Published in Nikkei , April 25, 2018
Many startups and fast-growing companies launch campaigns to obtain sufficient capital to develop, manufacture, and sell new products. Often these companies utilize social media and marketing firms that specialize in crowdfunding – a method of securing funds by collecting money from individual backers through online platforms. In 2016, approximately $60 billion was raised in the US through this method, establishing a new type of financial ecosystem.
In North America alone, there are over 190 crowdfunding platforms, supplying different contents and serving specific niches. For example, Seed & Spark supports film productions, PledgeMusic connects musicians
and fans, and YouCaring helps fund nonprofit humanitarian causes.
In November 2017, Indiegogo, one of the two largest crowdfunding platforms in the US, partnered with Ingram Micro, a major company of supply chain services, with 1,500 distribution centers worldwide. Through this partnership, Indiegogo offers distribution fulfillment services at a discounted price to its users that successfully raised their funds. These services include managing backer data, inventory of campaign rewards or products as well as its packaging and shipment. There are many companies that reach their crowdfunding goals, and yet have little experience handling post-campaign procedures. The partnership between these two leading companies attests to the rapid development and globalization of businesses built on rewards-based crowdfunding.