CROWDFUNDING
has arrived!
Propel Arizona – CJ Cornell @PropelArizona @cjcornell
Crowdfunding
•What is Crowdfunding? Fact vs Fiction.
•How does it work? & Why does it work?
•How can we use crowdfunding?
...
CJ Cornell is ...
First, let’s talk about …
Entrepreneurship
&
Arizona
1
#
AZ Entrepreneurship
10
top
Places to do business …
46th in the U.S.A.
venture capital, equity investing
We’re Great at
Starting up
(planting Seeds) **
** and just AWFUL at outcomes –
quality, scale, wealth & economic growth …
WE‟RE NOT THE ONLY
ONES …
** (fostering entrepreneurial success is hard)
concept
IPO (market share,
revenues etc )
Product
(Risk, growth)
Entrepreneurial Growth
concept->product->market->profit
$...
Starting a company
is easier than ever …
… but growing a company is
harder & riskier than ever …
The Series-A Crunch
Crowdfunding
Crowdfunding
concept
IPO (market share,
revenues etc )
Product
(Risk, growth)
Entrepreneurial Growth
concept-...
What is Crowdfunding ?
The safety of crowds
The passion of crowds
The wisdom of the crowds
Crowdfunding
Source: http://theyec.org/making-sense-of-the-jobs-act-and-crowdfunding-infographic/
• Source – http;//crowdfunder.com
• Source – http;//crowdfunder.com
0
Equity (investment)
crowdfunding in US
cases
2015
Equity crowdfunding practical in US
0
FRAUD
cases
• Equity Crowdfunding - not in the USA (yet)
• JOBS act (April 2012) technically enables CF – but has
not yet been approve...
Rewards based,
“contribution”
crowdfunding
The Kickstarter model –
„donations‟
“THE KICKSTARTER MODEL”
Rewards-based, Donation Crowdfunding:
ALL OR NOTHING
Perks &
Rewards
Updates (and Blogging)
Updates (and Blogging)
Comments & Engagement
Kickstarter (2012)
2.2 million people pledged a total of
$319,786,629
(up 221% from 2011)
Backers pledged $606.76 per minu...
Source: http://KickstartersHQ.com
WHY …
Do people Crowdfund?
Lessons from Ethan Mollick‟s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
3 Why’s: 1. They connect to the greater
purpose of the campaign
2. They connect to a physical
aspect of the campaign like ...
The Real
(Crowdfunding)
Why’s
• Passion
– For the technology
– For the industry
– For the cause
– For the product
• Affini...
emotional ROI.
Not financial ROI
WYNTK(what you need to know)
Crowdfunding is about …
(when crowdfunding …)
“its not what you do,
but why you do it,”
WYNTK(what you need to know)
http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-
multi-touch-watch-kits
http://trendwatching.com/trends/infographics/presumers/
“Consumers who want products before they are
developed”
Pre-orders...
UH OH …
The Kickstart Model..
1. Crowdfunding = New “1st Money” for ventures
($10k - $50k average– but wild exceptions)
2. Equity Crowdfunding is Still ...
What does success
look like?
• The iPhone-friendly Pebble watch earned $7.6
million more than its $100,000 goal.
• And the Galileo iPhone platform clos...
• Ouya raised $2 million in one day for a new Android gaming
console (it’s raised more than $5 million to date),
• the Nif...
What do successful
campaigns have in
common?
http://www.kickstarter.com/projects/hop/ele
vation-dock-the-best-dock-for-iphone
Projectio
http://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector
http://www.kickstarter.com/projects/mikebond/ti2-sentinel-titanium-cache?ref=home_popular
http://www.kickstarter.com/projects/poots/kingdom-death-
monster?ref=home_popular
http://www.kickstarter.com/projects/smartthings/smartthings-make-your-
world-smarter?ref=category
http://www.kickstarter.com/projects/thejumpshot/jumpshot-a-new-weapon-to-
battle-pc-frustration?ref=category
http://trendwatching.com/trends/infographics/presumers/
Successful campaigns took an average
11 days preparing for their launch.
http://blog.indiegogo.com/2013/01/12-insights-for...
