Indiegogo and StartEngine Join Forces

Summary

In this video, Salvador Brigman discusses a significant development in the crowdfunding industry: the collaboration between Indiegogo and StartEngine. The partnership aims to streamline the process of raising capital, from initial concept to Series C funding, by integrating rewards-based crowdfunding on Indiegogo with equity crowdfunding on StartEngine. This alliance is set to democratize fundraising, allowing creators and entrepreneurs to tap into their community of supporters for investment, potentially bypassing traditional venture capital routes.

Takeaways

• 😀 Salvador Brigman, the host of the crowdfunding YouTube channel, discusses the importance of crowdfunding for businesses and ideas.
• 📢 StartEngine, a major equity crowdfunding platform, has partnered with Indiegogo, a significant player in rewards-based crowdfunding.
• 🔄 The partnership aims to create a funding ecosystem that supports startups from the idea stage through to Series C funding.
• 💡 Equity crowdfunding allows non-accredited investors to invest in startup companies, potentially raising up to five million dollars under Regulation CF.
• 🚀 Indiegogo is known for rewards-based crowdfunding, where creators can pre-sell products and raise funds for production costs.
• 🔄 A successful Indiegogo campaign can transition to an equity crowdfunding campaign on StartEngine to raise capital and scale the business.
• 💼 The collaboration between Indiegogo and StartEngine is expected to increase deal flow and customer awareness of crowdfunding options.
• 💡 The partnership could provide an alternative to traditional venture capital funding, especially in a tightening VC market.
• 🛠 The integration is expected to simplify the process of raising capital, making it more accessible and understandable for entrepreneurs.
• 📚 Salvador offers resources such as a free course and a book to help creators understand and navigate equity crowdfunding.
• 🔮 The video emphasizes the importance of planning for the future and understanding the evolving landscape of crowdfunding to capitalize on opportunities.

Q & A

What is the main topic of Salvador Brigman's YouTube channel?

Salvador Brigman's YouTube channel focuses on crowdfunding, discussing how it can help businesses, ideas, and creative projects come to life through various means such as physical products, startup funding, or creative endeavors.

What significant news announcement is Salvador discussing in the video?

Salvador is discussing the news that StartEngine, a major equity crowdfunding platform, is joining forces with Indiegogo, a significant player in rewards-based crowdfunding.

What is the potential impact of the partnership between Indiegogo and StartEngine on the crowdfunding industry?

The partnership could lead to increased deal flow, greater customer awareness of crowdfunding options, and provide more flexible ways for businesses to raise capital without necessarily resorting to venture capital.

What does StartEngine specialize in that is different from Indiegogo?

StartEngine specializes in equity crowdfunding, allowing non-accredited investors to invest in startup companies, while Indiegogo focuses on rewards-based crowdfunding, where backers receive a product or service as a reward for their support.

What is the current legal limit for raising capital through a Reg CF campaign?

As of the time the video was recorded, the legal limit for raising capital through a Reg CF (Regulation Crowdfunding) campaign is up to five million dollars in a 12-month period.

What is the process for a startup that wants to transition from a rewards-based campaign on Indiegogo to an equity crowdfunding campaign on StartEngine?

A startup can launch a rewards-based crowdfunding campaign on Indiegogo to introduce a new concept and acquire customers. After proving the concept and building a community, they can migrate to StartEngine to launch an equity crowdfunding campaign to raise capital and scale the business, acquiring new shareholders in the process.

What does Salvador Brigman suggest as a benefit of the Indiegogo and StartEngine partnership for entrepreneurs?

Salvador suggests that the partnership simplifies the process of raising capital, making it more accessible and understandable for entrepreneurs, and potentially allowing them to bypass traditional venture capital routes.

What is the role of the audience or community in this new funding ecosystem?

The audience or community plays a crucial role as they can become investors in the company, owning a piece of the business and serving as brand champions, motivated to see the company succeed.

What is the importance of planning for the future according to Salvador Brigman?

Planning for the future is important because it allows founders and entrepreneurs to anticipate opportunities and challenges, de-risk the present, and capitalize on opportunities to raise capital when it is most advantageous.

