The world’s largest
crowdfunding platform!
Mars Best Practice Series
Amy Lesnick
Head of Social Innovation
amy@indiegogo.c...
Crowdfunding
What?
Who?
Where?
Why?
How?
Pooling of funds from the people
who are passionate
about an idea, leader, cause
One dollar at a time
Often in return for ...
Crowdfunding is not new…
Crowdfunding is not new…
Over $100,000 raised
Average contribution: $0.89
What is new…
You don’t need to be Pulitzer
Rise of social
networking
Adoption of
online
payments
24/7/365
Crowdfunding =
e...
Musician
Writer
Entrepreneur
Inventor
Small Business
Maker
Religious org
Artist
Community Activist
Photographer
Food lover...
Anyone, Anything,
Any time
Global
Keep what you raise
Gogo Factor
What makes us unique?
Since 2008
196 Countries
Over 100,...
1. Passion
2. Participation
3. Pride
4. Perks
Why do Funders Fund? - The 4 “P”s
1.  Raise Capital
2.  Increase Awareness
3.  Engage Community
as Stakeholders
4.  Validate Market
5.  Get Smarter faster
6...
How Are Social Innovators
Crowdfunding?
Launch/Ignite Seed/Scale Raise awareness
How Are Founders Crowdfunding?
Brand/Pre-sell Customer Design Fund production
.
How Are Funders using Crowdfunding?
CSR/Leverage Validate Market Community of support
.
$10,000
in matched funds by
How Are Funders using Crowdfunding?
Build Capacity of Grant Portfolio & Amplify Grant
.
Whole Foods Foundation Warner Brothers/Batman
How Are “Citizens” and Brands using
Crowdfunding?Over $2 million raised in H...
Partner Pages –Your own curated site
Innovation Prize Challenges &
Crowdfunding?
How Crowdfunding Works
1)  Create a campaign
2)  Engage your
community
3)  Raise funds
4)  Fulfill perks
So, what are the secrets of success?
q  Engaging Pitch
q  Compelling story/Specific objective
q  Attainable Goal
q  Un...
What problem are you trying to solve?
Why should I care?
What will happen if this continues to go unresolved?
Stats/Impact...
What specifically are you raising money for?
Pilot, first manufacturing, replication/scale?
Budget numbers? Matches or oth...
Creating a Great Pitch
More tips: http://support.indiegogo.com/entries/20353061-create-a-great-pitch
People contribute to ...
Written Description
Campaign Essentials
More tips: http://support.indiegogo.com/entries/20353061-create-a-great-pitch
§  ...
Goal Size
Reasonable goal: $15,000 to start manufacturing.
Goal Size
•  81% of campaigns that reach goal, exceed it by average of 32%
•  Probability of campaign reaching goal quadru...
Creating perks
More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-perk-pricing-practices.html
http://suppo...
Creating perks
Perk Ideas
28More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-perk-pricing-practices.html...
Creating perks
Show appreciation
More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-perk-pricing-practices...
Build a campaign “host committee”
Seek out communities that already exist
Audience that cares
More tips: http://support.in...
Communication
31More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
Communicat...
ü Soft launch
ü Creating an “Action Team" at the beginning of your
campaign.
ü Share with friends & family immediately ...
Communication
33More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
Have a wee...
Communication
34
Leverage updates to update funders
The Basics
• Sent at the end of the day to all funders and
“favorites”...
Communication
35
Use social media to engage
•  Ask questions
•  Recognize and thank
contributors
•  Do polls
•  Always inc...
Communication- Thank Social influencers
Identify, thank,
and engage key
influencers!
Communication- Innovate with your customers
Test a concept directly
with your customers.
Not just investment:
ENGAGEMENT.
...
Are you next?
$13,412
RAISED
Emmy’s Organics
FOOD
63
FUNDERS
$5,810
RAISED
Makepeace Brothers
MUSIC
114
FUNDERS
$7,281
RAISED
Walking Au...
amy@indiegogo.com
We’re looking forward to
working with all of you!
Crowdfunding Change: Tips and tricks for social innovators from Indiegogo - MaRS Best Practices
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Crowdfunding Change: Tips and tricks for social innovators from Indiegogo - MaRS Best Practices

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Are you a social entrepreneur with a vision for social change? A tech founder with a dream? A non-profit leader looking to engage your supporters as stakeholders?