Campaigns ran an average 49 days in
2012, as opposed to 60 in 2011.
Successful campaigns fundraised for
39 days.
Crowdfunding Myths & Mistakes
• Myth #1: If You Build It, They Will Come
• Myth #2: Cash is Free
• Making it about you
• U...
www.propelarizona.com
WYNTK(what you need to know)
Successful Crowdfunding
Campaigns Focus on
The new 4 P’s …
the
1.
the
2...
focus on “them” –
not your company
WHO are they?
What motivates them?
Interests, Values …
the
1.
The new 4 P’s of
Crowdfun...
Crafting a
Successful
Crowdfunding Campaign
Some initial rules ….
1. Crowdfunding takes work, new skills.
2. It takes a strategy, and preparation.
3. The rules are different.
4. You can’t ...
Components
of a
Crowdfunding Campaign
 Title & Short Description
• (repeatable & compelling)
 Long Description (“The Pitch”)
• Make it a story … about “them”
...
Crafting the “Pitch”
First: Who What Why When …
• The 3 Who’s:
– Who are the donors? (affinity & passion)
– Who is benefits? (the market)
– Who...
First: Who What Why When …
• What is your project & goal?
– Understandable & Simple
– Compelling & Intriguing
– Repeatable...
Other Tips
• Tell a story
• Make it about them
• The History of the idea is intriguing
• What is the Impact? – why is this...
Exercise –
Craft the Pitch
Crafting your Pitch
Title & Short Description
•(repeatable & compelling)
Long Description (“The Pitch”)
•Make it a story...
Pitch Notes - 1
• Who (donors, market)
• “Why” – the story
• Impact (on the market)
• Impact (on the donors)
Pitch Notes - 2
• Story, and History …
• FAQ
• Perk Ideas (what’s important to donors)
• Calls to Action
Visuals
The Importance of Visual Media
• 64% of successful campaigns in had pitch videos.
• Campaigns with videos under 5 minutes ...
Perks & Rewards
Directed by
Patrick Million
Executive Producer
CJ Cornell
a Patrick Million FILM
American Grandmaster
Rewards Crowdfunding
• Incentives & perks
• Pre-Orders
• Pre-Sumers
• Market Validation
Rewards don’t have to worth $$
• $25 perk is the single most claimed perk,
representing nearly 25% of all perks that are
selected.
• While the $25 dollar...
• $100 perks raise more money than any other
perk price and make up nearly 30% of total
funds. A $100 perk combined with t...
some
Rules for Rewards
1. Make perks unique &
exclusive
Avoid T-shirts, Mugs & Hugs
2. Target them
3. Give them a
connection
“The
Cocktail Party
Effect”
“The
Restaurant
Effect”
“The
Carey School
Effect”
The less tangible the perk,
the more public (visible) &
EXCLUSIVE it needs to be.
The Campaign
How much $$ ?
How long?
Discussion
• How much should we raise?
– Have you raised money before? Return?
– Do you/did you work at a highly visible p...
HOW to Crowdfund?
PUSH - Running the campaign
• Social Media
• Comments & Updates
• Networking
• Personal Pitches
Your mission: To get
them talking about
your project
Now that you’ve launched …
Continue the story
Social Engagement
– Transparency & Trust
– Social Proof & Viral FX
– Engagement & “The Fundamentals”
– Twitter
– Facebook
...
most successful projects receive about
25-40% of their revenue from their
first, second and third degree of
connections.
T...
1. Create: (of course)
- A Facebook Account
- A Twitter Account
(for your campaign)
2. Tweet & Post
–Frequently
–Uniquely
–Personally
3. Post Updates & Blog
•About your progress
•About the subject
•About the industry
•About the People
4. Go 1-1
•Reply to comments
•Retweet/Repost
Your fans and donors are your most
powerful advocates!
