CEO- ALEX FELDMAN

Introduction to CrowdFunding

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crowdsunite.com

Credentials

Six years in Investment Banking, MBA from NYU Founder and CEO of CrowdsUnite, largest user

review website in the world for funding platforms

Run monthly crowdfunding networking meetup in NYC with over 500 members, http://www.meetup.com/NYC-CrowdFunding-Networking

Taught workshop about crowdfunding at NYU Spoke at panels in conferences My articles have been featured on

crowdsourcing.org and crowdfundinsider.com Crowdfunded myself on Upstart In the January issue of Entrepreneur Magazine

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crowdsunite.com

Content3

What is Crowdfunding

Industry stats

Different types of Crowdfunding

Tips for successful Crowdfunding

crowdsunite.com

Traditional4

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CrowdFunding5

Platform(Website)Benefits

1.Validating the market2.User Acquisition3.User Marketing4.Feedback

Challenges

1.Fraud2.Failure over 50%3.Need Crowd4.Extrovert

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Incentives6

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Timeline7

crowdsunite.com

Industry GrowthM

illi

on

s($)

“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

*Data from 2013 Massolution’s crowdfunding industry report

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crowdsunite.com

Crowdfunding Market Size

300120

2100

62

0

500

1000

1500

2000

2500

3000

USA Funding

Billi

ons ($

)

Potential – $2,500 Billion

Reward

Lending

Equity

Donation

*Data from 2013 Massolution’s crowdfunding industry report

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Crowdfunding Choices

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Donation Reward Debt Equity Royalty

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Donation11

StatsAverage raise – $1,400

Crowdfunding Industry size – $1.4 Billion in 2013

USA Donation Industry - $300B

10% of charities give less than 65%

Skate Camp -$20,000

Exchange for Funding

Thank You

Platforms

For

Non-profits, philanthropic projects

Sandy – 740 results

Cancer treatment - $4,000

crowdsunite.com

Reward

Star Citizen - $26M, 291,000 people$2M on KickStarter

51 projects over $1M, in 2013 3 million people pledged $480M

Excellent customer support

Focused on Authors

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Exchange for Funding

Good or service

For

Pre-sale items, have large crowd,Projects

Stats

Average raise – $2,300Industry size – $1.3 Billion in 2013

More than 50% fail to reach goal

Platforms

Local Businesses

Open for everybody for anything

crowdsunite.com

Debt

Raised $100M

Crowdfunding for un accredited

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$150M-$200M in business loans in 2013

Total $2 Billion,140K loans Average interest rate over 10%

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 – $4,700Industry size – $2.1 Billion in 2013

Platforms

$50M in October, Overall $700M

crowdsunite.com

Equity14

$20M Raised for 20 companies

1753 companies looking for funding

Exchange for Funding

Ownership of business

For

Growing companies,Exit opportunity

Stats

Average raise – $190,000Industry size – $165 M in 2013

Platforms

$65M in collective investor interest

Raised $23M

$75M Investment Interest

crowdsunite.com

Royalty15

Support local businesses

$7M VC funding

Invest in people

Exchange for Funding

Percentage of the revenue

For

No bankruptcy risks,No equity loss,Pay only when you make money,

Platforms

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Campaign Building16

Story • Your credential• Problem you solving and your solution• Why you need the money • Videos get double the amount.

Duration •30 days better than 60 days

Research – Look at similar campaigns on the platform you chose.(http://cf4all.com/)

Rewards •Related to the funding goal, product itself works best•have unique rewards(limited edition products, meet the team)•Most common is $25, average is $75 •Have $1 for people who just want to support you

Goal • Specific project goal• Ask for minimum that you need for the achieve that goal• Have stretch goals in place in case you go over the initial goal

Tipping point •Have 30% pledged before you launch

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Campaign Running17

Promoting • Start before the campaign• Friends, family, local community, mailing list, linkedin group, meetups groups. Find where you ideal customers are. • Media, who is talking to your customers. Bloggers, newspapers, … • Social Media

Communication •Send weekly updates to your backers

Fulfillment•Make sure you can deliver on your rewards within the time limit•Communicate any delays with your backers•For large orders work with fulfillment centers

CROWDSUNITECEO- ALEX FELDMAN

Thank You

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