2000 600000 55000

• Research Members:

Chen Wanfeng, Huang Yiya, LV Qixun,Pan Fan, Zang Mengyu

Introduction• What is Crowdfunding?

• History of Crowdfunding

• What is crowdfunding?

Old Method

• What is crowdfunding?

Entrepreneur Loan Officer/VC

Crowdfundingwebsite

New Method

• What is crowdfunding?

Entrepreneur

Social MediaCrowd-investors/

Donors

$ $ $ $ $ $ $

• History of Crowdfunding

• crowdfunding was derived from a Boston musician and computerprogrammer, launched ArtistShare in 2003.

Types of crowdfunding• Four types of crowdfunding

• Specific focus on equity based crowdfunding

• 4 types of crowdfundingTypes Contribution Retribution Representative

platforms

Donation-BasedCrowdfunding

small amounts of money(typically between $1and $1,000, sometimesmore)

none

Reward-BasedCrowdfunding

small amounts of money(typically between $1and $1,000, sometimesmore)

Reward(often a product

or service)

Equity-BasedCrowdfunding

larger amounts ofmoney (at least $1,000and often a lot more)

a small piece of equity

Lending-BasedCrowdfunding

(P2P)

make a loan principalplus interests

• 4 types of crowdfunding

Sources: http://if.pedaily.cn/news/201512/20151209161296584_all.shtml

• Equity-Based Crowdfunding

• What have happened?

In 2015, in US, SEC approved Title III of JOBS Act--Equity Crowdfunding with Non-

Accrediteds;

In China, Premier Li Keqiang issued a call for “people to start their own businesses

and to make innovations”(“双创”，大众创业，万众创新) ， in which equity-based

crowdfunding would become a very important engine

Block chain technology will get more application, such as equity registration, risk

control, and credit record, along with the development of the equity-based

crowdfunding, to meet the requirements of high efficiency, low cost, reliable.

• What will happen?

The Future of Crowdfunding• Innovative platforms/network, blockchain and

cryptocurrencies

• Other trends of crowdfunding

• A platform which takes a widespread approach to crypto equity andcrowdfunding of early projects and business ventures.

• Use Bitcoin’s second-generation protocol

Counterparty and crowdsourcing engagement

• Crowd-incubator-like systems such as Swarm use

technology built on Bitcoin to allow start-ups to raise

money by launching their own cryptocurrencies.

• Powered by Bitcoin 2.0 technology

• Future of next-generation crowdsales

• SwarmCoin

• Advantage: designed to be compliant with the existing

legal framework with respect to security offerings

Get Your Fair Share (of Project Coins)

Swarm

Sources: http://www.swarmbot.io/s/vOQq/

• A decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference

• Build and distribute decentralized applications

• Write, deploy and use your own smart contracts

• Ether

• DESIGN AND ISSUE YOUR OWN CRYPTOCURRENCY

• KICKSTART A PROJECT WITH A TRUSTLESS CROWDSALE

• CREATE A DEMOCRATIC AUTONOMOUS ORGANIZATION

• Four component

• Static content publication

• Dynamic messages

• Trustless transactions

• Integrated user interface

• Store the recent state -> Save storage space

• Blockchain protocol with a built-in programming language

Sources: https://ethereum.org/

On a blockchain, anyone can set up a

node that replicates the necessarydata for all nodes

• A platform which provides the most secure, private, and encrypted cloudstorage, using blockchain technology and peer-to-peer protocols

• Storjcoin X (SJCX)

• USERS EARN MONEY

• 10-100X MORE COST

EFFECTIVE

• SECURE, PRIVATE &

FAST NETWORK

MetaDisk – KEEP DATA• Each file -> split into shards -> encrypted

-> upload to the network• Only you, with your private key, have

access to your data.

DriveShare – EARN MONEY• Rent out extra hard disk space in exchange

for SJCX

Initial crowd offering

• Mid-October 2014

• Raised 910 BTC

• Goal: 9800 BTC

Future crowdsales

• Fund new projects and ideas

• Support development ofongoing projects

CROWDSALES

Sources: https://storj.io/

Secure Access For Everyone

• A fully decentralized platform with open-source programs

• Most of what can be done on current internet can be done with

SAFE

• Data on this platform are heavily ”shredded” into chunks and then

encrypted

• Maidsafe(Massive Array of Internet Disks) keeps track of the

allocation of hard disk space and communication between

computers

Mastercoin

Bitcoin

Crowdfunding

Create

Safecoin

40%Reward

Leftearned

by

• “Farmers” who rent out their hard disk storage space to the net works

• “Core developers” who improve SAFE network code by fixing bugs andadding new features

• “Builders” who make their applications available on the networks.

