These days lots of creatives, businesses, causes and even nonprofits are turning toward crowdfunding to raise money over traditional ways of financing or borrowing funds. The two most prominent crowdfunding platforms out there are Kickstarter and Indiegogo.
When it comes to the most successful campaigns ever, Kickstarter takes the prize with Pebble, an E-Paper customizable watch that raised over $10 million, just 10,266% more than the product’s goal! Indiegogo has also had some “feel good” and “goofy” campaigns that helped a bullied bus monitor go on the vacation of a lifetime with over $700,000 to spend. And who could forget the hilarious campaign by The Oatmeal to raise money for the National Wildlife Federation and cancer while sticking it to the FunnyJunk for a bogus lawsuit?
Crowdfunding is not without its issues, though, as these platforms are ripe to scams. Take the ambitious Eyez glasses project, for example, which raised over $340,000. The backers have yet to receive any glasses, rewards or their money back. This is why governments like the U.S. have been slow to approve crowdfunding as a means of selling equity to private investors in order to protect investors from increased risk of fraud.
Have you raised money or backed a project on Kickstarter or Indiegogo? Below, feel free to share some of the best and worst examples you’ve seen.