Crowdfunding & Crowdsourcing

download Crowdfunding & Crowdsourcing

of 33

  • date post

    18-Nov-2014
  • Category

    Technology

  • view

    1.124
  • download

    0

Embed Size (px)

description

Crowdfunding has grown increasingly popular in the nonprofit sector over the past few years, thanks to the Internet and crowdfunding platforms like Kickstarter and Indiegogo. The question on every non-profit, charity and fundraiser’s mind is “can crowdfunding really raise a lot of money for my cause?” The answer is yes - if you do it properly. Christopher Charlesworth, co-creator of the CSI Catalyst crowdfunding platform for social good, co-lead a workshop on crowdfunding at Toronto Net Tuesday on October 8th, 2013. Chris explained the fundamentals of crowdfunding, what it can mean for nonprofits, and shared tips and strategies on how to plan a successful crowdfunding campaign. You can watch a recording of the event on TechSoup Canada's YouTube channel: http://www.youtube.com/watch?v=YlzzeKQi6bc Or read a summary of the event's key takeaways at http://www.techsoupcanada.ca/en/community/blog/intro-to-crowdfunding-for-nonprofits

Transcript of Crowdfunding & Crowdsourcing

  • 1. Crowdfunding & Crowdsourcing Oct 8th 2013 Christopher Charlesworth info@hivewire.ca @HiveWireCA
  • 2. About Us Christopher Charlesworth Co-Founder Asier Ania Co-Founder Moira Klein-Swormink Finance Arthur Prevot Data Scientist 2013, All rights reserved HiveWire Inc. Kris Olafson CTO Jean-Franois Obregon Marketing 2
  • 3. CSIs Catalyst Partners: Centre for Social Innovation www.csiCatalyst.org @csiCatalyst Platform CSIs Catalyst (powered by HiveWire) Platform Type Rewards Based PlaForm Differentiation People creaHng a beIer world Real World Community Extra Support 2013, All rights reserved HiveWire Inc. 3
  • 4. Crowdsourcing: The exchange of value between you and the crowd 2013, All rights reserved HiveWire Inc. 4
  • 5. What is: Crowdsourcing ? CrowdWisdom: Solve a Problem 75% of people in the crowd already knew the soluMon. CrowdAdvocacy: Support something People-powered poliMcs to decision making. CrowdCreaHon: Create something Army of graphic designers at your service CrowdLabour: Complete tasks Millions or workers compleMng simple tasks CrowdVoHng: Select something CrowdFunding: Fund something 2013, All rights reserved HiveWire Inc. Very basic and employed by many sites ~$300 M in funding in 2012 5
  • 6. Case Study: 2013, All rights reserved HiveWire Inc. 6
  • 7. Crowdfunding 101 2013, All rights reserved HiveWire Inc. 7
  • 8. What is Crowdfunding Crowdfunding is the aggregaMon of small amounts of money from a large group of people via the internet in order to fund something (business, project, etc.) Four Types Equity Ownership / Prot Sharing Lending Percent Return (peer to peer or aggregaMon) Rewards: Non-monetary Returns (e.g. t-shirt, product, lunch with founders. Legally a donaMon.) Donation: Non-tangible feel good return. 2013, All rights reserved HiveWire Inc. 8
  • 9. Rewards Crowdfunding Two Rewards Models: Keep What You Raise You keep the total you have raised regardless of reaching your target All or Nothing You only get the money raised if you reach (or exceed) your target 2013, All rights reserved HiveWire Inc. 9
  • 10. Who is Crowdfunding ? Most AcHve Categories (Rewards-based) Fashion 8% Social Causes 18% Other 29% Business & Entrepreneurship 16% Music & Recording Arts 11% Films & Performing Arts 18% Source: 2013 Crowdfunding Industry Report, MassoluMon 2013, All rights reserved HiveWire Inc. 10
  • 11. Key Factors of Success Quality Idea & Pitch EnHcing Rewards Strength of Your Network MarkeHng Campaign 2013, All rights reserved HiveWire Inc. 11
