Indiegogo Becomes Major Contributor in Greentech Boom
- Kyle Chua
- Aug 10, 2021
- 2 min read
As the world continues to grapple with the effects of climate change, the tech sector sees an opportunity in creating and funding solutions that promote a sustainable future.
Credit: Indiegogo
According to the recently published Future of Climate Technology report, venture capital (VC) fundraising for climate tech-focused funds this year is on track to hit US$21 billion. At the same time, capital flowing from VC funds to climate tech companies is on the course to reach an estimated US$49 billion, proving that there are organisations aside from the government that are taking an active role in limiting global warming.
A major contributor to this so-called green tech boom is crowdfunding platform Indiegogo, as Christopher Marquis of Forbes points out. The platform has reportedly raised more than US$78 million for sustainable tech as a whole.
"Indiegogo defines green tech as innovations by which either incorporation of design and/or functionality genuinely considers the environmental impact of the user, brand, or both," Indiegogo CEO Andy Yang told Forbes' Marquis.
"In the global greentech and sustainability market alone, it's predicted to be a $57.8 billion industry by 2030. So it's evident that the category will continue to grow as an increasingly tech-savvy population of consumers become more eco-conscious of the products they buy and support," he added.
Credit: Indiegogo
Yang claims that greentech campaign funds raised on the platform grew 145% from 2020 and support grew by 900% in the last year. He attributes this growth to the platform's backers who are always on top of cutting-edge trends and innovations.
The growth also brought awareness towards greentech, with new campaigns and product creation posting a 35% increase from 2020.
"I think the growth of greentech campaigns shows that today's consumers are conscious about the products that they're using and how it impacts the environment, and on a platform like Indiegogo, this doesn't have to come at the expense of forfeiting new and hot technologies," said Yang.
Yang emphasises that crowdfunding is a viable route for entrepreneurs looking to finance a product idea.
"Many also gravitate towards crowdfunding because they believe it's a more inclusive avenue than traditional venture capital fundraising or loans because it doesn’t fence out underserved and/or marginalized entrepreneurs."
Credit: GoSun
Among the most notable green tech campaigns on the platform are The Lomi, an instant waste compost bin, the briiv, an air purifier that uses natural materials, and the GoSun Chillest, a cooler that runs completely on solar power (no ice needed). All three products have raised a combined total of over US$8 million from their campaigns.
"Indiegogo is not only constantly adding new sustainable and greentech campaigns to the platform, but actively boosts and promotes this emerging popular category," said Yang.
Written by Kyle Chua