Post on 31-May-2020
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Implementing Crowdfunding A How To Guide
Implementing Crowdfunding A How To Guide for SCORE Clients
January 2019
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Implementing Crowdfunding A How To Guide About Crowdfunding
Source: http://crowdsunite.com/what-is-crowdfunding/
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Implementing Crowdfunding A How To Guide About Crowdfunding
Source: http://crowdsunite.com/what-is-crowdfunding/
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Implementing Crowdfunding A How To Guide
Crowdfunding (y/e 2015 global estimates)
Source: http://crowdexpert.com/crowdfunding-industry-statistics/
• $34B(e) in Crowdfunding in 2015 (more current estimates align with this and w rapid
YoY Growth)
• 74% via Loans (i.e. Lending Club, LendingTree) • Donation (GoFundMe, IndieGoGo), Reward (KickStarter,
IndieGoGo) and Equity (AngelList, CrowdCube) each made up appx 7% of the market
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Implementing Crowdfunding A How To Guide Crowdfunding
• Fastest growing funding
source globally
• 2013: $6.1B
• 2014: $16.2B
• 2015(e): $34B
• Analysts forecast
CAGR of 26.87%
during the period 2016-
2020.
• At the same time the
number of
crowdfunding portals is
also exploding Source: http://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/05/06/crowdfunding-a-new-frontier-for-investors
http://crowdfundbeat.com/2016/02/03/report-global-crowdfunding-market-2016-2020/
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: Real Estate
Investments
Source: https://thecollegeinvestor.com/18086/top-real-estate-crowdfunding-sites/
Updated Jan 2, 2019
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: Real Estate
Investments
Source: Fundrise
Updated Jan 2, 2019
Fundrise – Real Estate Investments
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: Kickstarter: All or
Nothing
Updated July 16, 2018
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: Kickstarter: All or
Nothing
Top 8 categories by total dollars – more detail on their website
Updated July 16, 2018
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: Kickstarter: All or
Nothing
Distribution of amount raised for successful projects for top 9 categories
Updated July 16, 2018
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: Indiegogo
Get to choose campaign style: “all or nothing”, or “keep what you raise”
Updated Jan 2, 2019
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Implementing Crowdfunding A How To Guide
Crowdfunding Indiegogo: Expanded Services
Equity Crowdfunding is a new addition for Indiegogo
Updated July 16, 2018
Via First Democracy VC
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: Lending Club:
Personal Loans
Updated Jan 2, 2019
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Implementing Crowdfunding A How To Guide
Crowdfunding Lending Club: Business Loans too
Updated July 16, 2018
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: Kiva: All or Nothing
Updated July 16, 2018
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: IFundWomen: A Different
Approach
Updated Jan 2, 2019
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: IFundWomen: A Different
Approach
Updated Jan 2, 2019
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Implementing Crowdfunding A How To Guide
Crowdfunding Some Key Sites: IFundWomen: A Different
Approach
Updated July 16, 2018
“Keep what you Raise”. Can adjust the dates and length of your campaign
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Implementing Crowdfunding A How To Guide
Crowdfunding
Key Steps
1. Learn the Basics – 1 week
2. Pick a Crowdfunding Platform – 1 to 2 weeks
3. Plan your Campaign – 2 to 6 weeks
4. Execute your Campaign – 4 weeks
5. Post Campaign Capitalization – 4+ weeks
Total Time: 8-13 weeks for steps 1-4
• Timeframes assume a highly motivated applicant
• Timeframes are estimates and will vary based on platform and
applicant
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Implementing Crowdfunding A How To Guide
#1: Learn the Basics 1 week
• Crowdfunding “clearing site”: http://crowdsunite.com/
– Educational articles (from basics to advanced), news, tools and
classes
– Vendors who can help create a campaign
– Real-time tool that can filter among the top 400 sites for a given
need
– User reviews (currently 500) of the major sites
• Crowdfunding news – these are constantly changing
– www.crowdfundinsider.com includes “who received funding” articles
– www.crowdcrux.com includes its favorite sites for news
– www.cnbc.com/crowd-finance/ a lighter read
Learn everything you can about Crowdfunding.
You CAN become an “expert” in a short period of
time. Key sites include:
Updated July 16, 2018
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Implementing Crowdfunding A How To Guide
#1: Learn the Basics 1 week
If your goals are large, learn about sites that can help you
Crowdfund Marketing Services Firms
Source: crowdfundusa.org
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Implementing Crowdfunding A How To Guide
#2 Pick a Platform 1 - 2 weeks
Identify your Options
• Speak with others in your industry who have
successfully crowdfunded
• “Google” your type of business and crowdfunding and
see what comes up. Be as specific in your search as
you can.
• Check out IFundWomen, even if you are a guy. The
site has easily readable and well thought through
guides.
• Use the CrowdsUnite Tool and the type of funding you
are seeking to determine their recommendations. Pay
attention to the Alexa score. It is a helpful guide
• Narrow it down to 3-4 potential sites and prioritize
them.
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Implementing Crowdfunding A How To Guide
#2 Pick a Platform 1 - 2 weeks
Vet the 3-4 potential platforms
• Signup on each site as both an applicant and as an
investor. You will likely need to use two email
addresses
• Read through the site’s guidance as to what makes an
applicant successful and take notes.
