for your product?
Kickstarter is best for creative projects. Think games, films, and art. Even Kickstarter’s branding leans heavily into creativity and artistry, in much the same way that Adobe’s does.
Indiegogo, on the other hand, covers a broader range of categories. But among them, projects in the technology, fitness, outdoor, and home categories tend to do well.
You need to go to the platform your audience expects you to be on. Launching a board game on Indiegogo would be a mistake. But that would not be the case if you launched a new consumer electronic product on Indiegogo.
2. Are your product and company able to follow the rules?
Kickstarter has strict guidelines. It doesn’t allow charities, personal causes, or any project that isn’t focused on creation.
Indiegogo’s rules are more relaxed. If your project doesn’t follow Kickstarter’s rules, this could be your better option. This would be the case for charity or for personal causes. There’s simply no use in trying to launch projects like that on Kickstarter, since the manual review process will eliminate them before they have a chance.
3. Do you want the ability to take partial funding if you underperform your goal?
Kickstarter is all or nothing. You either hit your goal, or you get nothing. It’s great for ambitious projects with big goals, where not having enough capital would lead to the creators having to invest far too much of their own money to ship far too few products.
Indiegogo offers flexible funding. If you want to keep whatever money you raise, no matter if you hit your target, Indiegogo’s flexibility gives you that option. To be clear – Indiegogo still offers all-or-nothing funding as an option too. But the point is that you can choose in advance to keep the funds if you don’t raise enough to reach your goal outright.
Flexible funding is useful for creators who can still succeed even with partial funding. If you want to take advantage of that, you can’t use Kickstarter.
Kickstarter (Pros)
Kickstarter is a household name in a way that other crowdfunding platforms simply aren’t. It’s this brand name – and the community that comes along with it – that set Kickstarter apart since it helps with reach, success odds, media exposure, and community-building.
1. Kickstarter has a larger audience.
Kickstarter is the largest crowdfunding platform. Even though you should build your own audience before launching, you will still see a huge spike in attention just by the act of launching on Kickstarter. This makes it easier to attract even more backers, creating a virtuous cycle.
2. Kickstarter success rates are higher.
Kickstarter campaigns generally have a higher chance of meeting their funding goals compared to other platforms. The all-or-nothing model encourages backers to help you reach that target. This gives creators a better shot at full funding.
3. The media loves Kickstarter.
Kickstarter projects often get media coverage, especially if they are unique or innovative. The word “Kickstarter” itself rather than “Indiegogo” or “Patreon” or some other crowdfunding platform tends to get the attention of journalists.
When you land press coverage, it can help drive even more attention and backers to your campaign. It’s simply easier to do that with Kickstarter than other platforms.
4. Kickstarter’s fixed funding model reduces the risk of being underfunded.
By only allowing funds to be collected if the goal is met, creators avoid being stuck with less money than they need. This ensures that you get enough resources to complete your project. It’s a safeguard against underperformance.
In fact, Kickstarter’s strict insistence on all-or-nothing funding has likely contributed to its success as a platform. Reducing the risk of creators having to fulfill orders without enough funding reduces the risk of backers paying for products and receiving nothing. It likely has helped Kickstarter’s reputation.
5. Kickstarter generally has better analytics.
Both Kickstarter and Indiegogo have built-in analytics tools. But Mark Pecota, CEO of LaunchBoom, says in his article comparing the two platforms that “in my experience, Kickstarter has better integration and the data tracked in Google Analytics almost identically matches the data tracked on your Kickstarter campaign.”
6. Kickstarter has a thriving community of creative projects.
Kickstarter is home to a passionate, engaged audience that loves supporting creative ventures. This community boosts projects in categories like art, film, and games. It’s hard to measure the impact of culture on a crowdfunding platform overall, but let’s not forget that Kickstarter is home to “superbackers” who have supported more than 25 projects with pledges of $10 or greater in the last year.
7. Kickstarter will pay all funds after 14 days, holding none back.
Once your campaign ends successfully, Kickstarter transfers the funds quickly. The 14-day period is short, allowing you to start using the money right away. There are no additional holdbacks or delays. Indiegogo, by comparison, holds onto about 5% of the funds to issue to backers in the event of refunds.
Kickstarter (Cons)
Kickstarter also has its downsides. The platform has some limitations that you should be aware of prior to launching.
1. Kickstarter manually reviews projects and has strict rules.
Each project must pass Kickstarter’s approval process, which can be time-consuming. The platform has strict guidelines on what projects are allowed. This can be a hurdle for creators with unconventional ideas.
2. Flexible funding is not an option on Kickstarter.
Kickstarter uses an all-or-nothing model, meaning you must meet your goal to get any money. If you fall short, you get nothing. Some creators simply hate the idea of working hard on a crowdfunding campaign only to end up empty-handed and this lack of flexible funding can be a dealbreaker for certain projects.
3. Kickstarter’s page builder is notoriously hard to use.
Kickstarter’s tools for creating campaign pages are known for being clunky and difficult to navigate. Creators often struggle with formatting and design. This can make it hard to build a professional-looking page.
4. Kickstarter does not have a platform for post-campaign fundraising.
Once your campaign ends, there’s no built-in way to continue raising funds on the platform. Kickstarter doesn’t offer tools for ongoing support like some other platforms do. This limits creators who want to extend their campaigns.