If so, then you know what often stands between an innovative idea and its execution is financing!

With increasing frequency, crowdfunding has been filling the money gap―and it empowers action while raising awareness for issues. This platform enables individuals around the world to participate in big ideas and take ownership in the projects they believe in.

Amy Lesnick, Head of Social Innovation at Indiegogo, discusses how crowdfunding serves startups by helping entrepreneurs to:

-Demonstrate a market for their products
-Gain rapid customer feedback
-Cultivate customer advocates
-Increase awareness for their brand and offering

Join us to learn more about making crowdfunding work for you.

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Transcript of "Crowdfunding Change: Tips and tricks for social innovators from Indiegogo - MaRS Best Practices"

  1. 1. The world’s largest crowdfunding platform! Mars Best Practice Series Amy Lesnick Head of Social Innovation amy@indiegogo.com
  2. 2. Crowdfunding What? Who? Where? Why? How?
  3. 3. Pooling of funds from the people who are passionate about an idea, leader, cause One dollar at a time Often in return for a… “Perk” or Token of thanks Reaching into your community and Engaging their community What is Crowdfunding?
  4. 4. Crowdfunding is not new…
  5. 5. Crowdfunding is not new… Over $100,000 raised Average contribution: $0.89
  6. 6. What is new… You don’t need to be Pulitzer Rise of social networking Adoption of online payments 24/7/365 Crowdfunding = efficient + accessible + fun
  7. 7. Musician Writer Entrepreneur Inventor Small Business Maker Religious org Artist Community Activist Photographer Food lover Game Developer Non-profit Designer Dancer Who is crowdfunding?
  8. 8. Anyone, Anything, Any time Global Keep what you raise Gogo Factor What makes us unique? Since 2008 196 Countries Over 100,000 campaigns $ millions disbursed every week 60+ employees
  9. 9. 1. Passion 2. Participation 3. Pride 4. Perks Why do Funders Fund? - The 4 “P”s
  10. 10. 1.  Raise Capital 2.  Increase Awareness 3.  Engage Community as Stakeholders 4.  Validate Market 5.  Get Smarter faster 6.  Serendipity Why should you Crowdfund?
  11. 11. How Are Social Innovators Crowdfunding? Launch/Ignite Seed/Scale Raise awareness
  12. 12. How Are Founders Crowdfunding? Brand/Pre-sell Customer Design Fund production .
  13. 13. How Are Funders using Crowdfunding? CSR/Leverage Validate Market Community of support . $10,000 in matched funds by
  14. 14. How Are Funders using Crowdfunding? Build Capacity of Grant Portfolio & Amplify Grant .
  15. 15. Whole Foods Foundation Warner Brothers/Batman How Are “Citizens” and Brands using Crowdfunding?Over $2 million raised in Hurricane Sandy Relief; Over 160 campaigns .
  16. 16. Partner Pages –Your own curated site
  17. 17. Innovation Prize Challenges & Crowdfunding?
  18. 18. How Crowdfunding Works 1)  Create a campaign 2)  Engage your community 3)  Raise funds 4)  Fulfill perks
  19. 19. So, what are the secrets of success? q  Engaging Pitch q  Compelling story/Specific objective q  Attainable Goal q  Unique Perks q  Audience that cares q  Proactive Communication
  20. 20. What problem are you trying to solve? Why should I care? What will happen if this continues to go unresolved? Stats/Impact? How does this help me? Who are you? What is your vision? Why are you/your team uniquely suited to solve this? What is your solution? Why is it better than other solutions? Have you demonstrated effectiveness? What is the potential here? Creating a Great Pitch The keys to creating a good pitch are honesty, transparency and authenticity.
  21. 21. What specifically are you raising money for? Pilot, first manufacturing, replication/scale? Budget numbers? Matches or other funding sources? When will this happen? How will I know if we’re successful? If successful what happens next? Call to action What do you need from me? Why should I join with you? What are the cool benefits/perks if I do? What are other exciting engagement opportunities? Creating a Great Pitch
  22. 22. Creating a Great Pitch More tips: http://support.indiegogo.com/entries/20353061-create-a-great-pitch People contribute to a compelling story/people, not a product… Make it personal… Original Pitch Video Here: http://youtu.be/WdWZ8WVv6qk
