Crowdfunding site Indiegogo is starting to rolling out optional insurance for its backers, a feature of crowdfunding sites that investors have been looking forward to for a long, long time.
The trouble is that not all projects go through: Some fail in the face of copyrights, some drown in details, some get lost in laziness, and some are just outright jokes or scams. Indiegogo is perhaps more known for these problems than chief rival Kickstarter, which tends to have stricter limitations on what projects can be started.
For now, the insurance option has been offered only one one product, the Olive wearable wristband that tracks your stress levels through heart rate, sleep, and so forth. The crowdfunding insurance is a simple deal. You pay $15 extra when choosing the $129 backing option, and you get a refund if the project falls through.
This is good news for Indiegogo and startup tech projects in general. The insurance option has been sorely missed by tech lovers who have been burned before and are leary about investing now. It may also help those crowdfunding sites generate more revenue for themselves and advance to better interfaces for their thousands of projects, which would be welcome. Of course, you would still be without your shiny new tech product if a project fell through, but at least you would receive some recompense.
So what do you think? Will Indiegogo eventually offer crowdfunding insurance for all its projects? Will Kickstarter and others follow suit? Is the extra cash worth it to hedge your bets when you like an item but aren’t sure it will ever see the light of day?
When he isn't enjoying the beautiful Northwest outdoors, you can find Tyler on business and tech sites, writing about the latest news, analyzing trends, and generally making the Internet a more interesting place.