By KATHERINE ROSMAN.
Deep-Pocketed Companies Test the Market on Indiegogo
On Indiegogo Inc., one of the websites where entrepreneurs can raise cash to support their projects, well-financed startups like fitness-device maker Misfit Wearables Inc. and deep-pocketed companies like semiconductor producer Marvell Technology Group Ltd. MRVL -1.12% are testing the market for their ideas. Their campaigns challenge the notion that crowdfunding sites are solely for cash-starved upstarts with little access to venture-capital investors or bank lenders.
By using these sites, bigger companies are finding they can do valuable market research often while passing the costs on to willing donors.
Marvell, which took in $3.4 billion of revenue in the past fiscal year, recently used Indiegogo for a small fundraising drive. The company’s objective: gauge demand for Kinoma Create, a software and hardware tool kit that includes a Marvell chipset to help build app-controlled gadgets.