CrowdfundingEntrepreneurialSpark 8th March 2012 @twintangibles#crowdfundingES
Agenda• What is Crowdfunding?• How is it linked to social?• Advantages, disadvantages & examples• What is typical?• How to...
What is Crowdfunding?
What is Crowdfunding?“Crowdfunding is a method of raising   capital, or resources, by collecting together lots of small am...
Obama 2008 Campaign     $264.5M                                      Total                                      <$200     ...
Brewdog                        1st round:     2nd round:                        • 10% Firms    • 8% Firms Equity          ...
All or Nothing                  Reward Based                                   Take it All                                ...
Where is it Used?Source http://www.core77.com/blog/kickstarter/crowdfunding_revolution_should_i_do_this_21697.asp
Crowdcube            Source: www.crowdcube.com
How is it linked to social?
PopularityValue        The Long Tail                 Quantity                 Products
Re-imagine Yourself        ?£
Viral Reach
Expectation of Return• Non-traditional• Brand loyalty• Less aggressive?• Longer term? Coase’s Penguin – Yochai Benkler
Advantages, disadvantages and         examples
Advantages• Market testing• Distributed cognition• Not just cash• Small sums quickly available• Brand advocates• Increasin...
Disadvantages• It doesn’t always work• Damaging?• It’s not free• It is not a panacea• How will other investors view it• Ad...
Printrbot – 3D Printer                  •$25,000 Goal                  •Avg. donation $460                  •17 Reward cat...
The Bicycle Academy                •£40,000 Goal                •9 Reward categories                •Funded in 6 days     ...
What is typical?
So what is typical?                                Successful               Pledged           Projects      Backers   Avg ...
Source: www.crowdcube.com
How to be successful
Relative Success      Kickstarter         fundit.ie100         44%                75% 0
Keys to Success
Keys to Success
Keys to Success
Keys to Success•   Be Social Media ready•   Have a plan and prepare•   Don’t forget your offline community•   Select your ...
Tim Wrighttim@twintangibles.co.uk    @twintangibleswww.twintangibles.co.uk        twintangibles 2012
Kirsty Burnham
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Crowdfunding presentation at ESparkUK

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Crowdfunding presentation at ESparkUK

  1. 1. CrowdfundingEntrepreneurialSpark 8th March 2012 @twintangibles#crowdfundingES
  2. 2. Agenda• What is Crowdfunding?• How is it linked to social?• Advantages, disadvantages & examples• What is typical?• How to be successful• Kirsty Burnham - SoLoCo• Q&A
  3. 3. What is Crowdfunding?
  4. 4. What is Crowdfunding?“Crowdfunding is a method of raising capital, or resources, by collecting together lots of small amounts from alarge number of people generally using the Internet and social media.”
  5. 5. Obama 2008 Campaign $264.5M Total <$200 $122 $88.2m $27.7m Obama McCain www.xplane.com/obama
  6. 6. Brewdog 1st round: 2nd round: • 10% Firms • 8% Firms Equity Equity • £95 per share • £230 per • 5000 investors share • 90% sold in 3 months•First time any • 1300 • £1m investment in lesscompany in Europe had investors than 2 weeks.attempted to raise • 20% off in • £95 to £12k individualmoney via an online the shop! investmentsshare offering
  7. 7. All or Nothing Reward Based Take it All Holding Model CrowdfundingPlatform Models Equity Based Club Model Micro-lending Micro-finance P2P
  8. 8. Where is it Used?Source http://www.core77.com/blog/kickstarter/crowdfunding_revolution_should_i_do_this_21697.asp
  9. 9. Crowdcube Source: www.crowdcube.com
  10. 10. How is it linked to social?
  11. 11. PopularityValue The Long Tail Quantity Products
  12. 12. Re-imagine Yourself ?£
  13. 13. Viral Reach
  14. 14. Expectation of Return• Non-traditional• Brand loyalty• Less aggressive?• Longer term? Coase’s Penguin – Yochai Benkler
  15. 15. Advantages, disadvantages and examples
  16. 16. Advantages• Market testing• Distributed cognition• Not just cash• Small sums quickly available• Brand advocates• Increasingly a location for VCs• Stable investment• Expectation of return
  17. 17. Disadvantages• It doesn’t always work• Damaging?• It’s not free• It is not a panacea• How will other investors view it• Administration cost
  18. 18. Printrbot – 3D Printer •$25,000 Goal •Avg. donation $460 •17 Reward categories
  19. 19. The Bicycle Academy •£40,000 Goal •9 Reward categories •Funded in 6 days •Campaign Build- up/Preparation time: 5+ months
  20. 20. What is typical?
  21. 21. So what is typical? Successful Pledged Projects Backers Avg # backers Avg Project Value Avg Pledge ValueFilm & Video $32,473,790.40 3,284 308,541 94 $9,888.49 $105.25Music $19,801,685.21 3,653 260,178 71 $5,420.66 $76.11Design $9,180,637.55 319 99,923 313 $28,779.43 $91.88Art $5,900,166.14 1,172 78,558 67 $5,034.27 $75.11Publishing $5,134,388.55 774 74,280 96 $6,633.58 $69.12Technology $4,673,470.41 125 39,341 315 $37,387.76 $118.79Theatre $4,051,962.62 931 50,144 54 $4,352.27 $80.81Games $3,616,530.88 253 45,622 180 $14,294.59 $79.27Food $2,809,503.31 241 30,682 127 $11,657.69 $91.57Photography $2,116,261.93 343 26,897 78 $6,169.86 $78.68Comics $1,763,628.48 267 27,544 103 $6,605.35 $64.03Fashion $1,351,659.85 182 16,793 92 $7,426.70 $80.49Dance $1,054,763.95 292 14,377 49 $3,612.21 $73.36 Source: www.kickstarter.com
  22. 22. Source: www.crowdcube.com
  23. 23. How to be successful
  24. 24. Relative Success Kickstarter fundit.ie100 44% 75% 0
  25. 25. Keys to Success
  26. 26. Keys to Success
  27. 27. Keys to Success
  28. 28. Keys to Success• Be Social Media ready• Have a plan and prepare• Don’t forget your offline community• Select your project carefully• Select your platform carefully• Develop your rewards• Create your pitch• Select your channels• Develop a publishing plan• Define and allocate the resource and skills required• Get advice• Get legal advice
  29. 29. Tim Wrighttim@twintangibles.co.uk @twintangibleswww.twintangibles.co.uk twintangibles 2012
  30. 30. Kirsty Burnham

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