5.9 crowd funding, a new source of finance for innovation and sustainability
Upcoming SlideShare
Loading in...5
×
 

5.9 crowd funding, a new source of finance for innovation and sustainability

on

  • 142 views

 

Statistics

Views

Total Views
142
Views on SlideShare
142
Embed Views
0

Actions

Likes
0
Downloads
10
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    5.9 crowd funding, a new source of finance for innovation and sustainability 5.9 crowd funding, a new source of finance for innovation and sustainability Presentation Transcript

    • Vincenzo Butticè Politecnico di Milano / Management, Economics and Industrial Eng. Dept. Vincenzo Butticè Politecnico di Milano . Department of Management Economics and Industrial Engineering. Learning Network on Sustainability (EU asia-link) Learning Network on Sustainabile energy systems (EU edulink) course System Design for Sustainability (SDS) Crowdfunding, a new source of finance for innovation and sustainability
    • Vincenzo Butticè Politecnico di Milano / Management, Economics and Industrial Eng. Dept. CONTENTS WHAT IS CROWDFUNDING? Crowdfunding Models People Involved And Motivation Determinants of Success Regulation REWARDS BASED CROWDFUNDING Features How To Present a Campaign An Example: Kickstarter CASE STUDY A Successful Story An Unsuccessful Story . …
    • 1. WHAT IS CROWDFUNDING?
    • TRADITIONAL METHODS TO FINANCE A START-UP • FAMILY AND FRIENDS • BANK LOAN • BUSINESS ANGEL
    • CROWDFUNDING • Crowdfunding involves an open call, essentially through the Internet, for the provision of financial resources either in form of donation or in exchange for some form of reward and/or voting rights in order to support initiatives for specific purposes (Lambert and Schwienbacher , 2010)
    • THE EVOLUTION OF THE PHENOMENON
    • 1. WHAT IS CROWDFUNDING? • CROWDFUNDING MODELS
    • CROWDFUNDING MODELS DONATION-BASED: backers donate with no expectation of any kind of rewards, driven by philanthropic motivation. EQUITY-BASED: Investors receive equity in the company. LENDING-BASED: The entrepreneur or company borrows money and must repay it. REWARD-BASED: the proponents offer non monetary rewards in exchange for backers’ contribution.
    • DONATION-BASED CROWDUNDING DONATION-BASED: backers donate with no expectation of any kind of rewards, driven by philanthropic motivation. http://buonacausa.org/ http://buonacausa.org/cause/standup SOCIAL CHARITY THIS FUNDING METHOD IS THE EVOLUTION OF ONLINE FUNDRAISING < 10.000 $
    • REWARD-BASED CROWDUNDING REWARD-BASED: the proponents offer non monetary rewards in exchange for backers’ contribution. https://www.kickstarter.com/?ref=nav https://www.kickstarter.com/projects/600730948/th e-mwezi-light-made-in-africa-for-africa?ref=live CREATIVE NON-MONETARY REWARDS < 100.000 $
    • LENDING-BASED CROWDUNDING LENDING-BASED: The entrepreneur or company borrows money and must repay it. http://www.prosper.com/ https://www.thincats.com/Apps/WebObjects/thincats- pfp.woa/1/ra/Website/14624/14625/index.html SMALL BUSINESSES INTEREST AND REPAYMENT OF THE LOAN THIS FUNDING METHOD IS SLIGHTLY DIFFERENT FROM PEER TO PEER LENDING AND MICROFINANCE.
    • EQUITY-BASED CROWDUNDING EQUITY-BASED: Investors receive equity in the company https://www.seedrs.com/startups/glassup INNOVATIVE START UPS DIVIDEND THIS IS THE MOST CONTROVERSIAL CROWDFUNDING MODEL < 250.000 $
    • 1. WHAT IS CROWDFUNDING? • ACTORS AND MOTIVATION
    • ACTORS INVOLVED PROPONENT: submits to the crowd his idea BACKERS: finance worthy ideas CROWDFUNDING PLATFORM: creates the condition for collaboration