How does Salvador Brigman suggest leveraging a successful Indiegogo campaign for further capital raising?

Salvador suggests that after a successful Indiegogo campaign, a company could leverage the audience and momentum to transition to an equity crowdfunding campaign on StartEngine, thus raising additional capital for the business.

What resources does Salvador Brigman offer to help individuals understand and navigate equity crowdfunding?

Salvador offers a free course on how to do an equity crowdfunding campaign, a book titled 'Equity Crowdfunding Explained' available on Audible, and coaching calls for personalized guidance.

Outlines

00:00

🚀 Crowdfunding Industry News: Start Engine & Indiegogo Partnership

Salvador Brigman introduces a significant development in the crowdfunding industry: the partnership between Start Engine, an equity crowdfunding platform, and Indiegogo, a major player in rewards-based crowdfunding. The collaboration aims to create a comprehensive funding ecosystem that supports startups from the idea stage through to Series C funding. The announcement is positioned as a vital piece of news for anyone interested in crowdfunding, with implications for both equity and rewards-based crowdfunding strategies. Salvador emphasizes the importance of understanding these changes to anticipate opportunities and navigate the future landscape of fundraising.

05:01

🤝 The Power of Brand and Community in Crowdfunding

This paragraph delves into the strategic advantages of the Indiegogo-Star Engine partnership, highlighting the streamlined process for startups to transition from rewards-based to equity crowdfunding. The partnership is portrayed as democratizing fundraising by involving consumers and brand evangelists as investors, thus providing an alternative to traditional venture capital funding. The summary also touches on the benefits of building a brand and community, the potential for multiple funding rounds, and the current market conditions that make this partnership particularly timely and beneficial.

10:02

💡 Navigating the Future of Crowdfunding: Opportunities and Challenges

The final paragraph focuses on the implications of the Indiegogo-Star Engine partnership for entrepreneurs and businesses. Salvador discusses the importance of planning for the future and understanding the evolving crowdfunding landscape to capitalize on opportunities and mitigate risks. He also addresses the potential simplification of the crowdfunding process due to the partnership, making it more accessible for those unfamiliar with the intricacies of equity crowdfunding. The paragraph concludes with an invitation for viewers to explore further resources and consider one-on-one coaching to leverage the new众筹 landscape effectively.

Keywords

💡Crowdfunding

Crowdfunding refers to the collective effort of individuals who network and pool their resources, usually online, to support efforts initiated by other people or organizations. In the video, crowdfunding is the central theme, as it discusses how it can help bring ideas to life and raise funds for various projects, from physical products to startup companies.

💡Salvador Brigman

Salvador Brigman is the host of the YouTube channel mentioned in the script, which focuses on crowdfunding. He is passionate about educating others on how to use crowdfunding platforms to their advantage, and his enthusiasm is evident throughout the video as he discusses the latest news in the crowdfunding industry.

💡Start Engine

Start Engine is one of the largest equity crowdfunding platforms mentioned in the script. Equity crowdfunding allows non-accredited investors to invest in startup companies in exchange for equity. The script discusses Start Engine's partnership with Indiegogo, indicating a significant development in the crowdfunding landscape.

💡Indiegogo

Indiegogo is a prominent rewards-based crowdfunding platform that enables creators to raise funds for their projects by offering rewards to backers. In the video, Indiegogo's collaboration with Start Engine is highlighted as a significant move that could impact the way startups raise capital.

💡Equity Crowdfunding

Equity crowdfunding is a method of raising capital through investments from the general public, where investors receive equity in the company in return. The script explains how this method can be used by startups to raise funds, as opposed to traditional venture capital funding.

💡Regulation Crowdfunding (Reg CF)

Regulation Crowdfunding, often abbreviated as Reg CF, is a rule by the U.S. Securities and Exchange Commission that allows companies to raise a certain amount of money from the public through online platforms. The script mentions that under Reg CF, companies can raise up to five million dollars in a 12-month period.