5. Target, Measure & Adjust
•Different Messages for different
groups
•Google, Hootsuite, others
•Learn and Adjust focus
Metrics
http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
Metrics
http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
the importance of google analytics to track
and improve performance
• + perks from fivvr
•
• http://www.perlsteinlab.com/b...
Campaign Checkist
Social Media
Create a schedule 2-5x / week
Use an automated tool
Eg Hootsuite
Post interesting info ...
Success Factors
http://online.wsj.com/article/SB100008723963904438558045776010130940
84438.html?mod=googlenews_wsj#articleTabs%3Darticle
http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more-
money-th...
http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more-
money-th...
http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
successful campaigns raise, on average, 49%
percent of their goals during the first and
last 10% of the campaign length.
The most important
secret is …
Showing Momentum
(the perception of momentum)
The most obvious
secret is …
Credibility
= trust, competence
& follow-through
www.propelarizona.com
Crowdfunding
Entrepreneurship & Innovation
Arizona Economic Growth
Practical
Crowdfunding
Workshop
www.propelarizona.com
@PropelArizona
Slideshare/PropelArizona
days
Crowdfunding is measured in …
Entrepreneurship
Crowdfunding Arizona
Can it jumpstart entrepreneurship?
1. Kickstarter “Fails”
Arizona does poorly …
2. Members =/ Supporters
% of supporters is the key ….
3. Entrepreneurship is Different
Products, Companies, Entrepreneurs
…
4. The role of “Ecosystem”
Incubators, accelerators, mentors etc ..
5. The power of Community
Shared Goals, Passions, Outcomes …
Shared Goals, Passions, Outcomes …
Crowdfunding for Entrepreneurship & Economic Growth
Shared Goals, Passions, Outcomes …
People as Important as Projects …
Organizations & Affiliations …
Entrepreneurs success as much as funding …
$15k - $100k *(Average $50k) ….
Crowdfunding for Entrepreneurship & Economic Growth
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library
Upcoming SlideShare
Loading in...5
×

Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library

522

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
522
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Thanks to www.presentationmagazine.com For the template
  • In 2012 - Arizona had the HIGHEST level Entrepreneurial Growth
  • In 2012 - Arizona had the HIGHEST level Entrepreneurial Growth
  • Also: #1 student venture, top-10 places to start a business
  • In 2012 - Arizona had the HIGHEST level Entrepreneurial Growth
  • In 2012 - Arizona had the HIGHEST level Entrepreneurial Growth
  • Thanks to www.presentationmagazine.com For the template
  • ** Phoenix Business Journal, SJ Bus Journal
  • Gogetfunding.com
  • Also: #1 student venture, top-10 places to start a business
  • Also: #1 student venture, top-10 places to start a business
  • Also: #1 student venture, top-10 places to start a business
  • Also: #1 student venture, top-10 places to start a business
  • People – who, the target(s) niches … why … what is important to themPitch – cool, intriguiing, MAKES THEM WANT to BE A PART OF YOUR JOURNEY! AND GET OTHERS TO JOIN!
  • Also: #1 student venture, top-10 places to start a business
  • Also: #1 student venture, top-10 places to start a business
  • Crowdfunding Overview (Propel Arizona) - for Eureka Loft Scottsdale Library

    1. 1. CROWDFUNDING has arrived! Propel Arizona – CJ Cornell @PropelArizona @cjcornell
    2. 2. Crowdfunding •What is Crowdfunding? Fact vs Fiction. •How does it work? & Why does it work? •How can we use crowdfunding? •Success & benefits: For entrepreneurs & communities Beyond the headlines and hype: How can crowdfunding help our economy?
    3. 3. CJ Cornell is ...
