Funding               EntrepreneurshipC.J. Cornell            @cjcornell
Small BusinessSmall Business                            High-Growth Startups                            High-Growth Startu...
Defining             EntrepreneurshipACTIVITIES       RESOURCES      RESULTS
Type of                    Desired/Expected           Activities                     Resources Required /Entrepreneurship ...
Type of            Desired/Expected           Activities                     Resources Required /Entrepreneurship   Outcom...
Type of            Desired/Expected           Activities                     Resources Required /Entrepreneurship   Outcom...
ACTIVITIES   RESOURCES   RESULTS
Type of            Desired/Expected           Activities                    Resources Required /Entrepreneurship   Outcome...
The Funding Gap
Concept to Product to Growth
Concept to Product to Growth  $        $         $         $
Concept to Product to GrowthEntrepreneur                                  IPO                                             ...
Concept to Product to GrowthEntrepreneur                                  IPO                                             ...
Concept to Product to GrowthEntrepreneur                                  IPO                                             ...
Concept to Product to Growth                   Angels,         VentureEntrepreneur       accel & incub   Capital    IPO   ...
Concept to Product to Growth                   Angels,         VentureEntrepreneur       accel & incub   Capital    IPO   ...
Concept to Product to Growth                   Angels,         VentureEntrepreneur       accel & incub   Capital    IPO   ...
Concept to Product to Growth                   Angels,         VentureEntrepreneur       accel & incub   Capital       IPO...
CrowdfundingSoliciting & Collecting relatively small amounts  of money (funding) from a large number  (crowd) of people
What is Crowdfunding• Derived from Collective Intellgence• Convergence of ecommerce, venture funding,  social media, socia...
What is Crowdfunding
What is Crowdfunding
What is Crowdfunding
What is Crowdfunding
What is Crowdfunding
What is Crowdfunding
What is Crowdfunding
What is Crowdfunding
Crowdfunding Concepts• Debt Crowdfunding   – microloans   – P2P lending• Donation Crowdfunding   –   Charity/Causes   –   ...
Equity Crowdfunding - JOBS•   Eliminates ban on general solicitation and general advertising in connection    with private...
Rewards-based, Donation Crowdfunding:“THE KICKSTARTER MODEL”
ALL OR NOTHING
Perks &Rewards
Updates (and Blogging)
Updates (and Blogging)
Comments & Engagement
http://www.kickstarter.com/projects/hop/elevation-dock-the-best-dock-for-ip
• The iPhone-friendly Pebble watch earned $7.6   million more than its $100,000 goal. • And the Galileo iPhone platform cl...
• Ouya raised $2 million in one day for a new Android gaming   console (it’s raised more than $5 million to date), • the N...
Rewards-based, Donation Crowdfunding:REWARDS & PERKS = “WHY”
http://trendwatching.com/trends/infographics/presumers/
Rewards Crowdfunding          • Incentives & perks          • Pre-Orders          • Pre-Sumers          • Market Validation
Rewards don’t have to worth $$
Rewards-based, Donation Crowdfunding:SO, WHY WOULD ANYONE …??
American Grandmaster    a Patrick Million FILM         Directed by    Patrick Million    Executive Producer      CJ Cornell
WHY Crowdfunding?• Passion   –   For the technology   –   For the industry   –   For the cause   –   For the product• Affi...
Lessons from Ethan Mollick’s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
emotional rate of return.      Not financial ROI
The Kickstart Model..UH OH …
Crowdfunding sites•   Kickstarter        • Equity Crowdfunding •   Indiegogo            sites (not legal, not •           ...
HOW to Crowdfund?1. PRE - Preparing2. PUSH - Running the campaign3. POST – Delivering on your Promise
HOW to Crowdfund?1. PRE - Preparing –   Build Credibility –   Sharpen Pitch & Post –   Perks and Rewards –   Timefames & $$
HOW to Crowdfund?PUSH - Running the campaign•   Social Media•   Comments & Updates•   Networking•   Personal Pitches
Social Engagement– Transparency & Trust– Social Proof & Viral FX                            – Engagement & “The Fundamenta...
