News today leaked in Businessweek, has revealed a proposed merger between the two largest heavyweights in the crowdfunding industry, Indiegogo and Kickstarter. The new entity, tentatively named “Indiestarter” and was to launch next October in time for the Christmas season.
When pressed for details, both Indiegogo and Kickstarter were both tight lipped about the details. Yancy Strickler replied saying only “Kickstarter's mission has always been to help bring creative projects to life, and this deal would help us do that on a scale never before seen in the industry.” Similarly Indiegogo ceo Slava Rubin stated “Here at Indiegogo, we seek to democratize funding and help anyone who has an idea and wants to raise funds to finance their goal. We see this as fundamentally compatible with the goals of Kickstarter, with their audience being an excellent match for our 2015 goals.”
We see this as fundamentally compatible with the goals of Kickstarter
Only Crowdfunder.com Senior Vice President, Rafe Furst has publically spoken about the deal at length saying that “We are concerned about the monopoly position that this merger represents, and the reduction in competition and diversity that it represents. Our position on this is in no way influenced by the recently failed talks to merge all three of our companies into our proposed 'IndieCrowdStarter' venture.”
We are concerned about the monopoly position that this merger represents
These sentiments were echoed by other industry players, such as representatives from RocketHub who said “This is completely unnaceptable. IndieCrowdRocketStarter would have been a much better name.” In response to this, Crowdrise simply replied “If talks hadn't broken down when they did IndieCrowdRocketRiseStarter could have been a huge step forward for the industry. As it stands though, we'll have to file this as funding unsuccessful.”
When questioned by Aeon Magazine about the merger and his opinion of it, co-founder of Kickstarter Perry Chen, tweeted simply “is really good”.
Date: April 1
Category: Not likely