1. Crowd funding
Group 25
Chandana Munipalle
www.chandanamunipalle.com
Harsh Kanchan
www.harshkanchan.com
Manmeet Ahluwalia (FT13239 )
www.msmanmeet.com
Harish Krishnan (FT13134 )
www.harishkrishnan.info
Jonaki Basu (FT13226)
www.jonakibasu.com
S

2. What is Crowd funding
S Collective effort of individuals who network
and pool their money to support efforts
initiated by other people or organizations
S Used to support various activities like,
disaster relief, citizen journalism, support of
artists by fans, start-up company funding,
scientific research etc
S Can be viewed as an alternative method to
raising finance for a business, project or
idea

3. Crowd funding platforms
S More than 450 crowd funding platforms like kickstarter,
IndieGoGo, Mobcaster, crowdtilt etc.
S The platforms create organizational systems and conditions for
resource integration among all the players
S Most platforms don’t charge for publishing a pitch
S Some might take a 5% commission if you reach your target
investment. If you don’t reach your target, you don’t need to
pay a penny!

4. Classification of platforms
Classification of platforms based on the type of return people get

5. Platforms in brief
S Reward based platform: People make donations to projects with the expectation of a
reward, both material (product pre-order) or intangible (mention on the website)
2/3rd of all platforms are of this type.
S Equity based platform: Project initiators and partner platforms define a time period and
target amount. The target is then divided and offered via the platform as equity shares at
fixed prices
After the target is reached investment phase begins.
S Microfinance:
Micro lending is provision of financial services to low-income clients, who lack access to banking
and related services. Money gathered is managed by a local intermediary. Kiva follows this
popular model.
Peer-to-peer lending and borrowing occurs directly between individuals. No intermediation of any
financial institution. Example: Zopa, LendingClub etc.

6. QUICK GLANCE -
KICKSTARTER
KICKSTARTER STATISTICS
70,000 projects created
$373,000,000 raised in funding
$333,000,000 raised for successful campaigns
$40,000,000 returned back to donors
44% of all projects successfully funded

8. How it works?
1. Artist/activist lists 4. Project owner sets
the idea on Kickstarter. rewards for various levels of
contributions
2. Project has a defined
goal and fits into one of the
15 categories
3. Once Kickstarter
approves the project, the
owner must set a funding
target and time-line

9. 5. Showcase your
project to donors by 6. Enter the crowd
creating a video or funding community
slide-show
7. Update your funders on
a regular basis about your
progress
8. Funds will be
released when target
is met.

10. Kiva
An online platform which allows people to lend money via the Internet to people
in developing countries through its partner microfinance institutions
View person
profile on Microfinance
Social Investor Kiva.org and Institution
MFI lends money
lend
Kiva allows MFI partners to raise capital at 0% from individual investors
across the globe. An astounding 99% repayment rate

11. Kiva moves money
• Lenders choose a
person to lend to based
on his profile
• An MFI gets the money
from Kiva at 0%
• The MFI lends the
money to borrower at
30%
• The borrower repays
the MFI
• The MFI repays Kiva
• Kiva repays the lenders

12. Who are Kiva Lenders?
Kiva is connecting everyday individuals to the microfinance industry
Kiva Lenders
• 500,000 lenders majorly from US.
Average amount loaned: $120
• 100+ countries across the world
•50% of Kiva lenders are above 40
• Only 9% of Kiva Lenders consider
themselves as being “very
knowledgeable” about
microfinance. Hence it is easy to
lend

13. What is Kiva?
Kiva is a significant new source of loan capital for MFI partners
Total Loan Capital Raised on Kiva to Date
100,000,000
Key Stats
• Size: Provided MFIs with over $95M+ in new loan capital since launch.
90,000,000
• Growth: $1M loans / 5K new lenders every week.
80,000,000
• User satisfaction: <10% of repaid loans withdrawn.
• Brand awareness: > 40K visit per day/ +100M brand impressions/
70,000,000 lenders from over 150 countries.
60,000,000
50,000,000 Kiva allows MFI partners to raise 0%
40,000,000 capital from individual lenders
30,000,000
across the globe.
20,000,000
10,000,000
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14. What makes Kiva work?
 Need exists everywhere
 Millions of small business in the world cannot access funding
 Small businesses create growth in economy and provide livelihood for
many people
 Kiva’s mission is to be a truly global company: people from any part of the
world can participate
 Can have a larger impact than just providing capital for MFIs:
 Increase awareness about microfinance & need
 Source of referral for MFIs for potential clients
 Growth of industry thanks to low cost capital

15. Rang De
Rang De is a pioneering, web-based social
VISION
initiative with a mission to provide cost effective To 'Make Poverty
microcredit to low income households in India. History in India'
Through an online micro lending platform called
MISSION
RangDe.Org, Rang De enables individuals to
.
participate in microcredit by lending as little as To enable individuals in India
and the world to connect
Rs. 100. with low income households
by participating in
microcredit in a holistic and
Rang De is a registered non-profit trust and is sustainable manner through
head quartered at Chennai. The organization is an online platform that is
transparent and
funded and supported by the CSO Partners and accountable.
ICICI Foundation.