HOW to Crowdfund?POST - campaign•   Thanks …•   Perks and rewards•   Updates•   Completing your goals !!
Introducing …        Crowdfunding Arizona Entrepreneurs   Jumpstarting Innovation & Economic Growthwww.   propelarizona.com
•   Brave Souls•   White Knights•   Superstars•   Supernovas•   Etc …
•   Pitch Events•   Contests•   Workshops•   Mentoring
www.   propelarizona.com
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
Funding entrepreneurship cj cornell-december3rd 2012
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Funding entrepreneurship cj cornell-december3rd 2012

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Funding Entrepreneurship lecture, CJ Cornell

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  • Spear … snake … WALL … tree … rope .. FAN(ear) "The Blind Men and the Elephant." = by 19th-century American poet John Godfrey Saxe It was six men of Indostan To learning much inclined, Who went to see the Elephant (Though all of them were blind), That each by observation Might satisfy his mind. The First approached the Elephant, And happening to fall Against his broad and sturdy side, At once began to bawl: "God bless me! but the Elephant Is very like a wall!" The Second, feeling of the tusk, Cried, "Ho! what have we here So very round and smooth and sharp? To me 'tis mighty clear This wonder of an Elephant Is very like a spear!" The Third approached the animal, And happening to take The squirming trunk within his hands, Thus boldly up and spake: "I see," quoth he, "the Elephant Is very like a snake!" The Fourth reached out an eager hand, And felt about the knee. "What most this wondrous beast is like Is mighty plain," quoth he; "'Tis clear enough the Elephant Is very like a tree!" The Fifth, who chanced to touch the ear, Said: "E'en the blindest man Can tell what this resembles most; Deny the fact who can This marvel of an Elephant Is very like a fan!" The Sixth no sooner had begun About the beast to grope, Than, seizing on the swinging tail That fell within his scope, "I see," quoth he, "the Elephant Is very like a rope!" And so these men of Indostan Disputed loud and long, Each in his own opinion Exceeding stiff and strong, Though each was partly in the right, And all were in the wrong!
  • Transcript of "Funding entrepreneurship cj cornell-december3rd 2012"

    1. 1. Funding EntrepreneurshipC.J. Cornell @cjcornell
    2. 2. Small BusinessSmall Business High-Growth Startups High-Growth Startups Social Impact Social Impact Ideas -> Ideas -> Patents, IP etc Patents, IP etc INtrapreneurship INtrapreneurship
    3. 3. Defining EntrepreneurshipACTIVITIES RESOURCES RESULTS
    4. 4. Type of Desired/Expected Activities Resources Required /Entrepreneurship Outcome AvailableSmall Business Paycheck(s), Personal Business Operations: Personal Funds, Bank Loans,(merchant, consultant, Satisfaction (lifestyle) Legal establishment, SBA Assistance. “organic”freelancer, franchisee) managing employees etc. (revenue funding)Innovation Patents, IP, Tech Institutional research, Government/Public Funding.(Scientist, researcher, Transfer, Royalties Documentation of IP Foundation and special privateinventor, artist …) (patron) fundingIntrapreneurship Large company “working the system”, Internal, corporate resources,(manager, employee) growth, new aligning allies, persuading funding products, new stakeholders processes…Social Solving or Impacting Marketing, petitioning, Foundation funding.Entrepreneurship “causes” & societal organizing. “empowering” Charitable/fundraiding.(activist, advocates, issues. Awareness. others to do the same. Patrons. Public funding.patrons) Behavior change.“Vanguard” Growth; market Rapid concept to product, Personal funds.Entrepreneurship making,.“Scalability”. to market. “pitching”, Angel funding(technologists, ‘silicon Rapid Market business models, acquiring Venture capitalvalley’, opportunists, domination. “users” – particularly early IPOdreamers) Wealth – personal adopters and influencers. and ‘community’
