Crowdfunding: Fundraising on the Edge

February 28, 2011

Zerodivide.org - @ZeroDivideOrg - facebook.com/ZeroDivideorg

2

Speakers

Tom Dawkins,

Colin Mutchler, LoudSauce.com

Josh Tetrick, 33Needs.com

3

Straw Poll Question #1

Are you representing a…?

a)Nonprofit organization

b)For profit

c)Consultancy

d)Foundation

e)Other

4

Straw Poll Question #2

Are your learning goals to…?

a)Understand what crowdfunding is & how it works

b)Find a platform to suite my needs

c)Know how to launch a campaign

d)All of the above

5

Lots of Crowdfunding Platforms & Initiatives

Source: http://www.smartermoney.nl/?p=35#platforms

6

But what actually is “Crowdfunding”?

According to Wikipedia:

• The collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations.

• From disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company or small business or creating free software.

Source: http://en.wikipedia.org/wiki/Crowd_funding

7

Why is “Crowdfunding” emerging now?

• A version of fundraising for the age of social media.

• Individuals in crowds are able to play a semi-public role in supporting what they believe in.

• Funding between a few hundred and ~$10,000 a gap in traditional fundraising sector.

• For orgs and individuals, crowdfunding plays a promotional role in addition to fundraising.

8

Comparing some Crowdfunding Platforms

9

Lessons from successes

• Make a strong personal video that asks for support and invites participation in your journey. It’s the most effective way to motivate your supporters.

• Be creative and personal with your rewards, which don’t need to be physical or cost money. Make them unique to your project or organization.

• Design for the full arc of your fundraising period from kick off, to updates and early successes, to the final push. Prepare a story for your success.

• For Non-profits and social organizations, use crowdfunding as much for building audience as for the actual funds.

12

14

15

16

17

18

•March 22, 2010

© 2010 AP Photo/Color China Photo/Li Huang© 2010 AP Photo/Color China Photo/Li Huang

Millions want to invest in good. We enable them @ 33needs.com

19

Misiones, Argentina

•September 26, 2010

© 2009 AP Photo/Anupam Nath

need + idea = 1 million pairs given away in only 4 years

Misiones, ArgentinaMisiones, ArgentinaSeptember 23, 2010September 23, 2010

20

20

21

Tech is cool; being human is cooler

Concrete projects

Lessons

22

33

11

Stories, stories, stories

22

What:

• Crowdfunding platform for social good initiatives

• Allows for-profit, nonprofit and unincorporated groups to raise funds

• A “kickstarter for social change”

• Launching today!*

• International: Initial ventures from USA, Australia, New Zealand, Singapore, Philippines

• Campaigns blended with profiles

*I hope!

23

Current Models:

All-or-nothing Keep What You Raise

Ie.: Ie.

Pros: Pros:

Game dynamics Guaranteed money/no risk

Security of outcome Security of income

Cons: Cons:

Insecurity of income Insecurity of outcome

Lack of info/context Lack of info/context

24

Our solution - The Tipping Point Model:

25

What makes StartSomeGood Unique?

• Social impact focused

• Allows all legal structures

• Tipping-point model

• Project/profile blend

• Non financial support

26

Ventures:

BalbusSpeech - rethinking speech language pathology

Maternova - improving maternal health in West Africa

GreenSoul Shoes - 100% up-cycled sandals

Inspiring Stories Trust - Youth filmmaking for good

Gumball Capital - spreading social enterprise to youth

UnCollege - Independent learning community

Performance Capital - Building water wells in Senegal

Wildstar Farm - sustainable farming and education

Hair Flare for Hope - fun and funky wigs for kids with cancer

27

Case Study – How to fund a Social Enterprise?

• New nonprofit venture

• Housed within existing community-based organization

• Multimedia production house run by youth

• Customers are nonprofits, schools, small business

• Want to fund startup costs & nonprofit projects @ $15,000

28

Case Study 2 – How to fund an entrepreneur?

• New unfunded project idea

• Nonprofit staff outsourcing exchange

• Need to raise $5,000 in startup capital

29

Contact info

Tom Dawkins, StartSomeGood.com

tom@startsomegood.com @tomjd @StartSomeGood

Colin Mutchler, LoudSauce.com

colin@loudsauce.com @activefree

Josh Tetrick, 33Needs.com

joshuatetrick@gmail.com @joshtetrick

Paul Lamb, ZeroDivide

pauljlamb@gmail.com @plamb @zerodivideorg