Payment is according to applications’ popularity

• A potential crowdfunding platform for application creators

sources: http://maidsafe.net/

• A potential crowdsales platform for digital assets, provides fast & reliablemessaging combines with secure and fast Bitcoin wallet

Will issue 100 million coins

• Bonus block rewards• Promotion• Marketing• Bounties• Network R&D• Operation Cost

45 million

Stakeholders

10 million

Daily airdropfor 5 yeas

45 million

Gems

• A messaging application that is built on top of Telegram.

• GetGems groups can have up to 200 members.

• Support replies, mentions and hashtags that help maintain order and

keep communication in large communities efficient.

• Has gif search, art photo editor and an open sticker platform.

GetGems

• Gems is a social network currency.

• Ways to earn Gems:• register to the app

• invite new users who register with the referral code

• tap on the "Daily Bonus”• Gems can be trade on selected exchanges

• Daily air-dropped Gems are to the “Exodus,

dress”(addresses that were given the coins).• Ecosystem automatically credits those accounts according

to contribution.

• Value of gems will increase as the network effect of thenumber of uses and advertisements kick in.

Gems

sources: http://getgems.zendesk.com/

• Self funding and self-sustaining platform gives the stakeholders the power to direct where blockchain reserves are spent

Sources :https://bitshares.org/technology/stakeholder-approved-project-funding/

• A protocol for issuingDAC shares withshareholders workingtogether to secure thesystem.

• Disrupt anything thatdeals with digitized orcollateralized assets.• music

• insurance

• Derivatives

• banking services

• and industry

Bitshares

• The business plan can be encoded in open-source software that operate automatically in

transparent manner.• Business can easily produce profits by providing services that can charge transaction or usage fees.

• These profit can in turn be distributed to holders of Bitshares.

A self-sustaining funding model

• A decentralized domain name system(DNS) that cannot be censored /shut down.

Namecoin •Top-leve domain(TLDs) such as .bit can exist that are not owned by anyone

•DNS lookup tables are shared on a peer to peer system.

Peer to peer Low fees Worldwide Secure No limit

• A decentralized peer- peer music network to develop the front- and back-end projects that give BitShares Music Blockchain or DAC

• BitShares Music Foundation is a nonprofit organization.

• PeerTracks is a company that plug into the Bitshare Music blockchain.

• It allows for a user-friendly way for artists and fans to interact with each other by being a music

track exchange that the buying and selling currency is DAC notes.

• Artists will be able to create his/her own digital currency.

sources: https://www.weusecoins.com/what-is-namecoin/

sources: http://peertracks.com/

• Colored Coins is based on blockchain technology and focuses on using the technology to hold

real assets.

• Since the blockchain is public, it allow color-specific addresses, which hold colored bitcoins.

• One can track the assets simply by knowing the first Colored Coins and tracking them throughout

transaction history.

• Finally a way to manage a truly decentralized crowdfuding campaign where investors don’t have

to trust a complex and limited exchange protocol, the “distribute” feature creates standard

Bitcoin transactions.

• A way to manage a truly decentralized crowdfunding campaign with realassets

Australian hair salon Klipptstarted crowdfunding campaignwith colored coins.

Vapetropolis held an IPO on the Bitcoin blockchain using Colored Coins, through Coinprism

Sources: http://blog.coinprism.com/

• A debt recording, clearing and settlement agent without real-world enforcement power.

Native Currency

XRP

Create 100 billion

• Creators• Seeders• VC companies• Other founder

20%left

55%

• Users• Strategic partners

• Ripple ledger only records the amounts owed by users to

another for the Ripple native currency XRP-denominated

transactions and its use in house ledger and for transaction in

other assets.

• Users will have to define who they trust as peer and set the

limit of lending for different instruments.

• The users themselves are responsible for the counter party risk

and they can act as market makers.

• Small transition fees is charged for each transaction as an

antispam measure and the fee paid in XRP is destroyed.

• The gate way to redemption and subscription is via Ripple

network.

International Payment Infrastructure Costs

Sources :https://ripple.com/

• Hiring specialists to run their crowdfunding campaigns

The agency 2.0 has managed more than

campaigns, with average funding increasing .

Startups Agency

200

Sources: www.entrepreneur.com/article/248122

In fact, an increasing number of VCs

want startups to engage in

crowdfunding campaigns to test

their products and ask for customer

feedback.

• VCs and crowdfunding will co-exist

Sources: www.entrepreneur.com/article/248122

crowdfunding campaign posted in the AngelList

• drive corporate innovation

• offer alternatives to focus groups

Test the market for

new products

•The entrance of Fortune 100companies destroy thecrowdfunding culture

Make it harder for startups to stand out.

• More corporations launch projects on crowdfunding

Sources: www.entrepreneur.com/article/248122

Reference Book:

David Lee Kuo Chue－Handbook of Digital Currency Bitcoin，Innovation Financial Instruments，and Big Data－Academic Press（2015）

Q&A Thank you!