    4. 4. First, let’s talk about … Entrepreneurship & Arizona
    5. 5. 1 # AZ Entrepreneurship
    6. 6. 10 top Places to do business …
    7. 7. 46th in the U.S.A. venture capital, equity investing
    8. 8. We’re Great at Starting up (planting Seeds) ** ** and just AWFUL at outcomes – quality, scale, wealth & economic growth …
    9. 9. WE‟RE NOT THE ONLY ONES … ** (fostering entrepreneurial success is hard)
    10. 10. concept IPO (market share, revenues etc ) Product (Risk, growth) Entrepreneurial Growth concept->product->market->profit $ $ $ $ Venture Capital Angels (accelerators/incubators)
    11. 11. Starting a company is easier than ever … … but growing a company is harder & riskier than ever …
    12. 12. The Series-A Crunch
    13. 13. Crowdfunding Crowdfunding concept IPO (market share, revenues etc ) Product (Risk, growth) Entrepreneurial Growth concept->product->market->profit $ $ $ $ Venture Capital Angels (accelerators/incubators) Crowdfunding Crowdfunding
    14. 14. What is Crowdfunding ?
    15. 15. The safety of crowds The passion of crowds The wisdom of the crowds Crowdfunding
    16. 16. Source: http://theyec.org/making-sense-of-the-jobs-act-and-crowdfunding-infographic/
    17. 17. • Source – http;//crowdfunder.com
    18. 18. • Source – http;//crowdfunder.com
    19. 19. 0 Equity (investment) crowdfunding in US cases
    20. 20. 2015 Equity crowdfunding practical in US
    21. 21. 0 FRAUD cases
    22. 22. • Equity Crowdfunding - not in the USA (yet) • JOBS act (April 2012) technically enables CF – but has not yet been approved by SEC. • No documented fraud in USA or other areas. • Equity CF is for “high growth companies” seeking significant funding from experienced investors • Will dramatically change in 3-5 years (CJ prediction) www.propelarizona.com WYNTK(what you need to know)
    23. 23. Rewards based, “contribution” crowdfunding The Kickstarter model – „donations‟
    24. 24. “THE KICKSTARTER MODEL” Rewards-based, Donation Crowdfunding:
    25. 25. ALL OR NOTHING
    26. 26. Perks & Rewards
    27. 27. Updates (and Blogging)
    28. 28. Updates (and Blogging)
    29. 29. Comments & Engagement
    30. 30. Kickstarter (2012) 2.2 million people pledged a total of $319,786,629 (up 221% from 2011) Backers pledged $606.76 per minute People in 177 countries backed a project in 2012 (That's 90% of the countriesin the world)
    31. 31. Source: http://KickstartersHQ.com
    32. 32. WHY … Do people Crowdfund?
    33. 33. Lessons from Ethan Mollick‟s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
    34. 34. 3 Why’s: 1. They connect to the greater purpose of the campaign 2. They connect to a physical aspect of the campaign like the rewards 3. They connect to the creative display of the campaign’s presentation three main reasons why people unconnected to a project or business would support it: What Is Crowdfunding And How Does It Benefit The Economy - Forbes http://www.forbes.com/sites/tanyaprive/2012/11/27/what-is-crowdfunding-and-how-does-it-benefit-the-economy
    35. 35. The Real (Crowdfunding) Why’s • Passion – For the technology – For the industry – For the cause – For the product • Affinity – For the Entrepreneur – For the region, industry etc • Connection • Every reason BUT R.O.I. …
    36. 36. emotional ROI. Not financial ROI WYNTK(what you need to know) Crowdfunding is about …
    37. 37. (when crowdfunding …) “its not what you do, but why you do it,” WYNTK(what you need to know)
    38. 38. http://www.kickstarter.com/projects/1104350651/tiktok-lunatik- multi-touch-watch-kits
    39. 39. http://trendwatching.com/trends/infographics/presumers/ “Consumers who want products before they are developed” Pre-orders Early adopters Supporters
    40. 40. UH OH … The Kickstart Model..