💡Idea Stage

The term 'idea stage' in the script refers to the initial phase of a project or business when it is still a concept. Crowdfunding can be used to validate these ideas and raise the initial capital needed to develop them further, as discussed in the video.

💡Series C

Series C refers to the third round of major venture capital financing, which companies seek after their initial seed and Series A and B funding rounds. In the script, the partnership between Indiegogo and Start Engine is said to create a funding ecosystem that supports startups from the idea stage through Series C.

💡General Solicitation

General solicitation is the practice of publicly promoting investment opportunities to the general public, rather than only to accredited investors. The script mentions that equity crowdfunding platforms like Start Engine use general solicitation under Reg CF to attract a broader range of investors.

💡Community

In the context of the video, community refers to the group of supporters and backers who are interested in a project or business. Building a community is important for crowdfunding success, as it provides a base of people who are invested in the project's success and can help spread the word.

💡Fulfillment

Fulfillment in the script refers to the process of delivering the rewards to the backers of a crowdfunding campaign. It is an important aspect of crowdfunding, as backers expect to receive the products or services they were promised. The script mentions 'Fulfill Right' as a solution that automates the product delivery process.

💡Venture Capital (VC)

Venture capital is a type of financing provided by firms or individuals to startups in exchange for equity in the company. The script discusses how some businesses may not need to take venture capital if they can successfully raise funds through crowdfunding platforms like Indiegogo and Start Engine.

Highlights

Start Engine, a major equity crowdfunding platform, is joining forces with Indiegogo, a giant in rewards-based crowdfunding.

The partnership aims to create a funding ecosystem from idea stage through Series C funding.

Indiegogo is known for rewards-based crowdfunding, while Start Engine specializes in equity crowdfunding.

Equity crowdfunding allows non-accredited investors to invest in startups, potentially raising up to five million dollars under Reg CF.

A successful Indiegogo campaign can transition to an equity crowdfunding campaign on Start Engine to raise more capital.

The collaboration is expected to increase deal flow and customer awareness of capital-raising opportunities.

The partnership could provide an alternative to traditional venture capital funding during times of market contraction.

The process of raising capital is being simplified and made more transparent for entrepreneurs.

Consumers and brand evangelists can now invest in companies they believe in, democratizing the fundraising process.

Indiegogo and Start Engine's partnership is seen as a strategic move to support startups through various funding stages.

The collaboration is expected to benefit startups by providing a seamless transition from rewards-based to equity crowdfunding.

Indiegogo's CEO, Danae Ringelmann, emphasizes the importance of the partnership in supporting startups' growth.

The partnership aims to help startups attract shareholders and raise capital without relying solely on venture capital.

The new ecosystem could allow businesses to raise significant funds through crowdfunding, reducing the need for venture capital.

The partnership is positioned as a game-changer in the crowdfunding industry, offering more options for startups.

The collaboration is expected to provide a comprehensive funding solution from the early stages of a business to maturity.

The announcement highlights the potential for significant capital raises through a combination of Indiegogo and Start Engine campaigns.

The partnership is seen as a way to involve the community in a startup's growth, offering them a chance to invest and own a part of the company.

Transcripts

what up what up welcome back to the

crowdfunding the demons dividing YouTube

channel my name is Salvador Brigman and

on this channel we love to talk about

crowdfunding we get into how

crowdfunding can help you your business

your idea bringing that idea that you

have in your head into the real world

whether that's with a physical product

whether that's raising money for a

startup company whether that's doing

something like a creative a tabletop

game coming out the next greatest novel

whatever it is we talk about that on

this YouTube channel and in today I

actually want to discuss a news

announcement where I think is incredibly

vital and important for anyone out there

that's interested in incorporating

crowdfunding into their life this year

but that's the fact that start engine

one of the biggest Equity crowdfunding

platforms out there is now joining

forces with Indiegogo another Mega giant

another really big platform when it

comes to rewards-based craft and things

we're gonna be talking about the

implications for you what you should be

aware of some of the digestible

information when it comes to this news

and really break it down what this means

for the crowdfunding industry as a whole

and for anyone out there that wants to

raise funds and we're getting into it in

just a second

[Music]