16. How Rang De Works
RangDe.Org partners with MFIs & NGOs to identify borrowers.
The partner organization posts the profile of the borrowers on the website.
Any investor can access online the profiles of the borrowers for the required
loan.
The investor can pay either a part or the entire loan amount to the borrower.
When the entire loan amount is raised, the partner receives the money and
disburses it to the borrower.

17. Raising Capital
Individual social Investments
Any individual can lend as little as Rs.100
by simply registering online and choosing
a borrower of his/her choice.
Corporate social investments
A corporate can participate by allocating a
budget from their CSR funds. The funds
will be deployed as loans to micro-
entrepreneurs.

18. Rang De Partners
Rang De partners are grass root level non-
profit organisations (NPOs) and Microfinance
Institutions (MFIs), having strong presence in
the community.
The partners are taken on board after a
thorough due diligence process.
Due diligence process involves review of
financial and other records followed by a field
visit by Rang De staff.
Rang De partners act as disbursement and
collection agents and cannot levy charges
other than prescribed by Rang De and agreed
as per the agreement.
Currently, Rang De has 18 Field Partners with
operations in 10 states.

19. Rang De Loans
Loans for Businesses
These loans are facilitated at a rate of 8.5% flat.
Partner : 5%
Loans are for income generation activities.
Social Investor : 2%
Around 150 different activities funded so far.
Rang De : 1%
Contingency Fund : 0.5%
Micro Enterprise Loans
Contingency Fund : 1%
These loans will be facilitated at a rate of 10% flat.
Rang De : 2%
Loans will be facilitated for small businesses.
Partner : 3%
Loan size in excess of Rs.25,000
Social Investor : 4%

20. Rang De Loans
Loans for Primary & Secondary Education
Loans are facilitated at a rate of 5% flat. Partner : 4%
Social Investor : 0%
Loans are facilitated to fund school Rang De : 1%
fees, stationery, uniform and other expenses.
Contingency Fund : 0%
Loans are facilitated in the form of Education
Vouchers.
Schools accept education vouchers in lieu of
fees, uniforms and other expenses.
Partner : 5%
Loans for Job Guaranteed Vocational Education Social Investor : 2%
Rang De : 1%
Loans are facilitated at a rate of 8.5% flat. Contingency Fund : 0.5%
Loans are provided to unemployed youth from
rural India.
Training and placement is provided by our strategic
partner.

21. Rang De- Latest Statistics
Borrowers Impacted 10,127
Social Investors 2,906
Corporate Social Investors 9
Loans raised Rs. 5,38,67,100
Loans repaid Rs. 3,37,88,672
As on 6rh September 2011

22. Facts and future outlook
1997- The idea of crowd funding began in music industry when American
Fans underwrote an entire US tour of British group Marillion. They raised $60,000
through a Donation driven internet campaign.
2004- French Film ‘Demain la Veille’ raised $50,000 in 3 weeks through crwodfunding.
2006- The term crowdfunding was coined by Michael Sullivan. He states ‘ Many things
Are important but funding from the crowd is the base of which all else depends on
and is built on.
Age % of
Visitors
2012- Compnay’s like Kickstarter averages 1.1Million
visitors per month majority of which are below the age of 40. 0-17 1%
18-24 8%
25-34 27%
35-44 35%
45-54 16%
55-64 10%
64+ 2%

23. Facts and future
outlook

24. Facts and future outlook

25. Help for Small
Business
Small business in US generate 65% of net jobs, yet they are always in desperate need of
Money.
Without accredited investors, bank loans are the only option but post 2008 there has been
a sharp decline in loans being approved.
These small business are 99.7% self owned, pay 44% of total US private payroll and hire 43% of
hi-tech workers.
Funding- 1% of US population is represented by accredited investors and VC’s which demand
huge fees and reject 95% of the business plans.
Angel investors, friends and family do provide help and support but figures are vague.
Crowdfunding can thus provide better access to capital for small business and entrepreneurs.
It erases the barriers that VC’s and accredited investors impose.
Serves as a free marketing tool to expose your idea to thousands of users.
Provides support and consulting to promote their project.

26. Thank You