    41. 41. 1. Crowdfunding = New “1st Money” for ventures ($10k - $50k average– but wild exceptions) 2. Equity Crowdfunding is Still Far away 3. Rewards based Model IS Crowdfunding today 4. All or Nothing Crowdfunding – Standard 5. Perks and Rewards: Pre-order Crowdfunding 6. Social Media & Content Intensive www.propelarizona.com WYNTK(what you need to know)
    42. 42. What does success look like?
    43. 43. • The iPhone-friendly Pebble watch earned $7.6 million more than its $100,000 goal. • And the Galileo iPhone platform closed its Kickstarter campaign at $702,000, far surpassing its $100,000 goal.
    44. 44. • Ouya raised $2 million in one day for a new Android gaming console (it’s raised more than $5 million to date), • the Nifty MiniDrive, external memory for Apple MacBooks. The tiny storage company is more than 2,000% above its $11,000 goal with 15 days left in the campaign.
    45. 45. What do successful campaigns have in common?
    46. 46. http://www.kickstarter.com/projects/hop/ele vation-dock-the-best-dock-for-iphone
    47. 47. Projectio http://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector
    48. 48. http://www.kickstarter.com/projects/mikebond/ti2-sentinel-titanium-cache?ref=home_popular
    49. 49. http://www.kickstarter.com/projects/poots/kingdom-death- monster?ref=home_popular
    50. 50. http://www.kickstarter.com/projects/smartthings/smartthings-make-your- world-smarter?ref=category
    51. 51. http://www.kickstarter.com/projects/thejumpshot/jumpshot-a-new-weapon-to- battle-pc-frustration?ref=category
    52. 52. http://trendwatching.com/trends/infographics/presumers/
    53. 53. Successful campaigns took an average 11 days preparing for their launch. http://blog.indiegogo.com/2013/01/12-insights-for-2012.html
    54. 54. Campaigns ran an average 49 days in 2012, as opposed to 60 in 2011. Successful campaigns fundraised for 39 days.
    55. 55. Crowdfunding Myths & Mistakes • Myth #1: If You Build It, They Will Come • Myth #2: Cash is Free • Making it about you • Unrealistic Expectations • Lack of clarity • No call to action • Expecting to be found: (No Marketing) • Ignoring Small Donations/Donors http://kickstartershq.com/articles/5-project-crushing-kickstarter-mistakes-how-to-avoid-them http://www.crowdsourcing.org/document/3-big-crowdfunding-myths-via-funderhut/23804
    56. 56. www.propelarizona.com WYNTK(what you need to know) Successful Crowdfunding Campaigns Focus on The new 4 P’s … the 1. the 2. the 4. the 3.
    57. 57. focus on “them” – not your company WHO are they? What motivates them? Interests, Values … the 1. The new 4 P’s of Crowdfunding .. www.propelarizona.com the 2. You are pitching to “them” TELL A STORY !! WHY is more important than $$ VIDEO(s) & VISUAL(s) Tell the story in small „chapters‟ VIDEO(s) & VISUAL(s) And even smaller “sound bites” Give them a Story they can tell to others. the 3. $$ Value is a negative driver ! UNIQUE It‟s about THEM EXCLUSIVE And what is important to “Them” FIRST Make sure it is … BUZZWORTHY the 4.It‟s a daily/hourly effort … SOCIAL MEDIA It‟s a conversation … UPDATES, BLOGS, NEWS Provide Value, and Talking Points RE-POST, TWEETable It‟s about … for their network VALIDATION & EVIDENCE
    58. 58. Crafting a Successful Crowdfunding Campaign
    59. 59. Some initial rules ….
    60. 60. 1. Crowdfunding takes work, new skills. 2. It takes a strategy, and preparation. 3. The rules are different. 4. You can’t just post and run … 5. It’s a public success or failure – that “stays on your resume” www.propelarizona.com WYNTK(what you need to know)
    61. 61. Components of a Crowdfunding Campaign
    62. 62.  Title & Short Description • (repeatable & compelling)  Long Description (“The Pitch”) • Make it a story … about “them”  Visuals: Video, Photos, Images  Team, Deliverables, Details  Perks & rewards  Funding Goals: Amount and Timeframe  Updates & SOCIAL MEDIA CAMPAIGN • Repeatable Messages • Daily “routine” • Traditional marketing too
    63. 63. Crafting the “Pitch”
    64. 64. First: Who What Why When … • The 3 Who’s: – Who are the donors? (affinity & passion) – Who is benefits? (the market) – Who are you? • The 3 Why’s – Why would your donors care? – Why does the market care? – Why are you the right team to do it?
