The advent of crowdfunding has given entrepreneurs who have an idea the opportunity to raise capital from strangers who share their passion.
In 2015, Indiegogo visitors raised $800 million for projects including hardware, technology, media and social impact. Co-founder Danae Ringelmann, 38, says this is where the "Gogofactor" comes in - an algorithm that helps to promote causes that are proving popular and direct them to those who are most likely to be interested.
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"The more it resonates, the higher the chance it will pop up on the homepage or in your search filter," Ringelmann explains. "Merit is based not on if you're able to prove to a gatekeeper that you have a good idea, but if your audience proves it's something they really want."
Ringelmann cites the recent success of Axent Wear Cat Headphones as an example. Designed by two UC Berkeley students, the unconventional cans includes two cat-ear-shaped speakers on the top band that allow the wearer to either enjoy music privately through the earphones or share it with friends at the tap of a button.
"It was a quirky idea and we actually asked a couple of venture capitalists we know, 'Would you invest in this?' and all of them said no," she says.
The idea from two first-time entrepreneurs deemed "too niche" by traditional gatekeepers went on to raise more than $3 million in funding through Indiegogo, demonstrating that today's cultural ecosystem has moved beyond conventional arbiters to a world where a quirky idea can be brought to market by a combination of human taste and algorithmic capability.
This article was originally published by WIRED UK
