Your SlideShare is downloading. ×
  • Like
Crowdfunding workshop 48 west-feb-16-2013-propel arizona
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Crowdfunding workshop 48 west-feb-16-2013-propel arizona

  • 827 views
Published

Hands on Crowdfunding Workshop by Propel Arizona

Hands on Crowdfunding Workshop by Propel Arizona

Published in Economy & Finance
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
827
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
9
Comments
0
Likes
1

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • 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!

Transcript

  • 1. Crowdfunding Hands-on For Entrepreneurs WYNTK * (what you need to know)48-West , 16 February 2013 CJ Cornell – Propel Arizona
  • 2. „Serial/Parallel Entrepreneur” 10+ companies $250M Funding 4 Exits (great !) $3B Revenues 4 Failures (awful !) Lots of lessons. Chaos, Pain and Joy. Investor/Venture Capitalist EIR, Venture Partner Angel Investor 5 Companies 9 Boards 3,000 Tylenol Caplets. Ego and Brain Atrophy.CJ Cornell University Professor@cjcornell Professor of Digital Media & Entrepreneurship Arizona State University, SJSU, Stanford (Lecturer) New York Institute of Technologycj@cjcornell.com Knight Center for Digital Media Entrepreneurship Research in digital media, behavior, entrepreneurship Advisor/Mentor, Author etc. ASU – Skysong, Venture Catalyst, RSS etc Arizona Commerce Authority / Venture ready Arizona Innovation Challenge Book: Age of Metapreneurship. Blog/Articles
  • 3. Agenda1. Crowdfunding overview2. Crafting the Idea and Campaign3. Preparing the Visuals4. Perks and rewards5. Running the campaign6. Success factors www.propelarizona.com Crowdfunding Workshop
  • 4. What is Crowdfunding? … and why should you care?
  • 5. The Funding Gap
  • 6. Concept to Product to Growth
  • 7. Concept to Product to Growth $ $ $ $
  • 8. Concept to Product to GrowthEntrepreneur IPO $
  • 9. Concept to Product to GrowthEntrepreneur IPO $ VentureEntrepreneur Capital IPO $ $
  • 10. The Kauffman Index of Entrepreneurial Activity is a leading indicator of newbusiness creation in the United States. In 2012 - The state with the HIGHEST level of Entrepreneurial Growth was … Arizona.
  • 11. # 1 in Entrepreneurial Growth # 46th in Venture Capital $
  • 12. Concept to Product to GrowthEntrepreneur IPO $ VentureEntrepreneur Capital IPO $ $ Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $
  • 13. Source: http://theyec.org/making-sense-of-the-jobs-act-and-crowdfunding-infographic/
  • 14. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ Crowdfunding
  • 15. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $ Crowdfunding Crowdfunding
  • 16. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding
  • 17. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding Crowdfunding $
  • 18. WYNTK(what you need to know) CrowdfundingSoliciting & Collecting relatively small amounts of money (“funding”) from a large number of people (“crowd”)
  • 19. “Crowdfunding is a term used to describe individualscoming together to support – and directly fundprojects by other individual and organizations. “http://blog.intuit.com/trends/crowd-power-what-is-crowdfunding-infographic
  • 20. • Source – http;//crowdfunder.com
  • 21. • Source – http;//crowdfunder.com
  • 22. Real Crowdfunding – that works. Today
  • 23. Rewards-based, Donation Crowdfunding:“THE KICKSTARTER MODEL”
  • 24. ALL OR NOTHING
  • 25. Perks &Rewards
  • 26. Updates (and Blogging)
  • 27. Updates (and Blogging)
  • 28. Comments & Engagement
  • 29. Kickstarter (2012)2.2 million people pledged a total of $319,786,629(up 221% from 2011)Backers pledged $606.76 per minutePeople in 177 countries backed a project in 2012(Thats 90% of the countries in the world)
  • 30. Source: http://KickstartersHQ.com
  • 31. WHY … Do people Crowdfund?
  • 32. Lessons from Ethan Mollick‟s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
  • 33. 3 Why’s: 1. They connect to the greater purpose of the campaign three main reasons why people unconnected to a 2. They connect to a physicalproject or business would aspect of the campaign like the support it: rewards 3. They connect to the creative display of the campaign’s presentation 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