    65. 65. First: Who What Why When … • What is your project & goal? – Understandable & Simple – Compelling & Intriguing – Repeatable & Memorable • How and When – How will you achieve your goal? Realistic? – When, after funding? When will I get my perks?
    66. 66. Other Tips • Tell a story • Make it about them • The History of the idea is intriguing • What is the Impact? – why is this important? • Try a FAQ • Call to action – get them involved!
    67. 67. Exercise – Craft the Pitch
    68. 68. Crafting your Pitch Title & Short Description •(repeatable & compelling) Long Description (“The Pitch”) •Make it a story … about “them” Visuals: Video, Photos, Images Team, Deliverables, Details Perks & rewards Funding Goals: Amount and Timeframe Updates & SOCIAL MEDIA CAMPAIGN •Repeatable Messages •Daily “routine” •Traditional marketing too Tell a story Make it about them The History of the idea is intriguing What is the Impact? Why is this important? Try a FAQ Call to action – get them involved! The 3 Who’s: Who are the donors? (affinity & passion) Who is benefits? (the market) Who are you? The 3 Why’s Why would your donors care? Why does the market care? Why are you the right team to do it? What is your project & goal? Understandable & Simple Compelling & Intriguing Repeatable & Memorable How and When How will you achieve your goal? Realistic? When, after funding? When will I get my perks?
    69. 69. Pitch Notes - 1 • Who (donors, market) • “Why” – the story • Impact (on the market) • Impact (on the donors)
    70. 70. Pitch Notes - 2 • Story, and History … • FAQ • Perk Ideas (what’s important to donors) • Calls to Action
    71. 71. Visuals
    72. 72. The Importance of Visual Media • 64% of successful campaigns in had pitch videos. • Campaigns with videos under 5 minutes were 25% more likely to reach their goal than those with videos that were longer. • Average campaign video length for campaigns was 3 min, 27 seconds. Campaigns that reach their goal are 16 seconds shorter. • On average, successful campaigns uploaded 6 media to their gallery. • http://blog.indiegogo.com/2013/01/12-insights-for-2012.html
    73. 73. Perks & Rewards
    74. 74. Directed by Patrick Million Executive Producer CJ Cornell a Patrick Million FILM American Grandmaster
    75. 75. Rewards Crowdfunding • Incentives & perks • Pre-Orders • Pre-Sumers • Market Validation
    76. 76. Rewards don’t have to worth $$
    77. 77. • $25 perk is the single most claimed perk, representing nearly 25% of all perks that are selected. • While the $25 dollar perk is only responsible for raising 11% of total funds.
    78. 78. • $100 perks raise more money than any other perk price and make up nearly 30% of total funds. A $100 perk combined with the next three perk price points: $50, $500, and $1000 makes up about 70% of total money raised by perks
    79. 79. some Rules for Rewards
    80. 80. 1. Make perks unique & exclusive Avoid T-shirts, Mugs & Hugs
    81. 81. 2. Target them
    82. 82. 3. Give them a connection
    83. 83. “The Cocktail Party Effect”
    84. 84. “The Restaurant Effect”
    85. 85. “The Carey School Effect”
    86. 86. The less tangible the perk, the more public (visible) & EXCLUSIVE it needs to be.
    87. 87. The Campaign
    88. 88. How much $$ ? How long?
    89. 89. Discussion • How much should we raise? – Have you raised money before? Return? – Do you/did you work at a highly visible position? – *** Your social network? Large? Followers? – Idea - big market? How unique? – How much (marketing) work will you do?
