Implementing Crowdfunding - Amazon S3 · Equity Crowdfunding is a new addition for Indiegogo...

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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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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/

http://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/05/06/crowdfunding-a-new-frontier-for-investors















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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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Crowdfunding Some Key Sites: Real Estate

Investments

Source: Fundrise

Updated Jan 2, 2019

Fundrise – Real Estate Investments

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Crowdfunding Some Key Sites: Kickstarter: All or

Nothing

Updated July 16, 2018

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Nothing

Top 8 categories by total dollars – more detail on their website


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Nothing

Distribution of amount raised for successful projects for top 9 categories


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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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Crowdfunding Indiegogo: Expanded Services

Equity Crowdfunding is a new addition for Indiegogo


Via First Democracy VC

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Crowdfunding Some Key Sites: Lending Club:

Personal Loans

Updated Jan 2, 2019

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Crowdfunding Lending Club: Business Loans too


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Crowdfunding Some Key Sites: Kiva: All or Nothing


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Crowdfunding Some Key Sites: IFundWomen: A Different

Approach

Updated Jan 2, 2019

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Approach

Updated Jan 2, 2019

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Approach


“Keep what you Raise”. Can adjust the dates and length of your campaign

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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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#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:


http://www.crowdfundinsider.com

http://www.crowdcrux.com

http://www.cnbc.com/crowd-finance/



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#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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#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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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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#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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#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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#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


-Targeted social media advertising

Final + 2 weeks Thank you & here are the

results

-Email to all supporters


Hypothetical Promotion Plan

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#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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#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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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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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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#2 Pick a Platform Hypothetical Pick

Source: http://crowdsunite.com Updated April 11, 2018

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• 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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• 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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“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)

Implementing Crowdfunding - Amazon S3 · Equity Crowdfunding is a new addition for Indiegogo...

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