Indiegogo requires campaigns to disclose product status and risk
They're also forced to update backers monthly.
Crowdfunding has brought a lot of great projects to life, but fundraising on the frontier brings risk -- like unexpected issues delaying product deliveries for years or cancelling campaigns outright. Indiegogo wants to shore up trust in its platform, so it's requiring entrepreneurs to disclose more information up-front and update backers monthly.
Every campaign in the Tech and Innovation categories must disclose how far along it is, from concept planning to shipping finished goods, and clarify the risks at each stage. Entrepreneurs are now required to post updates for backers at least once a month, which isn't just a responsible thing to do -- checking in that frequently raises campaigns 286% more money than those that update irregularly, Indiegogo stated. While this won't seriously improve the odds that any product you back will make it into your hands, at least you'll be armed with more information to better choose which campaigns to back.
