crowdfunding presentation - jan 21
DESCRIPTION
Slides from Crowdfunding presentation January 21st in MKTG 6226.TRANSCRIPT
Crowdsourcing Definition
“the act of an institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call.” – Jeff Howe
Crowdfunding Definition
“the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via theInternet.” – Forbes
How does it work?
Crowdfunding Platforms
Crowdfunding LegislationU.S.A.
O April 2012, Obama passed the JOBS Act
O Eased federal laws to encourage small business and startup funding
O Businesses can accept small contributions from citizens without making IPO
CANADAO Investment (equity)
model not legal inO No national securities
regulator (implemented at provincial level) then coordinated through CSA
O Gov’t wants to take a “wait-and-see” approach
Crowdfunding ModelsO Start-up equity crowdfunding. O Debt-based crowdfunding. O Good-cause crowdfunding. O Pre-order crowdfunding. O Rewards-based crowdfunding.
Start-Up Equity Crowdfunding
O This new model allows large numbers of “regular” people to invest small amounts online to fund early start-ups.
Debt-Based Crowdfunding
O Sometimes called micro-financing or peer-to-peer (P2P) lending:
O start-ups borrow money from a number of people online and pay them back after the project is finished.
O This model of funding not available in Canada.
Good-Cause Crowdfunding
O People invest (donate) money to a project that has good moral/ethical value. O Most companies using this model are not-for-profits.
Pre-Order Crowdfunding
O Investors make online pledges to pre-buy the product for later delivery (if it is ever built). O No financial return should be expected other than the product.
Rewards-Based Crowdfunding
O Investors get the satisfaction of helping, and immediately get a pre-determined reward or perk of value, such as a t-shirt, or other recognition.O This is a variation on the two previous ones, but there is no equity or finished product.
ACTIVITY TIME!
Live It!
“When you’re an entrepreneur, you don’t have a job--at least not in the conventional sense of that word. You have a calling. And unlike a job, a calling defines you as a person. It’s who you are.” – Arlene Dickinson
O Convey your idea clearly and quicklyO Quality is much more important than lengthO Match style to type of project
Campaign LengthO 30-60 days
Target AmountO Covers expensesO In line with expectations
Live Fundraising/PitchingO Meet & Greet / Demos
Rewards
Keys to RememberO Build your network before the campaignO Be flexible and responsiveO Know your media targetsO Integration