    5. 5. Type of Desired/Expected Activities Resources Required /Entrepreneurship Outcome AvailableSmall Business Funding Paycheck(s), Personal Business Operations: Personal Funds, Bank Loans, Satisfaction (lifestyle) Legal establishment, SBA Assistance. “organic” Entrepreneurship etc. managing employees (revenue funding)Innovation Patents, IP, Tech Institutional research, Government/Public Funding. Transfer, Royalties Documentation of IP Foundation and special private (patron) fundingIntrapreneurship Large company “working the system”, Internal, corporate resources, growth, new aligning allies, persuading funding products, new stakeholders processes…Social Solving or Impacting Marketing, petitioning, Foundation funding. “causes” & societal organizing. “empowering” Charitable/fundraiding. issues. Awareness. others to do the same. Patrons. Public funding. Behavior change.“Vanguard” Growth; market Rapid concept to product, Personal funds. making,.“Scalability”. to market. “pitching”, Angel funding Rapid Market business models, acquiring Venture capital domination. “users” – particularly early IPO Wealth – personal adopters and influencers. and ‘community’
    6. 6. Type of Desired/Expected Activities Resources Required /Entrepreneurship Outcome AvailableSmall Business Funding Paycheck(s), Personal Business Operations: Personal Funds, Bank Loans, Satisfaction (lifestyle) Legal establishment, SBA Assistance. “organic” Entrepreneurship etc. managing employees (revenue funding)Innovation Patents, IP, Tech Institutional research, Government/Public Funding. Transfer, Royalties Documentation of IP Foundation and special private (patron) fundingIntrapreneurship Large company growth, new products, new WHY “working the system”, aligning allies, persuading stakeholders Internal, corporate resources, funding processes…Social Solving or Impacting Marketing, petitioning, Foundation funding. “causes” & societal organizing. “empowering” Charitable/fundraiding. issues. Awareness. others to do the same. Patrons. Public funding. Behavior change.“Vanguard” Growth; market Rapid concept to product, Personal funds. making,.“Scalability”. to market. “pitching”, Angel funding Rapid Market business models, acquiring Venture capital domination. “users” – particularly early IPO Wealth – personal adopters and influencers. and ‘community’
    7. 7. ACTIVITIES RESOURCES RESULTS
    8. 8. Type of Desired/Expected Activities Resources Required /Entrepreneurship Outcome AvailableSmall Business Paycheck(s), Personal Business Operations: Personal Funds, Bank Loans, Satisfaction (lifestyle) Legal establishment, SBA Assistance. “organic” managing employees etc. (revenue funding)Innovation Patents, IP, Tech Institutional research, Government/Public Funding. Transfer, Royalties Documentation of IP Foundation and special private (patron) fundingIntrapreneurship Large company “working the system”, Internal, corporate resources, growth, new aligning allies, persuading funding products, new stakeholders processes…Social Solving or Impacting Marketing, petitioning, Foundation funding. “causes” & societal organizing. “empowering” Charitable/fundraiding. issues. Awareness. others to do the same. Patrons. Public funding. Behavior change.“Vanguard” Growth; market Rapid concept to product, Personal funds. making,.“Scalability” to market. “pitching”, . Rapid Market business models, Angel funding domination. acquiring “users” – Venture capital Wealth – personal particularly early IPO and ‘community’ adopters and influencers.
