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

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!

Funding entrepreneurship cj cornell-december3rd 2012 Funding entrepreneurship cj cornell-december3rd 2012 Presentation Transcript

  • Funding EntrepreneurshipC.J. Cornell @cjcornell
  • Small BusinessSmall Business High-Growth Startups High-Growth Startups Social Impact Social Impact Ideas -> Ideas -> Patents, IP etc Patents, IP etc INtrapreneurship INtrapreneurship
  • Defining EntrepreneurshipACTIVITIES RESOURCES RESULTS
  • 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’
  • 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’
  • 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’
  • ACTIVITIES RESOURCES RESULTS
  • 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.
  • 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 $ VentureEntrepreneur Capital IPO $ $
  • Concept to Product to GrowthEntrepreneur IPO $ VentureEntrepreneur Capital IPO $ $ Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $
  • Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ Crowdfunding
  • Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $ Crowdfunding Crowdfunding
  • Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding
  • Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding Crowdfunding $
  • 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, social networking• Online and Offiline• Debt, donation, equity and other• ROI, ROE
  • 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 – Kickstarter Model – Rewards Based – Pre-Order/Presumer• Equity Crowdfunding – JOBS act
  • 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.
  • 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 closed its  Kickstarter campaign at $702,000, far  surpassing its $100,000 goal.
  • • 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.
  • 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 $$
  • Rewards-based, Donation Crowdfunding:SO, WHY WOULD ANYONE …??
  • American Grandmaster a Patrick Million FILM Directed by Patrick Million Executive Producer CJ Cornell
  • WHY Crowdfunding?• Passion – For the technology – For the industry – For the cause – For the product• Affinity – For the Entrepreneur – For the region, industry etc• Connection• Every reason BUT  R.O.I.  …
  • Lessons from Ethan Mollick’s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
  • emotional rate of return. Not financial ROI
  • The Kickstart Model..UH OH …
  • Crowdfunding sites• Kickstarter • Equity Crowdfunding • Indiegogo sites (not legal, not •   operating)•  • • Specialty niche    Crowdfunding sites•  •  Propel Arizona  • Micro loan,  cause/charity funding  sites.
  • HOW to Crowdfund?1. PRE - Preparing2. PUSH - Running the campaign3. POST – Delivering on your Promise
  • HOW to Crowdfund?1. PRE - Preparing – Build Credibility – Sharpen Pitch & Post – Perks and Rewards – Timefames & $$
  • HOW to Crowdfund?PUSH - Running the campaign• Social Media• Comments & Updates• Networking• Personal Pitches
  • Social Engagement– Transparency & Trust– Social Proof & Viral FX – Engagement & “The Fundamentals” – Twitter – Facebook – Blogging
  • 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