    90. 90. HOW to Crowdfund? PUSH - Running the campaign • Social Media • Comments & Updates • Networking • Personal Pitches
    91. 91. Your mission: To get them talking about your project
    92. 92. Now that you’ve launched … Continue the story
    93. 93. Social Engagement – Transparency & Trust – Social Proof & Viral FX – Engagement & “The Fundamentals” – Twitter – Facebook – Blogging
    94. 94. most successful projects receive about 25-40% of their revenue from their first, second and third degree of connections. This could include friends, family, work acquaintances, or anyone that the owner is connected to. • http://www.forbes.com/sites/tanyaprive/2012/11/27/what-is-crowdfunding-and-how-does-it-benefit-the-economy/
    95. 95. 1. Create: (of course) - A Facebook Account - A Twitter Account (for your campaign)
    96. 96. 2. Tweet & Post –Frequently –Uniquely –Personally
    97. 97. 3. Post Updates & Blog •About your progress •About the subject •About the industry •About the People
    98. 98. 4. Go 1-1 •Reply to comments •Retweet/Repost Your fans and donors are your most powerful advocates!
    99. 99. 5. Target, Measure & Adjust •Different Messages for different groups •Google, Hootsuite, others •Learn and Adjust focus
    100. 100. Metrics http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
    101. 101. Metrics http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
    102. 102. the importance of google analytics to track and improve performance • + perks from fivvr • • http://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and- steady
    103. 103. Campaign Checkist Social Media Create a schedule 2-5x / week Use an automated tool Eg Hootsuite Post interesting info – Not just pleas for money Not just updates Vary your targets Call to action 1/3-1/2 time Use analytics and other metrics Traditional Marketing Pitch Events Press Releases Demos Testamonials Use an automated tool What to Communicate: 1. Your Progress 2. Successes, Evidence of success 3. Ammunition for your supporters 4. Industry Info, Factoids 5. People Info Plan, Schedule & Update Your Social Network is a Force Multiplier – but you have to give them help.
    104. 104. Success Factors
    105. 105. http://online.wsj.com/article/SB100008723963904438558045776010130940 84438.html?mod=googlenews_wsj#articleTabs%3Darticle
    106. 106. http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more- money-than-campaigns-that-dont.html
    107. 107. http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more- money-than-campaigns-that-dont.html
    108. 108. http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
    109. 109. successful campaigns raise, on average, 49% percent of their goals during the first and last 10% of the campaign length.
    110. 110. The most important secret is …
    111. 111. Showing Momentum (the perception of momentum)
    112. 112. The most obvious secret is …
    113. 113. Credibility = trust, competence & follow-through
    114. 114. www.propelarizona.com Crowdfunding Entrepreneurship & Innovation Arizona Economic Growth
    115. 115. Practical Crowdfunding Workshop www.propelarizona.com @PropelArizona Slideshare/PropelArizona
    116. 116. days Crowdfunding is measured in …
    117. 117. Entrepreneurship
    118. 118. Crowdfunding Arizona Can it jumpstart entrepreneurship?
    119. 119. 1. Kickstarter “Fails” Arizona does poorly …
    120. 120. 2. Members =/ Supporters % of supporters is the key ….
    121. 121. 3. Entrepreneurship is Different Products, Companies, Entrepreneurs …
    122. 122. 4. The role of “Ecosystem” Incubators, accelerators, mentors etc ..
    123. 123. 5. The power of Community Shared Goals, Passions, Outcomes …
    124. 124. Shared Goals, Passions, Outcomes …
    125. 125. Crowdfunding for Entrepreneurship & Economic Growth Shared Goals, Passions, Outcomes …
    126. 126. People as Important as Projects … Organizations & Affiliations …
    127. 127. Entrepreneurs success as much as funding …
    128. 128. $15k - $100k *(Average $50k) ….
    129. 129. Crowdfunding for Entrepreneurship & Economic Growth
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×