Crowdfunding 101 - at SMAZ 6, Skysong ASU Propel Arizona

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Crowdfunding overview, particularly the social media and behavior aspects of rewards-based crowdfunding.

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Crowdfunding 101 - at SMAZ 6, Skysong ASU Propel Arizona

  1. 1. Crowdfunding More than Money:A Social Revolution
  2. 2. C.J. Cornell @cjcornellCrowdfunding
  3. 3. What is Crowdfunding? When & Why to Crowdfund? Successful Crowdfunding How to Crowdfund Propel Arizona …Crowdfunding CJ Cornell
  4. 4. What is Crowdfunding?
  5. 5. CrowdfundingSoliciting & Collecting relatively small amounts of money (funding) from a large number (crowd) of people
  6. 6. 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
  7. 7. What is Crowdfunding
  8. 8. What is Crowdfunding
  9. 9. What is Crowdfunding
  10. 10. What is Crowdfunding
  11. 11. What is Crowdfunding
  12. 12. What is Crowdfunding
  13. 13. What is Crowdfunding
  14. 14. What is Crowdfunding
  15. 15. The Funding/Innovation Gap
  16. 16. Concept to Product to Growth
  17. 17. Concept to Product to Growth $ $ $ $
  18. 18. Concept to Product to GrowthEntrepreneur IPO $
  19. 19. Concept to Product to GrowthEntrepreneur IPO $ VentureEntrepreneur Capital IPO $ $
  20. 20. Concept to Product to GrowthEntrepreneur IPO $ VentureEntrepreneur Capital IPO $ $ Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $
  21. 21. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ Crowdfunding
  22. 22. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $ Crowdfunding Crowdfunding
  23. 23. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding
  24. 24. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding Crowdfunding $
  25. 25. Crowdfunding Concepts• Debt Crowdfunding – microloans – P2P lending• Donation Crowdfunding – Charity/Causes – Kickstarter Model – Rewards Based – Pre-Order/Presumer• Equity Crowdfunding – JOBS act
  26. 26. 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.
  27. 27. Rewards-based, Donation Crowdfunding:“THE KICKSTARTER MODEL”
  28. 28. ALL OR NOTHING
  29. 29. Perks &Rewards
  30. 30. Updates (and Blogging)
  31. 31. Updates (and Blogging)
  32. 32. Comments & Engagement
  33. 33. Rewards-based, Donation Crowdfunding:REWARDS & PERKS = “WHY”
  34. 34. Rewards-based, Donation Crowdfunding:PRE-ORDER / PRESUMERS …
  35. 35. Rewards Crowdfunding • Incentives & perks • Pre-Orders • Pre-Sumers • Market Validation
  36. 36. Rewards don’t have to worth $$
  37. 37. Rewards-based, Donation Crowdfunding:SO, WHY WOULD ANYONE …??
  38. 38. American Grandmaster a Patrick Million FILM Directed by Patrick Million Executive Producer CJ Cornell
  39. 39. WHY Crowdfunding?• Passion – For the technology – For the industry – For the cause – For the product• Affinity – For the Entrepreneur – For the region, industry etc• Connection• Every reason BUT R.O.I. …
  40. 40. Lessons from Ethan Mollick’s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
  41. 41. emotional rate of return. Not financial ROI
  42. 42. The Kickstart Model..UH OH …
  43. 43. Crowdfunding sites• Kickstarter • Equity Crowdfunding• Indiegogo sites (not legal, not• operating)•• • Specialty niche Crowdfunding sites•• Propel Arizona • Micro loan, cause/charity funding sites.
  44. 44. HOW to Crowdfund?1. PRE - Preparing2. PUSH - Running the campaign3. POST – Delivering on your Promise
  45. 45. HOW to Crowdfund?1. PRE - Preparing – Build Credibility – Sharpen Pitch & Post – Perks and Rewards – Timefames & $$
  46. 46. HOW to Crowdfund?PUSH - Running the campaign• Social Media• Comments & Updates• Networking• Personal Pitches
  47. 47. Social Engagement– Transparency & Trust– Social Proof & Viral FX – Engagement & “The Fundamentals” – Twitter – Facebook – Blogging
  48. 48. HOW to Crowdfund?POST - campaign• Thanks …• Perks and rewards• Updates• Completing your goals !!
  49. 49. Introducing … Crowdfunding Arizona Entrepreneurs Jumpstarting Innovation & Economic Growthwww. propelarizona.com
  50. 50. • Brave Souls• White Knights• Superstars• Supernovas• Etc …
  51. 51. • Pitch Events• Contests• Workshops• Mentoring
  52. 52. www. propelarizona.com

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