PracticalCrowdfunding         Workshop        www.propelarizona.com
Agenda1.    Crowdfunding overview2.    Crafting the Idea and Campaign3.    Preparing the Visuals4.    Perks and rewards5. ...
Crowdfunding overview
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
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...
Real Crowdfunding – that works.               Today
Rewards-based, Donation Crowdfunding:“THE KICKSTARTER MODEL”
ALL OR NOTHING
Perks &Rewards
Updates (and Blogging)
Updates (and Blogging)
Comments & Engagement
Kickstarter 2011•   Let’s look at some statistics for 2011:•   Launched Projects: 27,086•   Successful Projects: 11,836•  ...
Why ?(do people crowdfund)
Lessons from Ethan Mollick’s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
“its not what you do, but why you do it,”
There are three main reasons why people unconnected to a  project or business would support it:• 1. They connect to the gr...
WHY Crowdfunding?• Passion   –   For the technology   –   For the industry   –   For the cause   –   For the product• Affi...
emotional rate of return.      Not financial ROI
http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-multi-touch-watch-kits
http://trendwatching.com/trends/infographics/presumers/• “Consumers who want products before they  are developed”• Pre-ord...
The Kickstart Model..UH OH …
http://www.indiegogo.com/blog/2011/11/indiegogo-insight-campaigns-with-teams-raised-180-as-much-money-as-individuals.html
What you need to know1. Crowdfunding = New “1st Money” for ventures   ($10k - $50k average– but wild exceptions)2. Equity ...
HOW to Crowdfund?1. PRE - Preparing2. PUSH - Running the campaign3. POST – Delivering on your Promise
Some initial rules ….
1.   Crowdfunding takes work, new skills.2.   It takes a strategy, and preparation.3.   The rules are different.4.   You c...
Crafting the Idea and Campaign
HOW to Crowdfund?1. PRE - Preparing –   Build Credibility –   Sharpen Pitch & Post –   Perks and Rewards –   Timefames & $$
first …What does success look like?
• The iPhone-friendly Pebble watch earned $7.6  million more than its $100,000 goal.• And the Galileo iPhone platform clos...
• Ouya raised $2 million in one day for a new Android gaming  console (it’s raised more than $5 million to date),• the Nif...
What do successful campaigns have in common?
http://www.kickstarter.com/projects/hop/elevation-dock-the-best-dock-for-iphone
Projectiohttp://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector
http://www.kickstarter.com/projects/1719196889/iceblink-engine?ref=home_location
http://www.kickstarter.com/projects/812916345/magnet-comic-a-custom-magnetic-and-dry-erase-comic?ref=home_popular
http://www.kickstarter.com/projects/mikebond/ti2-sentinel-titanium-cache?ref=home_popular
http://www.kickstarter.com/projects/poots/kingdom-death-monster?ref=home_popular
http://www.kickstarter.com/projects/smartthings/smartthings-make-your-world-smarter?ref=category
http://www.kickstarter.com/projects/thejumpshot/jumpshot-a-new-weapon-to-battle-pc-frustration?ref=category
http://www.kickstarter.com/projects/374405221/mary-elizabeths-sock-the-first-book-collection?ref=home_location
http://trendwatching.com/trends/infographics/presumers/
7 habits of highly successful                campaigns•   They already have fan bases•   They build off of something famil...
Before you start, remember …•   For your target, Its about emotion•   It’s about elitness•   being part of the cool group•...
First Exercise(s)
Checklist1. Idea-check: (focus on target)  – About “them” not you.  – Emotional appeal: Passion, exclusivity, emotion.2. F...
Assignment
1. Idea  – What’s the story  – What’s the emotional appeal, benefits2. Who are the targets  – Benefits. Connections3. Desc...
Preparingthe Visuals
Perksand rewards
American Grandmaster    a Patrick Million FILM        Directed by    Patrick Million    Executive Producer      CJ Cornell
Rewards Crowdfunding          • Incentives & perks          • Pre-Orders          • Pre-Sumers          • Market Validation
Rewards don’t have to worth $$
• $25 perk is the single most claimed perk,  representing nearly 25% of all perks that are  selected.• While the $25 dolla...
• . $100 perks raise more money than any other  perk price and make up nearly 30% of total  funds. A $100 perk combined wi...
someRules for Rewards
1. Make them unique & Exclusive
2. Target them
3. Give them a connection
The Cocktail Party Effect
The Restaurant Effect
The Carey School Effect
Assignment
1. What is important to your target?2. What rewards can connect them to you or   your project3. What rewards are part of y...
Running asuccessful campaign
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 & $$
http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more-money-tha...
http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more-money-tha...
http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
successful campaigns raise, on average, 49% percent of their goals during the first and     last 10% of the campaign length.