  23. 23. Written Description Campaign Essentials More tips: http://support.indiegogo.com/entries/20353061-create-a-great-pitch §  1-3 min max §  Grab attention in first 30sec §  Campaigns with pitch video raise 114% more money Video Basics
  24. 24. Goal Size Reasonable goal: $15,000 to start manufacturing.
  25. 25. Goal Size •  81% of campaigns that reach goal, exceed it by average of 32% •  Probability of campaign reaching goal quadruples once reach 10%
  26. 26. Creating perks More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-perk-pricing-practices.html http://support.indiegogo.com/entries/20582388-great-perk-ideas §  Perks should be unique, creative, and personal. §  You can add up to 12 perks at one time. §  The average successful campaign has 5 – 8 perks. §  You can change/add perks throughout campaign §  Perks can be limited edition §  Watch for costs of fufillment Perks
  27. 27. Creating perks Perk Ideas 28More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-perk-pricing-practices.html http://support.indiegogo.com/entries/20582388-great-perk-ideas •  Offer early access to products/services •  Offer discounts or coupons •  Throw a party for funders •  Donated perks from local businesses •  Teach a class or host a tour •  Offer unique, limited edition items •  Free entry or membership discounts •  Personal thank you notes or phone call •  Share insider secrets •  Join the conversation
  28. 28. Creating perks Show appreciation More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-perk-pricing-practices.html http://support.indiegogo.com/entries/20582388-great-perk-ideas Pre-sell product Engage in design
  29. 29. Build a campaign “host committee” Seek out communities that already exist Audience that cares More tips: http://support.indiegogo.com/entries/20353061-create-a-great-pitch §  Raise 30-40% from inner circle within first 24-48 hours §  Consider soft launch Early $ matters
  30. 30. Communication 31More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html Communicate early & often §  Develop a social media/PR strategy §  Discuss updates, new perks, new media, milestones, etc. §  1-2 updates per week (60% of successful campaigns donors give twice; Campaigns that do 1-5 updates per week raise 2 times the money) §  Adding media to gallery post launch increases $ by 81%
  31. 31. ü Soft launch ü Creating an “Action Team" at the beginning of your campaign. ü Share with friends & family immediately – email everyone you know! Personalized emails result in highest contribution rate ü Update your email signature ü Once you gain traction, engage in a broader media push ü 20-30% of early funds should come from inner circle Communication 32More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html Engage Inner circle first
  32. 32. Communication 33More tips: http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html Have a weekly marketing plan
  33. 33. Communication 34 Leverage updates to update funders The Basics • Sent at the end of the day to all funders and “favorites” • Send 1-2 a week • Treat it like a blog • Engage your community What to Talk About • Specific perks (details, new additions) • Campaign developments/milestones • Media coverage • Organizational developments • Add new content • Make funders feel like they’re special, part of an exclusive community
  34. 34. Communication 35 Use social media to engage •  Ask questions •  Recognize and thank contributors •  Do polls •  Always include your campaign link •  Use hashtags •  Ask for retweets •  Whole team should tweet
  35. 35. Communication- Thank Social influencers Identify, thank, and engage key influencers!
  36. 36. Communication- Innovate with your customers Test a concept directly with your customers. Not just investment: ENGAGEMENT. These guys now have money, press, and a gang of evangelical customers who will spread WOM.
  37. 37. Are you next?
  38. 38. $13,412 RAISED Emmy’s Organics FOOD 63 FUNDERS $5,810 RAISED Makepeace Brothers MUSIC 114 FUNDERS $7,281 RAISED Walking Audio Tour COMMUNITY 69 FUNDERS $2,976 RAISED Design Junction SMALL BUSINESS 26 FUNDERS $4,062 RAISED Impossibly Funky MAGAZINE 80 FUNDERS Are you next?
  39. 39. amy@indiegogo.com We’re looking forward to working with all of you!

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