Indiegogo to use fresh $40M funding to grow outside the US

IndieGogo-LogoIndiegogo, the free-spirited and liberally-curated crowd-funding platform of the digital world, managed to secure a handsome $40 million funding to boost its global expansion. Fired up by last year’s 3-fold growth in Europe in terms of user and member counts, San Francisco-based company will most likely spend the money on strengthening international operations and teams.

New round of funding is led by Institutional Venture Partners (IVP) and Kleiner Perkins Caufield & Byers (KPCB) and included additional funding from existing investors Insight Venture Partners, MHS Capital, Metamorphic Ventures and ff Venture Capital.

Co-founder Slava Rubin said the financing would be used to make key hires, expand globally and focus on mobile users, personalisation and trust. Rubin said that within a decade crowdsourcing for projects will be seen as a standard source of funding. He is very confident that this decade will be about crowdsourcing, as 90s were about commerce and 2000s were about social.

In a Webrazzi interview recorded during DLD14 conference, he said they have hundreds of competitors in the market but will lead the crowdfunding arena with its unique and liberal approach. Because they ‘bring the crowd to crowdsourcing’ says Slava. Kickstarter, the crowdsourcing leader of the day in terms of market share, has more restrictions on the campaigns to be launched on the platform. It seeks a “creative” element and “business-orientedness” in the proposed campaigns whereas Indiegogo allows social responsibility and charity campaigns as well.

Founded in 2008, Indiegogo has hosted more than 190,000 campaigns so far from 190 countries. Company says funds raised on Indiegogo have grown by 10-fold in last two years.

In praise of the funding, John Doerr, general partner at KPCB said Indiegogo is playing a central role in the transformation of the global economy and they are excited to partner with it to help support the dreams and aspirations of the Indiegogo community and continue establishing Indiegogo as the leading international platform for funding new ideas and innovation. Jules Maltz of IVP said in the press release that Indiegogo’s flexible funding model and open platform are helping it become the market leader in the rapidly growing crowdfunding space and the company is ‘the Android of crowdfunding’.

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