foreign

[Music]

if you've been coming to this YouTube

channel for a while watching some of my

other wacky videos we had so many

comments recently from you guys I've

been loving it these things like Sal you

gotta slow down you're talking too fast

right I know man I'm really passionate

guy and I really hope that you also

enjoyed today's video but if you haven't

enjoyed my other videos give me a thumbs

up just to let me know that way other

people can also discover this Channel

and if you haven't yet obviously take a

second to subscribe so let's get into

today's news so first of all this is a

mega a huge a Whopper of an announcement

for anyone out there that really cares

about the crowdfunding industry anyone

out there who wants to raise funds using

Equity crowdfunding or using

rewards-based crowdfunding and really

anyone who wants to have an

understanding of what's happening in the

future the more that you can actually

peer into the future whether that's as a

Creator as an entrepreneur as a business

owner whatever it is the more you

compear into the future and be able to

see what's happening you can actually

anticipate that you can take advantage

of opportunities you can actually

measure or see different problems that

might crop up and different options

which you can plow pass right which we

talk about obviously with my coaching

calls and that stuff like that the more

you can actually view the future the

more that you can capitalize on that

before anyone else knows about it so

that's really the goal of this video to

digest what does this mean for you and

really what is this going to have the

effect when it comes to your project so

let's bring up this news announcement

and I'll get this on the screen as well

so Indiegogo and star engine team up to

help raise capital from ideation to

series C so this announcement basically

is just saying that Indiegogo is now

teaming up with star engine so Indiegogo

being one of the biggest platforms out

there when it comes to rewards-based

crafting start engine being one of the

biggest when it comes to equity

crowdfunding these two are now teaming

up we have a great quote there from

Howard Mark so I believe I've also

interviewed once or twice on my podcast

as well great wooden star engine was

really beginning to become a thing uh he

has a great quote here saying that at a

pivotal moment for Founders when many VC

firms have slowed their pace of

Investments we've joined forces with a

fellow leader in the crowdfunding space

to ensure startups consistently raise

the capital they need what we have

created is a funding ecosystem from idea

stage through series three series C

sorry so you might have already heard

about crowdfunding and equity

crowdfunding and also start engine when

it comes to my videos that I put out

there on YouTube I have a great tutorial

on start engine you also maybe have

heard of their competitor as well we

funder you've probably all heard like

Indiegogo and Kickstarter just watching

and being a viewer of this channel so

first of all equity crowdfunding for

those of you that are not familiar

Indiegogo is all about rewards-based

crowdfiting which is where you can

basically pre-sell a product so you can

have a product in an idea stage you

could have a product when it comes to

actually having a prototype you could be

in production and really shipping this

thing out there are different stages

which you can launch on on Indigo you

watch my other videos If you really are

curious about that right you really want

to get into the Nitty Gritty but really

is for people out there that already

have a product and they're looking to

sell this online in some way they're

raising funds for that typically for the

minimum order quantity to be able to

produce this or maybe to help with the

tooling costs right and they're getting

this sucker out there so tons of people

around the world can own this product

the way that Equity crowdfunding kind of

plugs in here it allows other people who

have never met before non-accredited

investors actually invest in that

startup company which you have now found

it so hear me out basically you can

broadcast this thing using general

solicitation of the reg CF or regulation

crowdfunding Securities exemption you

can broadcast this to tons of people

around the world at the time recording

this video you can record you can

actually raise upwards of five million

under reg cf4 reg CF style campaign so

for example you could start this project

on Indiegogo let's say it gets tons of

funding tons of legs you're following

exactly what Sal says right when it

comes to the things I put out there with

my books my podcasts my coaching Etc you

follow everything right to a t you

absolutely smash through your goal with

Indiegogo and then you're like you know

what I actually also want to raise money

for my company so you could then do an

equity crowdfunding campaign and I've

been covering this I've been documents

no one else was doing this I have been

documenting this for you guys more and

more people who are having successful

crowdfunding campaigns on Kickstarter

indigo and then doing a Wii Thunder or a

start engine campaign doing a regulation

crowdfunding race and then doing

multiple raises I've had guys on my show

who've done million dollar raises using

