Crowdfunding Class

Post on 07-Sep-2014

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Slides from a crowdfunding workshop that I taught at NYU. It goes over what is crowdfunding, stats about the industry, and different types of funding.

Transcript of Crowdfunding Class

CROWDSUNITECEO- ALEX FELDMAN

What is CrowdFunding?

1

crowdsunite.com

Content2

What is Crowdfunding

Industry stats

Different type of crowdfunding

crowdsunite.com

Traditional3

crowdsunite.com

CrowdFunding4

PlatformBenefits

1.Validating the market2.User Acquisition3.User Marketing4.Feedback

Challenges

1.Fraud2.Failure3.Need Crowd

crowdsunite.com

Timeline5

crowdsunite.com

Industry GrowthM

illi

on

s($)

“If U.S. families devote just 1% of their assets to investing in startups via crowdfunding, that would unleash a torrent of $300 billion annually.“ – Fred Wilson, VC at Union Square Ventures

“At the one-percent mark, globally this translates to more than a trillion dollar market.” – Kevn Lawton, author of the Crowdfunding revolution

*Data from 2013 Massolution’s crowdfunding industry report

6

crowdsunite.com

Crowdfunding Market Size

*Data from 2013 Massolution’s crowdfunding industry report

7

crowdsunite.com

Crowdfunding Choices8

Equity

Debt

Reward

Donation

Royalty

Self

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Donation9

StatsAverage raise – $1,400

Crowdfunding Industry size – $1.4 Billion in 2013

USA Donation Industry - $300B

10% of charities give less than 65%

In vetro fertilization - $8,000

Sandy – 740 results

Cancer treatment - $4,000

Skate Camp -$20,000

Exchange for Funding

Thank You

Platforms

For

Non-profits, philanthropic projects

crowdsunite.com

Reward

Star Citizen - $26M, 291,000 people$2M on KickStarter

51 projects over $1M

Music

Largest campaign - $33,000

10

Exchange for Funding

Good or service

For

Pre-sale items, have large crowd

Stats

Average raise – $2,300Industry size – $1.3 Billion in 2013

More than 50% fail to reach goal

Platforms

Local Businesses

crowdsunite.com

Debt

Raised $100M

Crowdfunding for un accredited

11

$150M-$200M in business loans in 2013

Total $2 Billion,140K loans Average interest rate over 10%

Exchange for Funding

Interest and principal

For

Need to have cash-flows and collateral,Get lower interest rate and faster approval than bank.

Stats

Average raise – $4,700Industry size – $2.1 Billion in 2013

Platforms

$50M in October, Overall $700M

crowdsunite.com

Equity12

$20M Raised for 20 companies

1753 companies looking for funding

Exchange for Funding

Ownership of business

For

Growing companies,Exit opportunity

Stats

Average raise – $190,000Industry size – $165 M in 2013

Platforms

$65M in collective investor interest

crowdsunite.com

Royalty13

Support local businesses

$7M funding

Invest in people

Exchange for Funding

Percentage of the revenue

For

No bankruptcy risks,No equity lossPay only when you make money,

Stats

Platforms