  • 34. • Passion – For the technology – For the industryThe Real – For the cause (Crowdfunding) – For the product Why’s • Affinity – For the Entrepreneur – For the region, industry etc • Connection • Every reason BUT R.O.I. …
  • 35. WYNTK (what you need to know) Crowdfunding is about …emotional ROI. Not financial ROI
  • 36. WYNTK (what you need to know)(when crowdfunding …) “its not what you do, but why you do it,”
  • 37. http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-multi-touch-watch-kits
  • 38. “Consumers who want products before they are developed” Pre-orders Early adopters Supporters http://trendwatching.com/trends/infographics/presumers/
  • 39. The Kickstart Model..UH OH …
  • 40. WYNTK(what you need to know)1. Crowdfunding = New “1st Money” for ventures ($10k - $50k average– but wild exceptions)2. Equity Crowdfunding is Still Far away3. Rewards based Model IS Crowdfunding today4. All or Nothing Crowdfunding – Standard5. Perks and Rewards: Pre-order Crowdfunding6. Social Media & Content Intensive www.propelarizona.com
  • 41. What does success look like?
  • 42. • 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.
  • 43. • 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.
  • 44. What do successful campaigns have in common?
  • 45. http://www.kickstarter.com/projects/hop/elevation-dock-the-best-dock-for-iphone
  • 46. Projectiohttp://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector
  • 47. http://www.kickstarter.com/projects/1719196889/iceblink-engine?ref=home_location
  • 48. http://www.kickstarter.com/projects/812916345/magnet-comic-a-custom-magnetic-and-dry-erase-comic?ref=home_popular
  • 49. http://www.kickstarter.com/projects/mikebond/ti2-sentinel-titanium-cache?ref=home_popular
  • 50. http://www.kickstarter.com/projects/poots/kingdom-death-monster?ref=home_popular
  • 51. http://www.kickstarter.com/projects/smartthings/smartthings-make-your-world-smarter?ref=category
  • 52. http://www.kickstarter.com/projects/thejumpshot/jumpshot-a-new-weapon-to-battle-pc-frustration?ref=category
  • 53. http://www.kickstarter.com/projects/374405221/mary-elizabeths-sock-the-first-book-collection?ref=home_location
  • 54. http://trendwatching.com/trends/infographics/presumers/
  • 55. Crafting aSuccessfulCrowdfunding Campaign
  • 56. Some initial rules ….
  • 57. WYNTK(what you need to know)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
  • 58. Componentsof aCrowdfunding Campaign
  • 59.  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
  • 60. Crafting the “Pitch”
  • 61. 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?
  • 62. 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?
  • 63. 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!
  • 64. Exercise –Craft the Pitch
  • 65. Crafting your PitchTitle & Short Description The 3 Who’s: •(repeatable & compelling) Who are the donors? (affinity & passion)Long Description (“The Pitch”) Who is benefits? (the market) •Make it a story … about “them” Who are you?Visuals: Video, Photos, ImagesTeam, Deliverables, DetailsPerks & rewards The 3 Why’s Why would your donors care?Funding Goals: Amount and Timeframe Why does the market care?Updates & SOCIAL MEDIA CAMPAIGN •Repeatable Messages Why are you the right team to do it? •Daily “routine” •Traditional marketing too What is your project & goal? Understandable & Simple Compelling & IntriguingTell a story Repeatable & MemorableMake it about themThe History of the idea is intriguing How and WhenWhat is the Impact? How will you achieve your goal?Why is this important? Realistic?Try a FAQ When, after funding?Call to action – get them involved! When will I get my perks?
  • 66. Pitch Notes - 1• Who (donors, market) • Impact (on the market)• “Why” – the story • Impact (on the donors)
  • 67. Pitch Notes - 2• Story, and History … • Perk Ideas (what’s important to donors)• FAQ • Calls to Action
  • 68. Visuals
  • 69. 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
  • 70. 7 habits of highly successful crowdfunding campaigns1. They already have fan bases2. They build off of something familiar3. They are simple4. They are (usually) NOT about the company5. They appeal to a specific interest ….6. They are BUZZWORTHY ….7. They work really hard at it!
  • 71. Perks & Rewards
  • 72. American Grandmaster a Patrick Million FILM Directed by Patrick Million Executive Producer CJ Cornell
  • 73. Rewards Crowdfunding • Incentives & perks • Pre-Orders • Pre-Sumers • Market Validation