This forces a lot of creators to use third-party tools like BackerKit, Gamefound, or even Indiegogo InDemand to continue raising funds after the completion of their projects.
5. Kickstarter has relatively few project categories.
Kickstarter focuses heavily on creative projects and has fewer categories for business or personal causes. This can make it hard for some campaigns to find a home. If your project doesn’t fit their mold, you might have a hard time raising enough funding.
Indiegogo (Pros)
Though it is less popular than Kickstarter, Indiegogo has some attractive features for campaign creators. In particular, it’s known for its flexibility and openness to various project types.
1. Indiegogo allows flexible funding.
Unlike Kickstarter, Indiegogo gives you the option to keep whatever you raise, even if you don’t hit your full goal. This reduces the risk of walking away empty-handed. Flexible funding is perfect for creators unsure about meeting their target.
2. Indiegogo has a broader range of product categories.
Indiegogo welcomes projects that range from creative endeavors to personal causes and tech innovations. That makes it more versatile for projects that might not fit into Kickstarter’s stricter guidelines.
3. Indiegogo is open to more countries.
Indiegogo is available to creators in a wider range of countries than Kickstarter. This makes it more accessible to a global audience. It’s a great option for international campaigns seeking a broader reach.
4. Indiegogo allows for post-campaign funding via Indiegogo InDemand.
Once your campaign ends, you can continue raising money through Indiegogo InDemand. This feature lets you keep accepting contributions even after your initial goal is met. It’s perfect for projects that want to maintain momentum.
If you want to do this with Kickstarter, your only choice is to use a third-party pledge manager such as BackerKit. Although it should be noted that Kickstarter has been researching and beta testing a system for post-campaign funding.
5. Indiegogo’s page builder is more flexible.
Indiegogo’s tools for creating your campaign page offer more customization options than Kickstarter. You have greater control over the design and layout. This flexibility makes it easier to create a polished, professional page.
If you are particularly tech-savvy, you’ll be pleased to know that Indiegogo’s page builder even supports basic HTML and CSS if you want to get a little more hands-on with your page styling.
6. Indiegogo collects backer information immediately after pledging.
As soon as someone contributes to your campaign, Indiegogo collects their contact and shipping details. This means you have everything you need to fulfill orders quickly. Early access to backer info helps streamline fulfillment.
7. Indiegogo has a thriving tech and gadgets community.
Indiegogo is particularly well-known for its tech and gadgets campaigns. If your project falls into one of these categories, you’ll find a ready-to-back community of interested backers. This niche focus can boost your campaign’s success in the tech world.
Indiegogo (Cons)
Indiegogo has some drawbacks, especially when compared to Kickstarter. It’s important to weigh these cons before deciding to launch a project on the platform.
1. Indiegogo has lower success rates.
As many as 37.7% of Kickstarter campaigns succeed. Only 17-18% of Indiegogo campaigns do the same.
To be clear, these are base odds of success that don’t consider the product category or the skill of the crowdfunding creator. But even still, this can be awfully discouraging for creators hoping for guaranteed success.
2. Indiegogo has a smaller audience.
While Indiegogo is a popular platform, it doesn’t have the same massive audience that Kickstarter does. Fewer potential backers mean you might have to work harder to promote your campaign. This smaller pool of users limits your campaign’s exposure.
Again, if you are launching in the right category, this is less of an issue.
3. Indiegogo campaigns aren’t as attractive to the media as Kickstarter campaigns.
Kickstarter has a stronger media presence, often drawing more attention from journalists and bloggers. Indiegogo campaigns don’t typically get as much press coverage. This lack of media buzz can make it harder to generate excitement.
4. Indiegogo holds 5% of funds for refunds.
Indiegogo keeps 5% of your funds on hold in case refunds are needed. This is a relatively minor concern if you budget for it, but it can still be annoying if you aren’t aware of this fact. Make sure you consider how immediate your cash flow needs are before you launch an Indiegogo campaign.
5. Indiegogo charges backers immediately, rather than after the conclusion of a successful campaign.
On Indiegogo, backers are charged as soon as they pledge, regardless of whether the campaign hits its goal. For cash flow purposes, this can be excellent, but until those orders are fulfilled, accountants will consider that money “unearned revenue.”
Now to be clear, this is also the case with Kickstarter, but since you receive rewards after the campaign is over, that’s less time that unearned revenue will be sitting on your books.
There’s also a psychological element to consider for backers. Some backers may hesitate to pledge if they don’t know whether the campaign will succeed. This could affect your overall funding.
Final Thoughts
Kickstarter and Indiegogo both have well-established communities, and both can be a great place to launch your crowdfunding campaign.
The most important thing to consider is: “what kind of product am I selling?” Games, film, art, publishing, and design do really well on Kickstarter. Technology, fitness, outdoor, and home do really well on Indiegogo.
After considering product category, it’s a matter of subtleties. What’s more important: higher chances of success or openness? Does flexible funding move the needle? What about the ease of transitioning into a post-campaign pledge manager?
These questions will help you determine whether Kickstarter or Indiegogo is right for you and your business.
But no matter what you choose – good luck! Let us know if you need any help shipping orders.
