Greentech is on the rise and crowdfunding platform Indiegogo is leading the charge
Achieving the Paris Agreement goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels will require hard work and innovation across many different sectors and types of actors, no. only governments but also businesses and investors.
While there is much attention to government commitments and also recently the wave of corporate netzero commitments, less attention has been paid to the role investors can play in achieving this important goal.
Recently, Silicon Valley Bank released a report on the future of climate technology that highlighted the massive boom that green technologies are currently experiencing in several different industries. Not only governments and businesses, but also venture capitalists and other fundraisers are playing an active role in climate change by financing businesses and creating technologies that work for a more sustainable future. For example, venture capital fundraising for climate technology focused funds in 2021 is on track to hit a record $ 21 billion and capital from venture capital funds to climate technology companies. are on track to hit a record $ 49 billion.
Within this ecosystem, crowdfunding is another sector that contributes to this massive boom in green technologies. For example, the Indiegogo crowdfinding platform has raised more than $ 78 million for sustainable products and sustainable technology as a whole.
As part of my research on purpose-built companies, I spoke to Andy Yang, CEO of Indiegogo, about the role of crowdfunding in general and how it is an important source for green technologies in particular. Below is a slightly edited excerpt from our online exchange.
Christopher Marquis: What is Indiegogo’s mission and how is the platform different from other crowdfunding platforms?
Andy Yang: Indiegogo is a crowdfunding platform that allows entrepreneurs to go to market and raise funds from daily funders looking to get into the most unique and exclusive technology products early. Our mission is to create a global network of communities that connect trustworthy professional entrepreneurs and the enthusiasts who fuel their innovation. As a pioneering crowdfunding platform, Indiegogo is known for launching successful brands and helping fund more than 800,000 ideas since its inception.
The crowdfunding landscape today is really diverse and full of options, which is great for funders and entrepreneurs. There is a wide range of platforms that focus on specific areas of crowdfunding, such as crowdfunding for causes (GoFundMe) or crowdfunding for artists (Patreon). Although Indiegogo hosts a variety of products and projects across all categories on its site, we pride ourselves on being one of the only crowdfunding platforms to offer a solid selection of technology, hardware and innovation products, in particular.
Indiegogo is also the only crowdfunding platform that offers campaign owners exclusive services and support that can help campaigns raise as much money as possible. Beyond platform hosting, our team of experts provide tips and advice on how to maximize the potential of the campaign and, once published, we amplify the best campaigns through marketing and promotions. That’s why entrepreneurs choose Indiegogo – because of its track record of launching successful brands with unmatched level of support, platform features and global reach.
Marquis: Why do you think greentech has developed on Indiegogo in recent years?
Yang: Indiegogo defines green technologies as innovations whereby the incorporation of design and / or functionality truly takes into account the environmental impact of the user, the brand or both.
In the global green technology and sustainability market alone, it is expected to represent a $ 57.8 billion industry by 2030. So it is evident that the category will continue to grow as a consumer population of. more and more tech savvy will become more environmentally conscious of the products they buy and support. .
Crowdfunding is not immune to this broader industry trend. In fact, examining the data on crowdfunding platforms like Indiegogo can help us understand what kinds of innovations are a priority for consumers who see themselves as tech savvy, early adopters, at a micro level. Indiegogo’s backers take pride in discovering and funding the most advanced products and technologies, so it’s no surprise that green technology garnered such massive support last year on this platform. demographic group. Greentech campaign funds raised on Indiegogo have increased 145% from what we saw in 2020 YTD and support increased 900% last year.
In addition, not only has donor support increased, but we have also noticed how this awareness has translated into new campaigns and product creation with green technology campaign launches registering a high. 35% jump compared to 2020.
Marquis: What do you think this trend indicates about what today’s consumers want in their tech products?
Yang: I think the growth of green tech campaigns shows that today’s consumers are aware of the products they use and their impact on the environment, and on a platform like Indiegogo, that doesn’t have to be. do at the expense of the loss of new and hot technologies. Consumers don’t want to feel like they have to give up the luxury and modern technologies to which they have become accustomed, so they are looking for more unique and smart products that can both allow them to be more sustainable while being up to date. cutting edge technology. At least on Indiegogo, contributors believe their products and technology can help create more sustainable lifestyles and consumption while making their lives easier, more efficient, or fashionable.
Marquis: What kind of impact can the crowdfunding industry have on funding important new sectors, such as green technology / sustainability?
Yang: First of all, crowdfunding is an incredibly viable funding route that is often overlooked when entrepreneurs are looking for capital for a new product or idea. Many are also turning to crowdfunding because they believe it is a more inclusive avenue than traditional fundraising or venture capital loans, as it does not exclude underserved entrepreneurs and / or marginalized. Crowdfunding on Indiegogo also provides entrepreneurs with a community of like-minded people who can provide support and feedback on projects and innovations. It is also one of the most efficient ways to put capital directly into the hands of entrepreneurs.
Equally impactful are the products that debut on crowdfunding platforms. To date, the crowdfunding of green technology products on Indiegogo has raised over $ 78 million for sustainable products and sustainable technology as a whole. The more crowdfunding is recognized as a powerful source of capital, the more it can have an impact on game-changing sectors for the environment. It has been extremely rewarding to see our green technology and energy sector grow so much firsthand on Indiegogo.
Marquis: What are some of the popular greentech campaigns on Indiegogo?
Yang: The Lomi (instant compost bin), Briiv (a sustainable air purifier), and the GoSun Chillest (a solar cooler that doesn’t need ice) are some of Indiegogo’s most popular green tech campaigns. on the platform right now. All three have raised a combined total of over $ 8 million through their campaigns on Indiegogo.
Indiegogo not only is constantly adding new sustainable and green technology campaigns to the platform, but is actively stimulating and promoting this emerging popular category. All energy and green technology campaigns are available on our website and you can read more about some of our most popular green technology campaigns here.