    9. 9. The Funding Gap
    10. 10. Concept to Product to Growth
    11. 11. Concept to Product to Growth $ $ $ $
    12. 12. Concept to Product to GrowthEntrepreneur IPO $
    13. 13. Concept to Product to GrowthEntrepreneur IPO $ VentureEntrepreneur Capital IPO $ $
    14. 14. Concept to Product to GrowthEntrepreneur IPO $ VentureEntrepreneur Capital IPO $ $ Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $
    15. 15. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ Crowdfunding
    16. 16. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $ Crowdfunding Crowdfunding
    17. 17. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding
    18. 18. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding Crowdfunding $
    19. 19. CrowdfundingSoliciting & Collecting relatively small amounts of money (funding) from a large number (crowd) of people
    20. 20. What is Crowdfunding• Derived from Collective Intellgence• Convergence of ecommerce, venture funding, social media, social networking• Online and Offiline• Debt, donation, equity and other• ROI, ROE
    21. 21. What is Crowdfunding
    22. 22. What is Crowdfunding
    23. 23. What is Crowdfunding
    24. 24. What is Crowdfunding
    25. 25. What is Crowdfunding
    26. 26. What is Crowdfunding
    27. 27. What is Crowdfunding
    28. 28. What is Crowdfunding
    29. 29. Crowdfunding Concepts• Debt Crowdfunding – microloans – P2P lending• Donation Crowdfunding – Charity/Causes – Kickstarter Model – Rewards Based – Pre-Order/Presumer• Equity Crowdfunding – JOBS act
    30. 30. Equity Crowdfunding - JOBS• Eliminates ban on general solicitation and general advertising in connection with private offerings to accredited investors under Regulation D (Rule 506) and to qualified institutional buyers under Rule 144A.• Exemption from Securities Act registration “crowdfunding” transactions (involving access to small amounts of capital through the internet).• Exemption to allow issuance of up to $50 million of securities in any 12-month period, up from the current $5 million threshold• An increase in the number of shareholders a company may have before being required to register its common stock with the SEC and become a public reporting company from 500 to 2,000 total shareholders (including up to 500 “unaccredited” shareholders)• Amount each person may invest in offerings of this type, tiered by the persons net worth or yearly income.
    31. 31. Rewards-based, Donation Crowdfunding:“THE KICKSTARTER MODEL”
    32. 32. ALL OR NOTHING
    33. 33. Perks &Rewards
    34. 34. Updates (and Blogging)
    35. 35. Updates (and Blogging)
    36. 36. Comments & Engagement
    37. 37. http://www.kickstarter.com/projects/hop/elevation-dock-the-best-dock-for-ip
    38. 38. • 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.
    39. 39. • 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.
    40. 40. Rewards-based, Donation Crowdfunding:REWARDS & PERKS = “WHY”
    41. 41. http://trendwatching.com/trends/infographics/presumers/
    42. 42. Rewards Crowdfunding • Incentives & perks • Pre-Orders • Pre-Sumers • Market Validation
    43. 43. Rewards don’t have to worth $$
    44. 44. Rewards-based, Donation Crowdfunding:SO, WHY WOULD ANYONE …??
    45. 45. American Grandmaster a Patrick Million FILM Directed by Patrick Million Executive Producer CJ Cornell
    46. 46. WHY Crowdfunding?• Passion – For the technology – For the industry – For the cause – For the product• Affinity – For the Entrepreneur – For the region, industry etc• Connection• Every reason BUT  R.O.I.  …
    47. 47. Lessons from Ethan Mollick’s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
    48. 48. emotional rate of return. Not financial ROI
    49. 49. The Kickstart Model..UH OH …
    50. 50. Crowdfunding sites• Kickstarter • Equity Crowdfunding • Indiegogo sites (not legal, not •   operating)•  • • Specialty niche    Crowdfunding sites•  •  Propel Arizona  • Micro loan,  cause/charity funding  sites.
    51. 51. HOW to Crowdfund?1. PRE - Preparing2. PUSH - Running the campaign3. POST – Delivering on your Promise
    52. 52. HOW to Crowdfund?1. PRE - Preparing – Build Credibility – Sharpen Pitch & Post – Perks and Rewards – Timefames & $$
    53. 53. HOW to Crowdfund?PUSH - Running the campaign• Social Media• Comments & Updates• Networking• Personal Pitches
    54. 54. Social Engagement– Transparency & Trust– Social Proof & Viral FX – Engagement & “The Fundamentals” – Twitter – Facebook – Blogging
    55. 55. HOW to Crowdfund?POST - campaign• Thanks …• Perks and rewards• Updates• Completing your goals !!
    56. 56. Introducing … Crowdfunding Arizona Entrepreneurs Jumpstarting Innovation & Economic Growthwww. propelarizona.com
    57. 57. • Brave Souls• White Knights• Superstars• Supernovas• Etc …
    58. 58. • Pitch Events• Contests• Workshops• Mentoring
    59. 59. www. propelarizona.com
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