• Log on as a potential investor and “rapid scan” from
applicant to applicant (what investors do) and see what
if anything jumps out at you. Make notes.
Compare notes and select your platform
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Implementing Crowdfunding A How To Guide
#3 Plan your
Campaign 2 - 6 weeks
1. Based on Observations in the prior step,
determine the content and presentation of your
crowdfunding site.
– What will you say in the text to hit on themes that will
resonate with “rapid scan” investors?
– Do you need a photograph? If so what story must it
present to be compelling?
– Do you need a video? If so, at what level of quality?
Does it need to be professional or will an iPhone vide
work?
How will you test this before launch?
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Implementing Crowdfunding A How To Guide
#3 Plan your Campaign 2 - 6 weeks
2. Potential Investors will come from two sources:
– “rapid scan” visitors to the site who know nothing
about you and will be swayed or not by a quick glance
at your content and presentation
– People whom you direct to the site
• Who will you ask to view your crowdfunding site?
• What will you say to them to cause them to take action?
• How will you reach them (i.e. social media posts, email,
advertising, etc)?
• How often and when will you reach out to them?
You need a plan that answers these questions
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Implementing Crowdfunding A How To Guide
#3 Plan your Campaign 2 - 6 weeks
When Message Channel & target
- 3 weeks Here is what we plan to
do and why!
-Email to select contacts
-Blog post and to social media
-Tell everyone you meet
- 1 week Getting ready. We are
excited
-Same as prior step, except email to all
contacts
Launch week We are live! Please
support us!
-Email to all contacts
-Blog post and social media
Targeted social media advertising
+ 1 & 3 weeks Progress update -Same as prior, minus email
Final Week Progress update and final
push
-Email to all contacts
-Blog post and social media
-Targeted social media advertising
Final + 2 weeks Thank you & here are the
results
-Email to all supporters
-Blog post and social media
Hypothetical Promotion Plan
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Implementing Crowdfunding A How To Guide
#4 Execute your Campaign 4 weeks
• Execute the Plan defined in the prior step,
adapting timing and messaging as needed
• Keep up the buzz by staying on top of and
responding to comments on your Crowdfunding
site
• Drive progress updates through your social
media and general business promotion
channels. Keep it light and fun!
• Capture contact information from funders and
well wishers. These are potential customers.
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Implementing Crowdfunding A How To Guide
#5 Post Campaign 4+ weeks
• Crowdfunding campaigns generate a lot of
information. Key Post-Campaign activities
include:
– Assess what worked and what did not. Especially
important if you did not “close the deal”.
– Thank your “investors” and advisors.
– Reach out to “investors” on a regular basis to keep
them updated on your business. They are potential
customers and potential sources for new
customers.
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Implementing Crowdfunding A How To Guide Case Studies
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Implementing Crowdfunding A How To Guide
#2 Pick a Platform 1 - 2 weeks
To illustrate these guides, we will use examples of a hypothetical photography
company that wants to raise funds for a project TBD
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Implementing Crowdfunding A How To Guide
#2 Pick a Platform 1 - 2 weeks
Google “photography crowdfunding project”
Street Art in Cuba – raised $3.4K
out of desired 7K. Did not get the
$$ as FotoFund is an “all or
nothing” site
Shows a number of projects one of
which is for a planned book about surf
culture in NY & NJ which has raised
$16K so far. With Indiegogo you can
keep the funds even if $20K goal is
not reached.
No use. References a 2012 Tech
project which time has passed by.
Interesting but from 2012
Lesson Learned: You can get funded
especially for books and documentaries
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Implementing Crowdfunding A How To Guide
#2 Pick a Platform Hypothetical Pick
Source: http://crowdsunite.com Updated April 11, 2018
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Implementing Crowdfunding A How To Guide
• Compare the top 3-4 platforms
• Information is incomplete (but is
far more complete than it was a
year ago)
• What jumps out are
KickStarter’s 3.5MM monthly
visitors 8-10% fees for
successful campaigns and
65% funding success rate
• Have a bias for Kickstarter as it
has a large user base, decent
funding success is Rewards
based and you don’t have to
pay it back.
• Will try Fotofund If going for a
book project
#2 Pick a Platform Hypothetical Comparison
Source: http://crowdsunite.com
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Implementing Crowdfunding A How To Guide
• Read reviews on each possible site, both reviews on CrowdsUnite and by
“Googling” “XXXX revews”
• Review below is from CrowdsUnite
#2 Pick a Platform Hypothetical Comparison
Source: http://crowdsunite.com
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Implementing Crowdfunding A How To Guide
#2 Pick a Platform 1 - 2 weeks
“Successful Campaigns”
Kickstarter (only keep if you reach your goal)
Fotofund and Indiegogo
Book about Olympic Cities – raised
$66K of $45K target. Nice rewards
Ice Cream Headaches Book (raised
21K, 109% of target (Indiegogo).
McCloud River Art Book. Raised
$29K of $25K target. More limited
rewards.
Archive of photos from 1998-2008.
Raised $2.5K – goal. (Fotofund)
New York Pizza Project – captures
the foods of the city. $25K of $15K
target
Collection of fashion images. $3k
raised – campaign is open ended
(Fotofund)
Book about LGBTQ Student Athletes
$55K of $50K target.
Athens Potluck Photobook (raised
$38K, 125% of target (Indiegogo)