Reward based Crowdfunding


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A small notes on Reward based crowdfunding

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Reward based Crowdfunding

  1. 1. Faysal Ahmed Co-Founder, Team 71 Software Engineer, TigerIT Limited Reward based crowdfunding
  2. 2. Crowd Funding  finance from backer  "crowd“  fund an initiative and usually occurs on Internet platforms  could be a nonprofit, political, charitable, commercial  Financial campaign for a startup company  Example: kickstarter and indiegogo
  3. 3.  people or organizations that propose the ideas and/or projects to be funded,  the crowd of people who support the proposals  Crowdfunding is then supported by an organization (the "platform") which brings together the project initiator and the crowd
  4. 4. Gamers as crowdfunders  Gamers are tech savvy and have been early adopters of crowdfunding platforms,  using them to fund ideas for new games and peripherals  Crowdfunders of gaming don't expect a return on their money  are glad to help promote programmers working on cool projects.
  5. 5. Type of crowdfunding  Reward based  Equity based  Donation based  Credit based
  6. 6. Reward based crowdfunding  a source of funding for small businesses.  looking for funding up on a crowdfunding portal,  targeting a certain amount capital to raise.  gives some type of incentive for participating
  7. 7.  by the end of 2013:  People pledged $928 million to projects on Kickstarter  54,233 projects have been funded successfully  5.4 million people have backed projects  1.58 million people have backed more than 1 project  12.8 million total pledges have been made  Consulting firm, Deloitte estimated over $700 million would trade hands on rewards-based crowdfunding platforms.
  8. 8. How rewards-based crowdfunding works  Business or entrepreneur posts a project available for funding up on a crowdfunding platform with a set deadline  special promotional videos are produced to help get backers interested in the project.  In return for backing a project, backers receive different rewards depending on the amount of funding they commit (defined by the business or entrepreneur behind the project)
  9. 9.  Business and other supporters of the projects share the project with friends and family  Interested backers donate during the project, sharing their activities over social networks  If funding targets are hit before the project's deadline, the deal "tilts" and monies are exchanged, rewards are committed  Typically, within the months following a successful project funding, backers receive their rewards (though research shows many of the rewards are late in their delivery)
  10. 10. Examples of crowdfunding projects  Star Citizen, $35 million (video game)  Ubuntu Edge, $19 million (smart phone)  Pebble (watch)