Crowdfunding website Indiegogo has instituted new campaign rules that make backers feel more comfortable. As with other similar platforms, backing crowdfunding projects on Indiegogo is risky and the possibility exists that backers won’t see anything for their money. Though many projects go on to be a success, many others don’t, and some have even come to light as being shady.
To help mitigate these issues, Indiegogo has announced some new rules that campaigners will need to follow. Teams that are launching products under the Tech and Innovation categories are now required to provide Product State statuses for their campaigns, and these statuses should range from concept to shipping.
Each status comes with specified risks, making it easier for potential backers to see exactly what they’re putting their money toward. “Our goal is to give you the context you need to make a more informed decision before backing a campaign,” the company explained in a statement released today.
In addition, Indiegogo is now requiring its campaigners to update their backers at minimum once a month; those updates can include things like behind-the-scenes looks at the work that is going on, photos of warehouses, and more. The idea is to keep backers aware of the status of a product they’ve put money toward, helping alleviate concerns that may grow when a project goes months without any updates.