    • WHY PROJECT PROPONENTS CHOOSE CROWDFUNDING? Crowdfunding can be an useful alternative funding form Crowdfunding promotes the development of an ecosystem around the project. Crowdfunding increases the awareness of clients’ preferences Crowdfunding can be an engine for radical technological innovation
    • CHALLANGES FOR THE PROPONENTS CROWDFUNDING MAKES PUBLIC YOUR IDEAS TIME CONSUMING ACTIVITIES PEOPLE SEE YOUR FAILURE
    • WHY BACKERS PARTICIPATE IN A CROWDFUNDING CAMPAIGN? INTRINSIC MOTIVATION: driven by an interest or enjoyment in the task itself. EXTRINSIC MOTIVATION: refers to the performance of an activity in order to attain an outcome.
    • TAXONOMY OF THE BACKERS FOR PROFIT BACKERS: receive equity for their money EARLY ADOPTERS: customers who pre- order a product SOCIAL BACKERS: people interested in being part of a community CULTURAL BACKERS: philanthropists who don’t expect any kind of rewards
    • CROWDFUNDING PLATFORMS MATCHING MARKET-PLACE ALL OR NOTHING: pledged money is only collected if the fundraising goal is met. If the goal is not met, no money is collected. KEEP IT ALL: even if the target capital is not reached, the entrepreneurs receive the money.
    • 1. WHAT IS CROWDFUNDING? • DETERMINANTS OF SUCCESS
    • DETERMINANTS OF SUCCESS SOCIAL CAPITAL: number and strength of ties PROJECT QUALITY EARLY STAGE FUNDING THE INVESTMENT PATTERNS ARE INDEPENDENT FROM GEOGRAPHICAL DISTANCE
    • 1. WHAT IS CROWDFUNDING? • THE REGULATION
    • THE REGULATION TIME LINE
    • 1. THE REWARD-BASED MODEL • FEATURES
    • REWARDS BASED CROWDFUNDING REWARD BASED CROWDFUNDING IS THE MAINLY ADOPTED CROWDFUNDING MODEL HIGHEST SUCCESS RATE RELATIVELY LOW RISKS LOW COMPLEXITY AND UNCERTAINTY
    • MINIMUM REQUIREMENTS PROJECT DESCRIPTION REWARDS PROPONENT’S INFORMATION VIDEO
    • 1. THE REWARD-BASED MODEL • HOW TO PRESENT A CROWDFUNDING CAMPAIGN
    • HOW TO PRESENT A FUNDING CAMPAIGN PRELIMINARY STEPS DESIGN YOUR CAMPAIGN FOLLOW YOUR CAMPAIGN SUBMIT YOUR PROJECT
    • HOW TO PRESENT A FUNDING CAMPAIGN PRELIMINARY STEPS: HAVE A GOOD IDEA EVALUATE ECONOMICALLY YOUR IDEA PREPARE A BUDGET ENGAGE PEOPLE AROUND THE PROJECT IMPROVE YOUR REPUTATION
    • HOW TO PRESENT A FUNDING CAMPAIGN DESIGN YOUR CAMPAIGN: DESCRIBE YOUR IDEA PREPARE A VIDEO DEFINE REWARDS PREPARE A COMPLETE CV
    • HOW TO PRESENT A FUNDING CAMPAIGN PROPOSE YOUR FUNDING CAMPAIGN FOLLOW YOUR CAMPAIGN: ANSWER QUESTIONS AND PROVIDE ADJOURNMENTS PROMOTE YOUR PROJECT INVOLVE YOUR SOCIAL NETWORK
    • 1. THE REWARD-BASED MODEL • AN EXAMPLE: KICKSTARTER
    • AN EXAMPLE OF A REWARD-BASED PLATFORM: KICKSTARTER GENERALIST CROWDFUNDING PLATFORM HELP BRING CREATIVE PROJECTS TO LIFE
    • Rank Total USD Project name Creator Category % funded Backers 1 10,266,845 Pebble: E- Paper Watch for iPhone and Android Pebble Technology Design 10,266 68,928 2 8,596,474 Ouya: A New Kind of Video Game Console Ouya Inc. Video Games 905 63,416 3 5,702,153 Veronica Mars movie Rob Thomas Film & Video 285 91,585 KICKSTARTER RECORDS
    • https://www.youtube.com/watch?feature=player_embedded&v=008ZofyIRHo
    • https://www.youtube.com/watch?v=nSScO6Vh7ug#t=129
    • KICKSTARTER https://www.kickstarter.com/
    • 1. A CASE STUDY
    • A SUCCESSFUL PROJECT HTTPS://WWW.KICKSTARTER.COM/PROJECTS/WAKAWAKALIGHT/WAKAWAKA-POWER-THE-BEST- COMPACT-SOLAR-POWER-STATIO?REF=LIVE
    • AN UNSUCCESSFUL PROJECT https://www.kickstarter.com/projects/600730948/the-mwezi-light-made-in-africa-for-africa?ref=live
    • DIFFERENCES BETWEEN THE CASES PROJECT DESCRIPTION INTERNAL AND EXTERNAL SOCIAL CAPITAL INFORMATION PROVIDED COMMENTS AND ADJOURNMENTS REWARDS
    • A SHORT SUMMARY