This document provides an overview and agenda for a crowdfunding workshop. It discusses what crowdfunding is, how it can help fill funding gaps for entrepreneurs, and the rise of crowdfunding platforms. It also outlines key aspects of running a successful crowdfunding campaign such as crafting an engaging idea and pitch, using visuals and videos, offering rewards, and engaging in social media promotion. Overall, the document aims to educate entrepreneurs on utilizing crowdfunding.
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 Technology
cj@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. Agenda
1. Crowdfunding overview
2. Crafting the Idea and Campaign
3. Preparing the Visuals
4. Perks and rewards
5. Running the campaign
6. Success factors
www.propelarizona.com
Crowdfunding
Workshop
9. Concept to Product to Growth
Entrepreneur IPO
$
Venture
Entrepreneur Capital IPO
$ $
10. The Kauffman Index of Entrepreneurial
Activity is a leading indicator of new
business 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 Growth
Entrepreneur IPO
$
Venture
Entrepreneur Capital IPO
$ $
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $
18. Concept to Product to Growth
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $ $
$
Crowdfunding
19. Concept to Product to Growth
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $ $
$ $ Crowdfunding
Crowdfunding
20. Concept to Product to Growth
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $ $
$ $Crowdfunding $
Crowdfunding Crowdfunding
21. Concept to Product to Growth
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $ $
$ $Crowdfunding $
Crowdfunding Crowdfunding Crowdfunding
$
22. WYNTK(what you need to know)
Crowdfunding
Soliciting & Collecting relatively small amounts
of money (“funding”) from a large number of
people (“crowd”)
23. “
Crowdfunding is a term used to describe individuals
coming together to support – and directly fund
projects by other individual and organizations.
“
http://blog.intuit.com/trends/crowd-power-what-is-crowdfunding-infographic
36. 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 countries in the world)
40. Lessons from Ethan Mollick‟s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
41. 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 physical
project 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
42. • Passion
– For the technology
– For the industry
The 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. …
43. WYNTK (what you need to know)
Crowdfunding is about …
emotional ROI.
Not financial ROI
44. WYNTK
(what you need to know)
(when crowdfunding …)
“its not what you
do, but why you do it,”
47. “Consumers who want products before they are
developed”
Pre-orders
Early adopters
Supporters
http://trendwatching.com/trends/infographics/presumers/
51. 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 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
53. • 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.
54. • 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.
68. 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
70. 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
72. 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?
73. 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?
74. 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!
76. 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 & Intriguing
Tell a story Repeatable & Memorable
Make it about them
The History of the idea is intriguing How and When
What 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?
77. Pitch Notes - 1
• Who (donors, market) • Impact (on the market)
• “Why” – the story • Impact (on the donors)
78. Pitch Notes - 2
• Story, and History … • Perk Ideas (what’s important to donors)
• FAQ • Calls to Action
80. 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
81. 7 habits of highly successful
crowdfunding campaigns
1. They already have fan bases
2. They build off of something familiar
3. They are simple
4. They are (usually) NOT about the company
5. They appeal to a specific interest ….
6. They are BUZZWORTHY ….
7. They work really hard at it!
89. • $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.
90. • $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
104. 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?
105. HOW to Crowdfund?
PUSH - Running the campaign
• Social Media
• Comments & Updates
• Networking
• Personal Pitches
108. Social Engagement
– Transparency & Trust
– Social Proof & Viral FX
– Engagement & “The Fundamentals”
– Twitter
– Facebook
– Blogging
109. 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/
110. 1. Create:
- A Facebook Account
- A Twitter Account
(for your campaign)
111. 2. Tweet & Post
–Frequently
–Uniquely
–Personally
112. 3. Post Updates & Blog
•About your progress
•About the subject
•About the industry
•About the People
113. 4. Go 1-1
•Reply to comments
•Retweet/Repost
Your fans and donors are your most
powerful advocates!
114. 5. Target, Measure & Adjust
• Different Messages for different
groups
• Google, Hootsuite, others
• Learn and Adjust focus
117. 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
127. 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
128. Successful Crowdfunding
Campaigns Focus on
The new 4 P‟s …
WYNTK
(what you need to know)
the
1.
the the the
2. 3. 4.
www.propelarizona.com
129. 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 the
2. 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
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!