Crowdfunding Class

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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

  • CROWDSUNITE CEO- ALEX FELDMAN 1 What is CrowdFunding?
  • Content 2 What is Crowdfunding Industry stats Different type of crowdfunding
  • Traditional 3
  • CrowdFunding 4 Benefits Platform 1.Validating the market 2.User Acquisition 3.User Marketing 4.Feedback Challenges 1.Fraud 2.Failure 3.Need Crowd
  • Timeline 5
  • Industry Growth Millions($) 6 *Data from 2013 Massolutions crowdfunding industry report 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
  • Crowdfunding Market Size 7 *Data from 2013 Massolutions crowdfunding industry report
  • Crowdfunding Choices 8 E q u it y D e b t R e w a
  • Donation 9 Exchange for Funding Thank You Platforms In vetro fertilization - $8,000 For Non-profits, philanthropic projects Sandy 740 results Stats Average raise $1,400 Crowdfunding Industry size $1.4 Billion in 2013 USA Donation Industry - $300B 10% of charities give less than 65% Cancer treatment - $4,000 Skate Camp -$20,000
  • Reward 10 Exchange for Funding Platforms Good or service 51 projects over $1M For Pre-sale items, have large crowd Music Largest campaign - $33,000 Stats Average raise $2,300 Industry size $1.3 Billion in 2013 More than 50% fail to reach goal Star Citizen - $26M, 291,000 people $2M on KickStarter Local Businesses
  • Debt 11 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 $4,700 Industry size $2.1 Billion in 2013 Platforms Total $2 Billion,140K loans Average interest rate over 10% $50M in October, Overall $700M Raised $100M $150M-$200M in business loans in 2013 Crowdfunding for un accredited
  • Equity 12 Exchange for Funding Ownership of business Platforms 1753 companies looking for funding For Growing companies, Exit opportunity $20M Raised for 20 companies Stats Average raise $190,000 Industry size $165 M in 2013 $65M in collective investor interest
  • Royalty 13 Exchange for Funding Platforms Percentage of the revenue For No bankruptcy risks, No equity loss Pay only when you make money, Support local businesses Invest in people Stats $7M funding