When should I choose to crowdfund or equity crowdfund my startup?

Slava Rubin / November, 2017

Description

Slava Rubin, Co-Founder of Indiegogo explains how to choose between crowdfunding or equity crowdfunding.

Video Transcript

When should I choose to crowdfund or equity crowdfund my startup?

As an entrepreneur, you’ll eventually need to decide if you want to do perk-based crowdfunding or if you want to do equity-based crowdfunding. Either will be an option on Indiegogo in the future. Right now, perk space crowdfunding is the only thing that’s available because it’s not until May that this will be allowed to happen. If you have an interesting product, like a drone, I would suggest a perk-based crowdfunding project on Indiegogo will be really smart, because then you could do market validation and ensure that you get promotion, extra customers, all that good stuff. If you have a drone you could also do an equity based on Indiegogo as well, but sometimes equity-based is better for people who care about profit only. So it might be interesting if you have a product. If you don’t have a product, you might have to go equity-based because you won’t have the other option.

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