Crowdfunding  101  

Kartika  Tulusan    Technology.  User  innovation.  Crowdfunding  

Kartika  Tulusan    Technology.  User  innovation.  Crowdfunding  

Your  crowdfunding  campaign  

Crowdfunding  in  Action  

Digital  tools  in  Action  

Crowdfunding  101  

Digital  tools  101  

Where  are  we?  

Part  1    •  What  is  crowdfunding?      •  Components  of  crowdfunding  

•  Types  of  platforms  

•  Why  crowdfunding  is  relevant  for  you  and  your  charity?      

•  History  of  crowdfunding  •  Banks  vc  VC  •  Local  Economies    

Crowdfunding  101  -­‐    What  will  you  learn?  

Part  2    •  Casestudies    •  Crowdfunding  types  

•  Crowdfunding,  rewards-­‐based  •  Crowdloans  •  Crowdequity  

•  Crowdfunding  campaigns  in  detail  •  Planning  your  campaign    

Exercise:  Take  a  look  at  Kickstarter,  Indiegogo,  Trillionfund  and  Crowdcube  and  look  for  the  following  components.    

1.  Problem,  Solution,  Plan    2.  Product,  Service?  3.  Rewards,  Warm  glow,  Stuff  or  Equity?  4.  Fee  

Name   Niche   Types   Fee   Boost   Tools  

Indiegogo  30  days  

Tech,  Design,  Games  

Inkind  rewards  

4%  fixed  9%  for  flexible  -­‐  3%  Credit  card  fees  

Go-­‐Go-­‐  Boost   Social  Media  Fulfillment  

Kickstarter  30  days    

Artist,  Designs,  Games  

Inkind  rewards  

5%   Boosting  Algorithm  

Social  Media  Fulfillment  Early  preview  Great  visuals      

Zequs    

UK,  Charity,  Community  

Inkind  rewards  

Free   Random   -­‐  

Sponsume   UK   Inkind  rewards  

Random   -­‐  

Buzzbnk   UK,  Social  Enterprises,  Charities  

Crowdloans  Inkind  rewards  

5%   Random   Fulfillment  Loan  

Seedrs   UK,  Startups  Tech  

Equity   7.5%   -­‐   Social  Media  Fulfillment  Early  preview  Great  visuals    

Crowdfunding  Components  Problem  –  Solu,on  

Strategy  

Plan  

Engaging  with  crowd  Digital  Media  

Team  

Finance    

Crowdfunding  Problem  

Solution  

Clear  Ask  

Product/Service    

Deadline  

Rewards  

Crowdfunding  platforms  +  

Tools  

Campaign  

Fee  

Why  is  crowdfunding  relevant  for  you?  

Why  is  crowdfunding  relevant  for  you?  

My  charity  is  not  suitable  for  crowdfunding  

Objec,ves:  Fundraise?  Engage  with  community?  Create  dialogue,  Marke,ng  and  PR,  Create  momentum      What  do  I  offer?  Product  or  Service  What  story  could  I  tell?  How  could  I  engage  with  my  community?  Why  would  I  like  to  engage  with  the  crowd?  

Story  about  crowdfunding  begins  with  Danae,  Slava  and  Eric  in  2008.    

Danae  went  to  Berkeley  to  start  a  company  that  would  democratize  fundraising.  

Rubin  said  the  site  is  “all  about  allowing  anybody  to  raise  money  for  any  idea.”  

Funding  your  idea  

Indiegogo’s structure allows users to create a page for their funding campaign, set up an account with PayPal, make a list of "perks" for different levels of investment, then create a social media-based publicity effort. Users publicize the projects themselves through Facebook, Twitter and similar platforms. The site levies a 4% fee for successful campaigns. For campaigns that fail to raise their target amount, users have the option of either refunding all money to their contributors at no charge or keeping all money raised but with a 9% fee.

Local Economy.  

Crowdfunding: A Catalyst for Local Economic Growth

‘Crowdfunding  allows  people  to  vote  for  schemes  they  like  with  their  wallets.  So  from  a  council’s  point  of  view,  it’s  a  powerful  way  of  measuring  the  popularity  of  projects.  Pledgers  are  only  charged  if  an  idea  hits  its  target,      Chris  Gourlay.    

Why  is  crowdfunding  relevant  for  you?  

Inkind  rewards/perks    Equity    Crowdloans  

 interest    interest-­‐free    profit-­‐sharing    revenue-­‐sharing  

What  are  the  differences?  

What’s your spark? Inkind rewards/perks

Equity

Crowdloans    interest    interest-­‐free    profit-­‐sharing    revenue-­‐sharing  

Name   Finance  options  

Rewards   Equity   Terms   Eligibility  

Indiegogo  30  days  

Inkind    

Inkind  rewards  

none  

Kickstarter  30  days    

Zequs    

Sponsume  

Buzzbnk  

Seedrs  

End  of  Crowdfunding  101  

Crowdfunding in action taster

Exercise  1:  Transparency.  

Imagine  you  are  late  with  your  deliveries  And  your  crowd  has  started  calling  you  names  on  your  site.    What  will  you  do?  

Exercise  2.  

Rewards.  

Asking  for  money.  

Askinor  money.  .  Exercise  3.  

Exercise  4.  Planning  your  video.  

 Crowdfunding  strategy  for  charities  -­‐  ½  day    Planning  your  campaign  -­‐  1  day  •  Set  goals  •  Budget/Finance:  Costs,  Time,  Shipping  Costs.  •  Prepare  contacts  •  Rewards,  Perks  

•  Marketing/  Digital  Marketing    Project  Plan–  ½  day  

 Organize  a  team    Prepare  your  video,  design  a  script  -­‐  1  day    Involve  your  community  –  ½  day  Convince  people  to  become  your  advocates    Potential  Problems  and  risks  1  hr    

Crowdfunding  in  Action  

Crowdfunding  Strategy  for  Charities  

•  Exploring  your  charity  model  •  Donor  vs  crowd  relationships  •  Develop  objectives  •  Develop  and  explore  around  products  &  services  

•  Develop  how  crowdfunding  will  fit  into  your  overall  funding  strategy