Slava Rubin’s 4 reasons for crowdfunding (besides the money)

The UpTake: Crowdfunding isn’t all about the money. In fact, says Indiegogo CEO Slava Rubin, there are four reasons to launch a crowdfunding campaign that are more important than cash.

Of course, you want to raise money when you launch a campaign on a crowdfunding site. But that’s not the best reason for doing it, says Slava Rubin, founder and CEO of Indiegogo.

In fact, he said at an event hosted by the Kauffman Foundation in Kansas City today, “The money is the least valuable,” reason to launch and maintain a crowdfunding campaign.

Here are four reasons more powerful than money, according to Rubin:

Market validation. A successful crowdfunding campaign is proof that a market exists for your product or service. That, in turn, can help you get funding from VCs, angels, even banks, because you’ve just removed some of the risk from the equation.
Testing your marketing. If you’re going to launch, you’re going to have to sell, and a crowdfunding campaign is a cheap way for you to exercise your marketing chops.
Extra Promotion, interesting crowdfunding campaigns get written about, and sites like Indiegogo also go out of their way to promote campaigns, adding a multiplier to the marketing you try out.
Data capture. You cut out the middle man between yourself and your market when you crowdfund, and reap the reward not just in dollars, but in access to information like your fans’ contact information, giving you the opportunity to build a long-term relationship with the people who fund you.
Rubin said those reasons, along with the money, make a powerful case for crowdfunding. And that case is likely to get more powerful with time.

“This will go down as the decade of crowdfunding,” he said. “By the end of this decade, people won’t talk about crowdfunding…it will just be layered into the fabric of funding.”

Source: Upstart Business Journal – Kent Bernhard Jr
Link: http://upstart.bizjournals.com/money/loot/2013/08/27/slava-rubins-4-reasons-for.html

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

TechCrunchHow hate speech crowdfunding outfit Hatreon crept back online ...TechCrunchIf you want to make a living creating white supremacist content, you're probably not going to do it via sites like Kickstarter and Patreon, which prohibit hate speech. Fortunately there's Ha [...]

Coindesk (press release) (blog)Crowdfunding Giant Indiegogo Opens to ICOs - CoinDeskCoindesk (press release) (blog)The startup revealed today that, through an existing partnership with MicroVentures, it will begin offering services to projects seek to use the blockchain funding model. [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

Ypsi crowdfunding statistics reveal startling disparityConcentrateWe all hear the words "Kickstarter," "Patronicity," and "GoFundMe" on an almost daily basis, but how much good do those campaigns actually do? Here in Ypsilanti, quite a lot – although more [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

Business InsiderSeedrs CEO hails 'standout year' as total investment on crowdfunding platform passes £300 millionBusiness InsiderSeedrs said crowdfunding investors reaped "strong returns" but didn't specify the amount. The crowdfunding platform, one of the two [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

Want to Hold Your Own ICO? Indiegogo Can Help You With ThatFortuneCrowdfunding sites like Kickstarter (kickstarter, +0.00%) and Indiegogo raised start-up cash for a generation of online entrepreneurs, but one increasingly visible method of internet-sourced financing seemed to have sli [...]

Financial TimesCrowdfunding a mission to save capitalism from itselfFinancial TimesJeff Lynn is on a mission to save capitalism from itself at a time when millions feel locked out, and unable to foresee themselves better off than their parents. His answer: to democratise capital. That [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |