CROWD FUNDING LESSONS LEARNEDBY VIDAR @BLACKTAR ANDERSEN

VIDARANDERSEN.COM

I’M VIDAR ANDERSEN• NORWEGIAN LIVING IN COLOGNE, DE

SINCE 2005

• PROFESSIONAL EXPERIENCE WORKING WITH F500 AND GOS SOLVING PROBLEMS WITH WEB/MOBILE TECH SINCE 1997

• STARTUP FOUNDER & ENTREPRENEUR (HITS & MISSES)

• CORPORATE ENTREPRENEURSHIP CONSULTANT TO F100 CORPORATIONS THROUGH PLUSANDERSEN.COM

• EDUCATOR (STARTUP NEXT INSTRUCTOR, UNIVERSITY LECTURER ON STARTUP ENTREPRENEURSHIP & CERTIFIED LEAN LAUNCHPAD INSTRUCTOR @ STANFORD)

MORE: VIDARANDERSEN.COM

I’VE BEEN AROUND

AND MORE…

I FOUND STUFF TOO

CERTIFIED LEAN LAUNCHPAD EDUCATOR @ STANFORD 2013

#PIXORITDIDNTHAPPEN

MY CROWD FUNDING EXPERIENCES

#1

#2

NUMBER OF USERS

ALL GERMAN NATIONALPLATFORMS COMBINED

ORDER OF MAGNITUDE BIGGER

(AKA NUMBER OF READY WALLETS)

TRY #1 IPHONE APP

AN INSTAGRAM FOR ONE SECOND VIDEOS

ONESECHYPOTHESES

• IT IS POSSIBLE (FOR US - RIGHT NOW) TO CROWD FUND THE DEVELOPMENT OF AN IPHONE APP?

• IS THERE ANY INTEREST IN THE MARKET FOR THIS PRODUCT?

• HOW EFFICIENT IS OUR SOCIAL AND MARKETING REACH AND SKILLS?

• WHAT IS THE CONVERSION RATE FROM PUBLISHED STORIES ABOUT THIS?

https://www.youtube.com/watch?v=9Pj4HKCRA3E&feature=youtu.be

ONESEC - VIDEOS• THE APP SPOT

HTTP://YOUTU.BE/9PJ4HKCRA3E

• THE CAMPAIGN VIDEOHTTP://YOUTU.BE/TGSH8EBY-YS

• $ 25HTTP://YOUTU.BE/RR3MSVYNJW4

• $ 500 (WE SOLD ONE!)HTTP://YOUTU.BE/HUQ2CHZ7MK4

• $ 1.000HTTP://YOUTU.BE/UQN2KY9REPA

#FAIL

#WIN

ACQUIRED BY TWITTER IN OCTOBER 2012 FOR A REPORTED

$30 MILLION

IDEAS ARE

WORTHLESS

EXECUTION IS

EVERYTHING

STATS• ONLY 8%

OF GOAL REACHED

•GAZILLION HOURS WASTED

#FACEPALMIF WE WOULD HAVE INVOICED THE HOURS SPENT DOING CUSTOMER WORK INSTEAD OF RUNNING THIS CAMPAIGN WE WOULD HAVE MADE

10X OUR GOAL… BUT:MADE THE FRONTPAGE OF INDIEGOGO TECH CAMPAIGNS FEATURED ON INDIEGOGO BLOG FEATURED ON DVICE FEATURED ON TREND HUNTER FEATURED ON BUZZ PATROL FEATURED ON GADGET EXPLORER PETE HATES MUSIC LOVES ONESEC FEATURED ON MOBILE DEVICE RUSSIA AND MANY MORE…

TRY #2I GET INVITED TO STANFORD TO SPEAK ABOUT THE COLOGNE STARTUP SCENE

TO GET TAUGHT & TRAINEDBY STEVE BLANKAS A SCHOLARSHIPAND TO BRING BACK THE BEST STARTUP EDUCATION AVAILABLE TO COLOGNE, DE

HYPOTHESES• CAN I GET THE MAJORITY OF THE STARTUP SCENE

OF COLOGNE TO OWN A STAKE IN BRINGING BETTER ENTREPRENEURIAL EDUCATION TO COLOGNE?

• CAN I GET FRIENDS AND STRANGERS TO CO-INVEST AND SPLIT MY FLIGHT AND LIVING COSTS FOR THE? DURATION WITH ME?

• CAN I MAKE THIS A STORY BIGGER THAN MYSELF, ABOUT A LARGER GOAL?

• CAN I EMOTIONALIZE IT AND CONNECT WITH THE AUDIENCE?

HYPOTHESES• CAN I GET THE MAJORITY OF THE STARTUP SCENE

OF COLOGNE TO OWN A STAKE IN BRINGING BETTER ENTREPRENEURIAL EDUCATION TO COLOGNE?

• CAN I GET FRIENDS AND STRANGERS TO CO-INVEST AND SPLIT MY FLIGHT AND LIVING COSTS FOR THE? DURATION WITH ME?

• CAN I MAKE THIS A STORY BIGGER THAN MYSELF, ABOUT A LARGER GOAL?

• CAN I EMOTIONALIZE IT AND CONNECT WITH THE AUDIENCE?YES!

#EPICWIN

STATS•203,26% OF GOAL REACHED

• 12 HOURS TO MEET 100% GOAL

• RUNNING TIME 19 DAYS, 52 PLEDGERS

• 1,707 FACEBOOK LIKES, 243 TWEETS

• MADE INDIEGOGO GLOBAL HOMEPAGE

SO WHAT DID I LEARN?

ONESECHYPOTHESES

• IT IS POSSIBLE (FOR US & RIGHT NOW) TO CROWD FUND THE DEVELOPMENT OF AN IPHONE APP?

• IS THERE ANY INTEREST IN THE MARKET FOR THIS PRODUCT?

• HOW EFFICIENT IS OUR SOCIAL AND MARKETING REACH AND SKILLS?

• WHAT IS THE CONVERSION RATE FROM PUBLISHED STORIES ABOUT THIS?

NO!

YES!

HORRIBLE!

NON-EXISTING!

ONESECCONCLUSIONS

• WE FAILED TO EXPLAIN THE PRODUCT WELL ENOUGH

• WE FAILED TO MAKE AN EMOTIONAL CONNECT WITH POTENTIAL USERS AND BACKERS

• WE FAILED TO IDENTIFY THE TARGET USER SEGMENTS AND MULTIPLIER GROUPS

• WE FAILED WITH TONGUE-IN-CHEEK, NO-BUDGET STYLE WHEREAS MORE SUCCESSFUL CAMPAIGNS USE BETTER STORYTELLING AND POLISHED VIDEOS

TRY #2CONCLUSION

COLOGNE LOVES STARTUPS!

CONCLUSIONS• HAD A VERY CLEAR STORY

• HAD A VERY CLEAR “WHY” AND “BUY-IN”

• HAD A VERY CLEAR, LIMITED AUDIENCE

• HAD A “MODEST” GOAL

• TRANSPARENCY ON HOW EXACTLY THE MONEY WOULD BE USED

• HAD “SOCIAL PROOF”

• CLEARLY COMMUNICATED WHAT WOULD HAPPEN IF GOAL NOT REACHED

• PUSHED LIKE CRAZY - BEYOND UNCOMFORTABLE AND THEN SOME

LESSONS LEARNED

THINGS TO CONSIDER FOR YOUR CAMPAIGN

SHOW THE PRODUCT

• MAKE PEOPLE UNDERSTAND THE PRODUCT

• MAKE PEOPLE UNDERSTAND & FEEL WHY THEY WOULD WANT THE PRODUCT

FIND THE MULTIPLIERS• WE FAILED TO FIND THE GROUPS OF

PEOPLE AND CHANNELS OUTSIDE OF OUR FRIENDS, FAMILIES AND NETWORK OUTSIDE THE STARTUP WORLD WHO WOULD BE INTERESTED IN AND PASSIONATE ABOUT THE PROBLEM THE PRODUCT IS SOLVING

• ONCE WE HAD REACHED ALL OF OUR NETWORKS, THE CAMPAIGN STALLED

• DO THE RESEARCH UP-FRONT, TEST AND FIND THE COHORTS AND CHANNELS, THE PEOPLE WHO YOUR PRODUCT AND MESSAGE WILL RESONATE WITH BEFORE LAUNCHING

• HAVE AN ACTUAL PLAN ON WHO TO MARKET IT TO, WHERE THEY ARE AND HOW TO BEST REACH THEM

FIND THE MULTIPLIERS

STORYTELLING• HAVE A STORY TO TELL, CREATE ONE - YOU

NEED IT!

• ADD AS MUCH AS POSSIBLE TO THE STORY ABOUT “WHAT’S IN IT FOR ME” FOR THE USER, FOR THE BACKER: “ONLY YOU MAKE IT HAPPEN”

• “IF YOU HELP MAKE THIS HAPPEN, YOU WILL BE ABLE TO DO X AND Y”

• FOCUS ON THE EMOTIONAL APPEAL, THINK APPLE, THINK TITANIC

WHAT’S IN IT FOR ME

• EMOTIONALIZE IT

• MAKE THE BACKERS PART OF THE STORY / EXPERIENCE

• VISUALIZE IN IMAGES WHAT’S IN IT FOR THE BACKERS

• SHOW, DON’T TELL

INCLUDE THE BACKERS• REACH OUT TO THE PEOPLE WHO HAVE

ALREADY BACKED YOU

• PUBLISH THEIR STORY ABOUT WHY THEY BELIEVE IN YOU

• MAKE THE STORY ABOUT SOMETHING BIGGER THAN YOURSELF AND THE APP

• KEEP BUILDING YOUR SUCCESS NARRATIVE, YOUR STORY AS THE CAMPAIGN MOVES ALONG

CONSEQUENCES• CLEARLY COMMUNICATE WHAT IS GOING

TO HAPPEN IF YOU FAIL TO RAISE THE GOAL AMOUNT

• PAINT A PICTURE OF THE CONSEQUENCES, HOW POOR AND SAD THE KITTEN WILL BE

• EMOTIONALIZE IT

WHEN & HOW TO PUSH• REACH MORE THAN $ 1.000 PLEDGED

BEFORE PUSHING TO PRESS

• KEEP PUSHING PRESS ALTHOUGH THEY FIRST DON’T REACT

• KEEP IT UP AND PING PRESS ON ANY UPDATES

• KEEP BUILDING YOUR MOMENTUM STORY

TRICKS• PAY THE FIRST $ 1.000 YOURSELF, CONSIDER

THE PAYPAL FEE MARKETING EXPENSES

• USED PAID MARKETING TO TARGET YOUR AUDIENCE AND DRIVE TRAFFIC TO CAMPAIGN

• YOU CAN ACTUALLY EXTEND RUNNING TIME OF CAMPAIGN BY CONTACTING INDIEGOGO SUPPORT BY MAIL

SO YOU GOT FUNDED - NOW WHAT?

AFTERMATH• DELIVERING ON PERKS CAN BE A PAIN IN THE NECK AND A NASTY

FINANCIAL SURPRISE

• BE VERY CAREFUL ABOUT HOW MUCH YOUR PERKS ARE GOING TO COST IN TIME AND MATERIAL TO DELIVER AND CALCULATE ALL THIS IN ADVANCE, ADD TO AMOUNT YOU ARE RAISING IF NEEDED

• KEEP PLEDGERS INFORMED IN THE TIME (YES IT IS GOING TO TAKE MUCH LONGER THAN YOU THINK) IT TAKES FROM YOU CLOSE TO YOU CAN FULFILL ON YOUR PLEDGERS’ PERKS

• BEST CASE, USE ONLY PRODUCT OR DIFFERENT VERSIONS AND AMOUNTS OF ITSELF AS PERKS OR IF NON-PRODUCT ONLY PERKS THAT DON’T HAVE A LOT OF COST AND AFTERMATH LOGISTICS FOR YOU ATTACHED TO THEM

• ENCOURAGE PLEDGERS TO TAKE PICTURES OF DELIVERED PERKS AND SHARE THEM ON SOCIAL MEDIA - PICS OR IT DIDN’T HAPPEN!

SO YOU DID NOT GET FUNDED -

NOW WHAT?

SHIT HAPPENS - DON’T TAKE IT

PERSONAL

“NOTHING VENTURED, NOTHING GAINED”

LEARN, CHANGE, REPEAT

GOOD LUCK!TELL ME ABOUT YOUR CROWD FUNDING PROJECT

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