Equity crowdfunding year after year

after year this thing is so available to

you it's almost like you're going back

to this honey pot right and you can

really if you want to open up this war

chest whenever you want to and be able

to go back to the sucker like you have a

fundraising well that you keep going

back to and whenever you want to you can

get some more funding so this is really

the power of building a brand the power

of building a community nowadays and

like I said I've been trying to cover

this more and more on my podcast so you

guys know about this no one else is

doing this that no one else even knows

about this but you can actually now go

from Indiegogo to Star edges to go

through more of this press release so

Indiegogo and star engine um their

startup ecosystem flow the way it works

is you can launch a rewards-based

crowdfunding campaign just like I said

on the Indie Google platform to

introduce or to solidify A New Concept

and acquire customers you can then raise

funds for proof of console and minimum

Ohio product or prototype and build an

enthusiastic community get backers then

you can migrate that Community as a

company transitions to start engine to

launch a regulation crowdfunding

campaign and then you can raise capital

and scale the business while

simultaneously acquiring new

shareholders who serve as champions of

the brand motivated to see it succeed

that sounds so compelling so exciting

and you know what I love about this is

that you really democratizing the entire

fundraising process and you're actually

involving those people that you

typically are just kind of passed over

which are the consumers which are the

people that are actually evangelists for

your brand you're giving them a way to

invest in the company and own a piece of

the pie before you actually bring in

those big name big check VCS where they

really try to take it from there want to

take all the stress out of fulfilling

your Kickstarter rewards fulfill right

is the turnkey solution that puts

product delivery on autopilot the top

campaigns uses trusted high-tech

provider to store package and ship their

products focus on growing your business

leave shipping to The Experts don't wait

get a custom quote from fulfill right

today a link in the description so Becky

Center is who is the CEO of Indiegogo

had this to say according to the fresh

relief Becky Center believes that

joining forces with start engine will

prove immensely beneficial for a

company's crowdfunding on the Indigo

platform calling the collaboration a

perfect segue she shares as well as

quote a startup can begin raising

Capital with us to fortify concept

acquire customers and scale and then

when the time comes we can pass the

Baton to start engine to help them

attract shareholders and raise the rest

of the way another great quote in this

article came from Mark who is a

co-founder of Activision and he had this

to say quote as we are seeing in our

current economy you never know what's

coming around the corner you protect

your company by continually raising

funds and maintaining sufficient Capital

so while many Founders assume Venture

Capital funding is a necessity Mark

thinks otherwise especially now the two

crowdfunding platforms have teamed up

saying quote the truth is that some

businesses may never have to take

Venture Capital case in point funds

rates to Indigo campaigned with combined

with equity crowdfunding on start engine

which can read some as high as 75

million in one round are often

sufficient for companies to reinvest and

grow so the 75 million I believe they're

also talking about regulation a plus

um but when it comes to Reg CF right now

the limits are 5 million dollars in a 12

month period you never know when that

might change or they might you know even

be raised at a certain point in time so

I do think that these regulations and

these Securities exemptions are actually

evolving someone quickly actually if we

think of it in a historical context so

I'm really excited first of all to see

what happens but let's talk about some

of the implications here for you and

really what does this mean so if

anything I would say that Indiegogo has

done a lot more in the way a partnership

than their competitor Kickstarter right

so Kickstarter in my opinion if you want

to think about the ethos of the company

and actually even the company values and

the public benefit Corporation status

Kickstarter is much more similar to

refunder Indiegogo is actually much more

similar in my opinion to start engine

and the way that the companies are run

and structured at least according to my

own analysis and research so that being

said Indiegogo is now partnering with

start engine so what does that really

mean basically what that means is kind

of like a referral program almost is

where they're going to be recommending

in my opinion start engine at a certain

point in time or maybe even making

introductions so you can actually raise

Capital after you do an Indiegogo

campaign or if you go from Kickstarter

to then doing Indiegogo in demand maybe

at some point in time they're going to

recommend start engine which is the

equity crowdfunding platform that they

choose to partner with in order to help

you when it comes to your Capital

raising needs first of all this is an

