Conditions for raising millions of dollars like Le Diep Kieu Trang on Indiegogo

Besides venture capital funds, crowdfunding is also a way for startups to seek financial resources. Crowdfunding is a form of calling for help from the community to help the owner of a project or the person who comes up with an idea to complete when there is no money to do it.

To encourage donations, project owners give backers souvenirs or discounts when buying products. The donation can actually be considered a deposit for the product before it is released. Because pre-purchase and the risk of not receiving the product exist, the deposit is usually 30% - 50% lower than the market price.

Nowadays, crowdfunding is quite popular in the world.

Indiegogo is one of the crowdfunding platforms for startups and creators. Founded in 2008, this platform supports projects to reach investors and raise capital through the help of individuals and the community.

Indiegogo is the largest crowdfunding site because it is not limited to any field, allowing fundraising for any project, idea with many different purposes.

Indiegogo has 15 million monthly active users from 224 countries and territories, helping to fund more than 800,000 ideas worldwide. It has a 47% success rate. The platform charges a fee for projects that successfully raise funds.

On Indiegogo, to successfully raise funds, the idea often has to be groundbreaking and different. Misfit is an example of a successful crowdfunding campaign when it launched Shine - a smart wearable device to monitor and measure health indicators. After 10 hours of posting on Indiegogo, the project reached $100,000. At the end of the time, Misfit Shine attracted capital up to $846,000.

In Vietnam, most crowdfunding campaigns are related to technology, environmentally friendly recycled products, or book publishing.

In fact, this Indiegogo applies to all areas of life, as long as the idea is feasible and attractive enough to the community.

The two forms of capital raising applied are flexible and fixed. With the flexible form, the project owner can still contribute capital if the initial expected number is not reached. With the fixed form, the project owner only receives money when the given target is reached.

Backers will have to pay Indiegogo a fee, typically 5% of the total amount raised, plus other fees.

The advantage of crowdfunding is that it doesn’t require founders to sell shares of their company. Most crowdfunding campaigns actually take the form of pre-sales of products.

According to experts in the startup field, this method is effective for projects with a tangible product, in the near-end stage of the R&D (research and development) project, requiring a certain amount of capital for mass production without having to call for capital from investors and other funds.

The crowdfunding campaign for Mr. Sonny Vu's electric scooter started around May 2021. According to the plan, the scooter was expected to be delivered to investors from December 2021. However, not many people have received the product yet.

Before it was discontinued, the Scotsman scooter campaign had raised a total of nearly $565,000 from more than 300 users who backed the project.

Le Diep Kieu Trang: Making waves with a million-dollar startup, causing a fever on Vietnamese Facebook . Le Diep Kieu Trang, her husband Sonny Vu and her brother Le Tri Thong are famous among young entrepreneurs. Social media has been in turmoil since the businesswoman became CEO of Vietnamese Facebook and recently her husband's startup.

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