  • 74. Rewards don’t have to worth $$
  • 75. • $25 perk is the single most claimed perk, representing nearly 25% of all perks that are selected.• While the $25 dollar perk is only responsible for raising 11% of total funds.
  • 76. • $100 perks raise more money than any other perk price and make up nearly 30% of total funds. A $100 perk combined with the next three perk price points: $50, $500, and $1000 makes up about 70% of total money raised by perks
  • 77. someRules for Rewards
  • 78. 1. Make perks unique & exclusive Avoid T-shirts, Mugs & Hugs
  • 79. 2. Target them
  • 80. 3. Give them a connection
  • 81. “The Cocktail Party Effect”
  • 82. “The Restaurant Effect”
  • 83. “The Carey School Effect”
  • 84. The less tangible the perk, the more public (visible) & EXCLUSIVE it needs to be.
  • 85. The Campaign
  • 86. How much $$ ?How long?
  • 87. 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?
  • 88. HOW to Crowdfund?PUSH - Running the campaign• Social Media• Comments & Updates• Networking• Personal Pitches
  • 89. Your mission: To get them talking about your project
  • 90. Now that you‟ve launched … Continue the story
  • 91. Social Engagement– Transparency & Trust– Social Proof & Viral FX – Engagement & “The Fundamentals” – Twitter – Facebook – Blogging
  • 92. 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/
  • 93. 1. Create:- A Facebook Account- A Twitter Account (for your campaign)
  • 94. 2. Tweet & Post –Frequently –Uniquely –Personally
  • 95. 3. Post Updates & Blog •About your progress •About the subject •About the industry •About the People
  • 96. 4. Go 1-1 •Reply to comments •Retweet/Repost Your fans and donors are your most powerful advocates!
  • 97. 5. Target, Measure & Adjust • Different Messages for different groups • Google, Hootsuite, others • Learn and Adjust focus
  • 98. Metricshttp://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
  • 99. Metricshttp://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
  • 100. 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
  • 101. Success Factors
  • 102. http://online.wsj.com/article/SB10000872396390443855804577601013094084438.html?mod=googlenews_wsj#articleTabs%3Darticle
  • 103. 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
  • 104. 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
  • 105. http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
  • 106. successful campaigns raise, on average, 49% percent of their goals during the first and last 10% of the campaign length.
  • 107. Successful campaigns took an average 11 days preparing for their launch.http://blog.indiegogo.com/2013/01/12-insights-for-2012.html
  • 108. Campaigns ran an average 49 days in 2012, as opposed to 60 in 2011.Successful campaigns fundraised for 39 days.
  • 109. The Average Successful Campaigntook 11 days to prepare.
  • 110. 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/Donorshttp://kickstartershq.com/articles/5-project-crushing-kickstarter-mistakes-how-to-avoid-themhttp://www.crowdsourcing.org/document/3-big-crowdfunding-myths-via-funderhut/23804
  • 111. Successful Crowdfunding Campaigns Focus on The new 4 P‟s … WYNTK (what you need to know) the 1. the the the2. 3. 4. www.propelarizona.com
  • 112. The new 4 P‟s of the WHO are they? What motivates them?Crowdfunding .. 1. focus on “them” – not your company Interests, Values … the the the2. 3. 4. You are pitching to “them” $$ Value is a negative driver ! It‟s a daily/hourly effort … TELL A STORY !! UNIQUE SOCIAL MEDIA WHY is more important than $$ It‟s about THEM It‟s a conversation … VIDEO(s) & VISUAL(s) EXCLUSIVE UPDATES, BLOGS, NEWS Tell the story in small „chapters‟ And what is important to “Them” Provide Value, and Talking Points VIDEO(s) & VISUAL(s) FIRST RE-POST, TWEETable And even smaller “sound bites” Make sure it is … It‟s about … for their network Give them a Story they BUZZWORTHY VALIDATION & EVIDENCE can tell to others. www.propelarizona.com
  • 113. The most important secret is …
  • 114. Showing Momentum (the perception of momentum)
  • 115. The most obvious secret is …
  • 116. Credibility = trust, competence & follow-through
  • 117. www.propelarizona.comCrowdfundingEntrepreneurship & InnovationArizona Economic Growth
  • 118. Practical Crowdfunding Workshopwww.propelarizona.com @PropelArizona