incredibly important thing because

number one this is going to lead to way

more deal flow the biggest issue and

this is why I'm like screaming this from

the rooftops guys this is why I am so

loud and passionate and sometimes

gregarious and fast talking is because

I'm trying to get the word out there

about reg CF because no one knows about

this thing no one knows about Equity

cropping no one knows about regulation

gravity I go to events all the time and

people are like wait what is that is

that legal can you really do that of

course it's legal right the fact that

people don't know this is the biggest

hamper for why it's not actually

catching on and it is cashing on in

massive quantities you can go see some

of the stats that they put out there but

still I think this is going to increase

deal flow and also customer awareness of

the fact that they can raise capital

from the crowd if you want to you could

launch a reg CF style campaign you could

raise six figures from your investor

base from your fans from people that

have been following your career your

lifelong follower of your career you can

very easily raise money nowadays and

they don't necessarily have to be

accredited investors you're like a reg D

or something like that you can do a reg

CF you can open this up open up the

floodgates for investing and people who

are even non-accredited investors can

invest in your company so the first one

obviously is deal flow and awareness

within the crafting industry which I

think helps it's like a rising tide that

lifts All Ships the second thing is the

lack of access to Capital when it comes

to VC so unfortunately this kind of also

goes a little bit in line with the

general markets right so when VCS are

kind of Contracting with the amount that

they're willing to take in terms of risk

and investigates that doesn't

necessarily mean that your customers

don't still believe in you so if your

customers are like believing in your

products they love what you're doing

they also connect with your mission why

not tap into that base of investors

versus going into a VC who doesn't know

the first thing about your industry it

might have a little bit of knowledge but

doesn't believe in you in the same way

that a customer does or an employee does

right so this could be a really

interesting way in my opinion to kind of

circumvent and kind of cut out that

middleman and in addition at a time when

it's more difficult to sometimes get VC

funding I think this can be only

beneficial which is you're just

expanding and giving people more

flexible ways in which they can raise

capital for their company without maybe

even going to a VC at all as that

individual said in this press release

the third thing and honestly I've been

having so many coaching calls with

different students who are looking to do

a we funder campaign looking to do a

start engine campaign looking to do some

kind of a reg CF style campaign and

they're like you know what I really want

to do this but I just don't really know

where to get started all the information

is so complicated so dense out there I

think that the other reason why a

partnership like this is great aside

from legitimizing the actual way of

raising funds but I also think that's

great because I do think it's going to

simplify the process so it's no longer

going to be something like oh I gotta

file no all these legal documents and

all these Lions things I gotta figure

out this I gotta figure that instead

it's gonna make it much more simple much

more easily understood hopefully much

more transparent in the information

that's out there which is one of my

goals right as a Creator so I do have a

free course out there walking you

through step by step how to do an equity

crowdfunding Campaign which I will link

up down below in addition in the book

Equity crowdfunding explained which is

available on Audible which you can also

check out down below go check out some

of my other videos if you're interested

in learning more about star engine about

we funder about Indiegogo and finally if

you wanted to talk about how this could

work for you maybe you already have a

successful Indiegogo campaign maybe

you're looking to do an Indiegogo and

then do a refunder or a star engine

campaign if you've already done a

Kickstarter campaign you're like how

could I actually leverage this audience

in order to raise capital for my company

you heard it best that quote in this

article is exactly what I said at the

start of this video which is you always

got to be planning for the future you

always have to be thinking about the

future as a Founder as an entrepreneur

as a business person because the more

you can plot out and really understand

the future the more you can de-risk the

present the more you can take advantage

of opportunities the more you can raise

Capital when you it's easy to versus

maybe later when it's more difficult to

so if you don't want to talk about that

as well you can always book a one-on-one

coaching call with me down below but I

hope that you enjoyed this news

announcement I will include some links

down below so you can also look more

into this but thank you so much for

watching this video If you enjoyed it

come subscribe leave a comment down

below and I will see you next time