Rewards Based Crowdfunding

Domenick Celentano ● http://www.domenickcelentano.com/ ● dom@domenickcelentano.com

• Provides Market Validation• Crowdsourcing your product development • Platforms like Equitynet have apps to help you

value your company • Provides focus on Minimum Viable Product• Democratizes the funding process

Crowdfunding vs. Traditional Funding?

Crowd Incentives

IdentificationEmotion

Rewards(relevant and synergistic)

Crowd Contributions

FundingAttention Created by

Influencers

Buy-in Components(you can execute)

Crowdfunding – Rewards Based

CrowdfundingDon’t Start By Raising Money

How You Make Money… Consists of these 9 Areas

customer segments

key partners

cost structure

revenue streams

channels

customer relationshipskey

activities

key resources

value proposition

Business Model Canvas Courtesy of Steve Blank and Alexander Osterwald PhD

Start by Developing a Solid Business Model

Once you do this, you are ready to start Crowdfunding

Building a Crowdfunding Campaign

Building a Crowdfunding Campaign

•Planning

• Campaign starts months prior to launch

• Crowdfunding starts with you, your family and friends

• Must develop a social media strategy

• There is no single solution

•Planning

•It Social

• Develop Email List• Social Media• Blogger & Publication

Outreach• Schedule Press Release

Building a Crowdfunding Campaign

•Planning

•It Social

•Campaign elements

•Pre-Campaign

•Campaign

•Post-Campaign

Building a Crowdfunding Campaign

•Pre-Campaign

•It’s Social

•Awareness

• Project Management• Production & Content• Social Currency & Outreach

Building a Crowdfunding Campaign

•Pre-Campaign

•It’s Social

•Awareness

• Social Sharing • Marketing Events

Building a Crowdfunding Campaign

•Pre-Campaign

•Campaign

•Post-Campaign

• Wrap-up & Assessment• Program Implementation• Fulfillment &

Communications• Harvest Opportunity

Building a Crowdfunding Campaign

CrowdfundingMarket Validation

PreliminaryInvestigation

DetailedInvestigation Development Testing

ValidationFull

ProductionMarket Launch

1 2 3 4 5 6 7

Launch Plan Development

Adv/PR/Comm. Selection & Planning

Campaign & Promotion Planning

Distribution PlanChannel Mgmt Plan

Adv/PR/Comm.Promo

Execution

Market EvaluationTracking Research

Critical EvaluationPeriod

IdeationPost Implementation

Review

NEW PRODUCT DEVELOPMENT

NEW PRODUCT LAUNCHRobert Cooper New Product Development Stage Gate Model

Schneider Associates New Product Launch Stage Gate Model

Product DevelopmentProduct Launch

PreliminaryInvestigation

DetailedInvestigation Development Testing

ValidationFull

ProductionMarket Launch

Ideation

The Pitch

Project Name

Project URL

Elevator Pitch

Phase 2 – Development & Testing

Incentives (Rewards)

Funding - 30 Days - $35,000

Milestones

Updates

Product Development - Product Market Fit Validation

1 2 3 4 5 6 7

Launch Plan Development

Adv/PR/Comm. Selection & Planning

Campaign & Promotion Planning

Distribution &Channel Mgmt

Adv/PR/Comm.Promo

Execution

Market EvaluationTracking Research

Critical EvaluationPeriod

Schneider Associates New Product Launch Stage Gate Model

Phase 3 – Launch Support Costs

Incentives -

Funding – 30 Days - $45,000

Milestones

Updates

Product Launch - Market Validation

CrowdfundingRewards Based – A Pathway to Equity

• Think of it as your Capital Ladder• Start with Rewards campaign to building economic and

brand value in the venture without sacrificing ownership interests

• Gives you early market validation using your Minimum Viable Product (MVP)

A Pathway to Equity

Jason Kulik, Elizabeth Kulik, CoFounders Prohatch

“There have already been

companies on other CFPs that have closed traditional rounds following a successful reward

campaign.

We believe donation & reward crowdfunding models will play

just as important a role in strategic capital formation“

Ouya, a new open sourced gaming console Funded a $8.6M rewards campaign

Garnered 60K preordered units

9 months later

Kleiner Perkins led an additional $15M round

Largest institutional investments in reward-based crowdfunding campaign to date

A Pathway to Equity

ProHatch, www.ProHatch.com, is a responsible Crowdfunding incubator where Projects Hatch & Grow. We connect people around their overlapping business, philanthropy and personal interests as they create, support and fund responsible social impact, business and community development.

Many Thanks!

Thank You

Domenick Celentano ● http://www.domenickcelentano.com/ ● dom@domenickcelentano.com