In an effort to stop crowdfunding campaign failures and scams, Indiegogo’s Trust and Safety Team announced on Thursday several updates designed to reassure users that their money is going towards projects with potential future success. The funding portal’s team stated:
“Indiegogo would not be where it is today without our incredible community of backers. You come together on our platform to make the ideas that matter to you come to life. You’re changing the world a little at a time, and we want to make sure that you feel confident that those amazing projects that you’re excited to back will come to life. Back in December, we shared what our Trust and Safety team does to make sure Indiegogo is a place you can trust. But our work didn’t start or stop there. Because of what we’ve heard from you, we’ve made some changes in the ongoing effort to make sure our backer community always feels supported.”
The first change was disclosure of product stage. The team states that when projects launch, they can be anywhere in the product lifecycle. With that said, Indiegogo now requires tech and innovation entrepreneurs to select which Product Stage they are in, from Concept to Shipping.
“We’ve also clarified exactly what each stage means and the risks associated, especially for concept-stage campaigns. We value quality, honesty and accountability, so we are committed to verifying that entrepreneurs really are where they say they are in product development, and make changes if necessary.”
The next change is Monthly Backer Updates.
When backers pledge funds towards a project, they are signed up to see what goes on behind-the-scenes. Indiegogo now requires entrepreneurs to update their backers at least once a month about the status of the project. This can include photos of warehouses, videos of the team at work, etc.
The third and final change is experts may now help backers get their perks. The crowdfunding platform stated:
“Thanks to a group of amazing partners including IBM and Arrow Electronics, we’re making it easier for entrepreneurs to navigate the complicated process of creating, manufacturing, and shipping a product. We also want to make it easier for you to see the ideas that inspire you make it into the world.”
Indiegogo’s team then added: