Undoubtedly, Slava Rubin is one of the world’s leading authorities on crowdfunding. A decade ago, during the infamous financial crisis, Slava established Indiegogo, a company whose objective was to revolutionize how emerging enterprises raise capital. At the time, startups relied heavily on contributions from friends and relatives, private equities, and venture capital firms. Consequently, raising sufficient funds to finance an upcoming project was a daunting task.
Last year, Indiegogo made a remarkable step by adding ICOs and blockchain investments to their service portfolio. The addition was timely, given that ICOs contributed a whopping $5 billion in 2017. Nevertheless, Indiegogo firmly believes in decentralization; hence the members retain all power over the crowdfunding initiatives.
I got to it down with my friend rob. https://t.co/cKlMs7erfc
— Slava Rubin (@gogoSlava) March 28, 2018
Ultimately, Indiegogo intends to increase the acceptance of crowdsales as a method of funding startups. In this regard, the platform develops many unique and innovative strategies. For instance, Indiegogo assists projects with compliances by registering them as securities (where applicable). However, Indiegogo permits a maximum investment of $10,000 per individual, with projects having an upper hard cap of $1 million.
In a recent interview, Slave Rubin shared his views on ICOs
Transitioning from Crowdfunding to ICOs
According to Rubin, the addition of ICOs is a natural transformation of Indiegogo as it seeks to realize its goals. Initially, the platform deployed a perks-based model for raising capital. In 2016, equity crowdfunding, marking the actualization of a significant milestone. By then, the popularity of blockchain and cryptocurrencies was soaring, especially Bitcoin. As a result, Indiegogo decided to explore this option due to mass adoption of the distributed ledger technology concept.
Difference between Equity Crowdfunding and Investing in ICOs
Rubin believes that equity crowdfunding is similar to investing in tokens. This is because both involve staking a considerable amount and speculating that it will return a certain amount as profit. On the other hand, Slave states that perk-based models are dissimilar to the techniques mentioned above. As opposed to the others, perk-based models primarily involve goodwill, rather than prospective financial gains.
The Plummeting Popularity of ICOs in 2018
Slava links the decreasing prevalence of ICOs this year to the implementation of stringent regulations by FINRA and SEC. Mostly, most projects have been compelled to run private sale since several laws bind public sales.
The Indiegogo ICO Vetting Process
Currently, a significant majority of Indiegogo clients are on the perk-based crowdfunding model, since it has less demanding requirements as compared to other models. Contrariwise, the equity crowdfunding model is substantially more stringent. The strictness is deployed to combat potential fraud and other criminal practices. Hence, the acceptance ratio for projects to this model is a paltry 2%.
Despite the rigorous vetting process, most current projects mage to realize their fundraising targets. Therefore, Indiegogo is a useful platform for raising capital for promising startups.
The Disruptive Power of Blockchain Technology
As per Slava Rubin, distributed ledger technology is usable in several facets of human life, mainly where transactions require integrity. Thus, blockchain technology is applicable in logistics, supply chain, fintech, and other sectors.
How to Contribute Ideas to Indiegogo
Indiegogo is an archetypal marketplace that has two major components, the merchant, and consumers. Fundamentally, it is a platform that assists startups to raise funds to realize their goals while remaining compliant with the set regulations. Also, it educates interested parties on how to delve into the crypto space and blockchain technology. Additionally, Indiegogo boasts of over a decade of working experience, as well as a remarkable track record.