  • 12. Rewards Types of Rewards RecogniHon: Examples: twicer menMon, email thank you, name posted somewhere, name in credits, etc. Things: Examples: pin, t-shirt, CD/DVD, signed photograph, prototype of your product, your nished product, something unique, etc. Services: Examples: your specic service, dance lesson, workshop, etc. Access: Examples: advanced Mckets to a conference or event, limited access to a launch party, etc. Experiences: Examples: help build project, apprenMce for a day, chat, lunch with the co-founders, a character named afer you, etc. 2013, All rights reserved HiveWire Inc. At what reward levels do most people give? $100 Most Money Comes From $25 Most Popular Reward $50 - $70 Average Reward 12
  • 13. Why do people Crowdfund ? Why Crowdfund ? Money MarkeMng & PromoMon Market ValidaMon Connect with audience/customers Key Takeway: Its not just about raising money! Source: 2013 Crowdfunding Industry Report, MassoluMon 2013, All rights reserved HiveWire Inc. 13
  • 14. Platforms Industry fees typically range from 2% - 9% + Payment gateway fees Sources: 2013 Crowdfunding Industry Report, MassoluMon, HiveWire Data 2013, All rights reserved HiveWire Inc. 14
  • 15. Case Study 2013, All rights reserved HiveWire Inc. 15
  • 16. Case Study: Tell your story 2013, All rights reserved HiveWire Inc. 16
  • 17. TELL YOUR STORY Stories add meaning and meaning ignites acMon. Make people feel your message not just understand it. -Terry OReilly 2013, All rights reserved HiveWire Inc. 17
  • 18. Rewards Why people would back you Cool Rewards: People love to get something! Shared Passion: What youre doing can resonate with others Solidarity Part of a movement ParHcipaHon: Part of a collecMve goal Kindred Spirits: SupporMng an entrepreneur in a similar eld as the backer Etc. Key Takeway: Know your target audience! 2013, All rights reserved HiveWire Inc. 18
  • 19. Marketing: Getting eyeballs ! How do you get the word out? Friends & Family Mailing Lists Important Nodes Digital Media Direct personal emails, Facebook, TwiIer PR Word of mouth STRATEGY & PLANNING ! Key Takeway: It takes a lot of eort! 2013, All rights reserved HiveWire Inc. 19
  • 20. Campaign Content TEST and Iterate! What: Video: Is it compelling, does it make sense. Rewards: Are they enMcing, are they at the right levels MarkeMng: Is it working? From Who: Your close friends and family (they will spend the Mme) People within your industry (it should resonate within) People outside your industry (anyone should understand it) Your BACKERS! (idenMfy why they backed and use/iterate) 2013, All rights reserved HiveWire Inc. 20
  • 21. CROWDFUNDING FOR A BETTER WORLD www.csiCatalyst.org : info@csiCatalyst.org @csiCatalyst Workshops: bit.ly/csiCatalyst
  • 22. Questions? 2013, All rights reserved HiveWire Inc. 22
  • 23. Thank you. 215 Spadina Ave, Suite 425 Toronto, ON Canada M5T 2C7 info@hivewire.ca Twitter: @HiveWireCA
  • 24. Appendix 2013, All rights reserved HiveWire Inc. 24
  • 25. Success & Failure Campaign Volume and Success Rate (Kickstarter, 2012) 12,000 Number of Campaigns 10,000 8,000 6,000 4,000 2,000 - Campaign Category Most Failures are BIG Only 10% raised 30% of goal Only 3% made it to 50% of goal Campaigns Launched "Campaigns Successful" Sources: hcps://www.kickstarter.com. Dynamics of Crowdfunding, Ethan Millick, Wharton School 2013, All rights reserved HiveWire Inc. 25
  • 26. Case Study: Documentary Film 2013, All rights reserved HiveWire Inc. 26
  • 27. Case Study: Market Validation 2013, All rights reserved HiveWire Inc. 27
  • 28. Case Study 2013, All rights reserved HiveWire Inc. 28