Crowdfunding 101
Kartika Tulusan Technology. User innovation. Crowdfunding
Kartika Tulusan Technology. User innovation. Crowdfunding
Your crowdfunding campaign
Crowdfunding in Action
Digital tools in Action
Crowdfunding 101
Digital tools 101
Where are we?
Part 1 • What is crowdfunding? • Components of crowdfunding
• Types of platforms
• Why crowdfunding is relevant for you and your charity?
• History of crowdfunding • Banks vc VC • Local Economies
Crowdfunding 101 -‐ What will you learn?
Part 2 • Casestudies • Crowdfunding types
• Crowdfunding, rewards-‐based • Crowdloans • Crowdequity
• Crowdfunding campaigns in detail • Planning your campaign
Exercise: Take a look at Kickstarter, Indiegogo, Trillionfund and Crowdcube and look for the following components.
1. Problem, Solution, Plan 2. Product, Service? 3. Rewards, Warm glow, Stuff or Equity? 4. Fee
Name Niche Types Fee Boost Tools
Indiegogo 30 days
Tech, Design, Games
Inkind rewards
4% fixed 9% for flexible -‐ 3% Credit card fees
Go-‐Go-‐ Boost Social Media Fulfillment
Kickstarter 30 days
Artist, Designs, Games
Inkind rewards
5% Boosting Algorithm
Social Media Fulfillment Early preview Great visuals
Zequs
UK, Charity, Community
Inkind rewards
Free Random -‐
Sponsume UK Inkind rewards
Random -‐
Buzzbnk UK, Social Enterprises, Charities
Crowdloans Inkind rewards
5% Random Fulfillment Loan
Seedrs UK, Startups Tech
Equity 7.5% -‐ Social Media Fulfillment Early preview Great visuals
Crowdfunding Components Problem – Solu,on
Strategy
Plan
Engaging with crowd Digital Media
Team
Finance
Crowdfunding Problem
Solution
Clear Ask
Product/Service
Deadline
Rewards
Crowdfunding platforms +
Tools
Campaign
Fee
Why is crowdfunding relevant for you?
Why is crowdfunding relevant for you?
My charity is not suitable for crowdfunding
Objec,ves: Fundraise? Engage with community? Create dialogue, Marke,ng and PR, Create momentum What do I offer? Product or Service What story could I tell? How could I engage with my community? Why would I like to engage with the crowd?
Story about crowdfunding begins with Danae, Slava and Eric in 2008.
Danae went to Berkeley to start a company that would democratize fundraising.
Rubin said the site is “all about allowing anybody to raise money for any idea.”
Funding your idea
Indiegogo’s structure allows users to create a page for their funding campaign, set up an account with PayPal, make a list of "perks" for different levels of investment, then create a social media-based publicity effort. Users publicize the projects themselves through Facebook, Twitter and similar platforms. The site levies a 4% fee for successful campaigns. For campaigns that fail to raise their target amount, users have the option of either refunding all money to their contributors at no charge or keeping all money raised but with a 9% fee.
Local Economy.
Crowdfunding: A Catalyst for Local Economic Growth
‘Crowdfunding allows people to vote for schemes they like with their wallets. So from a council’s point of view, it’s a powerful way of measuring the popularity of projects. Pledgers are only charged if an idea hits its target, Chris Gourlay.
Why is crowdfunding relevant for you?
Inkind rewards/perks Equity Crowdloans
interest interest-‐free profit-‐sharing revenue-‐sharing
What are the differences?
What’s your spark? Inkind rewards/perks
Equity
Crowdloans interest interest-‐free profit-‐sharing revenue-‐sharing
Name Finance options
Rewards Equity Terms Eligibility
Indiegogo 30 days
Inkind
Inkind rewards
none
Kickstarter 30 days
Zequs
Sponsume
Buzzbnk
Seedrs
End of Crowdfunding 101
Crowdfunding in action taster
Exercise 1: Transparency.
Imagine you are late with your deliveries And your crowd has started calling you names on your site. What will you do?
Exercise 2.
Rewards.
Asking for money.
Askinor money. . Exercise 3.
Exercise 4. Planning your video.
Crowdfunding strategy for charities -‐ ½ day Planning your campaign -‐ 1 day • Set goals • Budget/Finance: Costs, Time, Shipping Costs. • Prepare contacts • Rewards, Perks
• Marketing/ Digital Marketing Project Plan– ½ day
Organize a team Prepare your video, design a script -‐ 1 day Involve your community – ½ day Convince people to become your advocates Potential Problems and risks 1 hr
Crowdfunding in Action
Crowdfunding Strategy for Charities
• Exploring your charity model • Donor vs crowd relationships • Develop objectives • Develop and explore around products & services
• Develop how crowdfunding will fit into your overall funding strategy