You might have heard from some experts that crowdfunding isn't really about the money. Instead, these sites serve more as platforms to test the popularity of an idea or to extend your company's marketing efforts.
But according to Slava Rubin, CEO of crowdfunding site Indiegogo, crowdfunding is, in fact, still very much about the money.
Take it from Rubin who says he has witnessed dozens of founders build their companies on their own terms because they had secured capital through crowdfunding.
For example, Canary, creator of a home security system, never intended to give crowdfunding a try, Rubin says. The company initially attracted some interest from venture capitalists, but none of them were willing to give Canary a deal that the founders considered fair.
So they rejected the VCs' term sheets and set out to find alternative funding.
"They went on Indiegogo to raise a couple of hundred thousand, and they ended up raising nearly $2 million," Rubin says. Soon after, the VCs were back in touch. They wanted in, and this time they were willing to give Canary the deal it originally asked for.
"But at this point, everything had changed," Rubin says. So the company declined to take any new venture capital deals for the time being, and proceeded to build the company with the funding it had raised from fans.
To hear more of Rubin's take on the benefits of crowdfunding, check out the video below.