Your mission: To get them talking about your project
http://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector?ref=home_popular
• most successful projects receive about 25-40% of  their revenue from their first, second and third  degree of connection...
Continue the story…
Social Engagement– Transparency & Trust– Social Proof & Viral FX                            – Engagement & “The Fundamenta...
1. Create:- A Facebook Account- A Twitter Account        (for your campaign)
2. Tweet & Post –Frequently –Uniquely –Personally
3. Post Updates & Blog   •About your progress   •About the subject   •About the industry   •About the People
4. Go 1-1   •Reply to comments   •Retweet/Repost    Your fans and donors are your most                   powerful advocates!
5. Target, Measure & Adjust   • Different Messages for different     groups   • Google, Hootsuite, others   • Learn and Ad...
Metricshttp://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
Metricshttp://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
•  the importance of google analytics to track  and improve performance• + perks from fivvr•• http://www.perlsteinlab.com/...
HOW to Crowdfund?POST - campaign•   Thanks …•   Perks and rewards•   Updates•   Completing your goals !!
The most important secret is …
Showing Momentum   (the perception of momentum)
The most obvious secret is …
Credibility         = trust, competence             & follow-through
Practical                        Crowdfunding                           Workshopwww.propelarizona.com      @PropelArizona
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
Propel Arizona - WORKSHOP - Dec 1 2012
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Propel Arizona, practical Crowdfunding Workshop #1, Dec 1 2012, @GangplankHQ Arizona

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Propel Arizona - WORKSHOP - Dec 1 2012

  1. 1. PracticalCrowdfunding Workshop www.propelarizona.com
  2. 2. Agenda1. Crowdfunding overview2. Crafting the Idea and Campaign3. Preparing the Visuals4. Perks and rewards5. Running a successful campaign Practical Crowdfunding www.propelarizona.com Workshop
  3. 3. Crowdfunding overview
  4. 4. The Funding Gap
  5. 5. Concept to Product to Growth
  6. 6. Concept to Product to Growth $ $ $ $
  7. 7. Concept to Product to GrowthEntrepreneur IPO $
  8. 8. Concept to Product to GrowthEntrepreneur IPO $ VentureEntrepreneur Capital IPO $ $
  9. 9. Concept to Product to GrowthEntrepreneur IPO $ VentureEntrepreneur Capital IPO $ $ Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $
  10. 10. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ Crowdfunding
  11. 11. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $ Crowdfunding Crowdfunding
  12. 12. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding
  13. 13. Concept to Product to Growth Angels, VentureEntrepreneur accel & incub Capital IPO $ $ $ $ $ $Crowdfunding $ Crowdfunding Crowdfunding Crowdfunding $
  14. 14. CrowdfundingSoliciting & Collecting relatively small amounts of money (funding) from a large number (crowd) of people
  15. 15. What is Crowdfunding
  16. 16. What is Crowdfunding
  17. 17. What is Crowdfunding
  18. 18. What is Crowdfunding
  19. 19. Crowdfunding Concepts• Debt Crowdfunding – microloans – P2P lending• Donation Crowdfunding – Charity/Causes – Kickstarter Model – Rewards Based – Pre-Order/Presumer• Equity Crowdfunding – JOBS act
  20. 20. 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.
  21. 21. Real Crowdfunding – that works. Today
  22. 22. Rewards-based, Donation Crowdfunding:“THE KICKSTARTER MODEL”
  23. 23. ALL OR NOTHING
  24. 24. Perks &Rewards
  25. 25. Updates (and Blogging)
  26. 26. Updates (and Blogging)
  27. 27. Comments & Engagement
  28. 28. Kickstarter 2011• Let’s look at some statistics for 2011:• Launched Projects: 27,086• Successful Projects: 11,836• Dollars Pledged: $99,344,382• Rewards Selected: 1,150,461• Total Visitors: 30,590,342• Project Success Rate: 46%
  29. 29. Why ?(do people crowdfund)
  30. 30. Lessons from Ethan Mollick’s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
  31. 31. “its not what you do, but why you do it,”
  32. 32. There are three main reasons why people unconnected to a project or business would support it:• 1. They connect to the greater purpose of the campaign• 2. They connect to a physical aspect of the campaign like the rewards• 3. They connect to the creative display of the campaign’s presentation• What Is Crowdfunding And How Does It Benefit The Economy - Forbes http://www.forbes.com/sites/tanyaprive/2012/11/27/what-is-crowdfunding-and-how-does-it-benefit-the- economy/
  33. 33. 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. …
  34. 34. emotional rate of return. Not financial ROI
  35. 35. http://www.kickstarter.com/projects/1104350651/tiktok-lunatik-multi-touch-watch-kits
  36. 36. http://trendwatching.com/trends/infographics/presumers/• “Consumers who want products before they are developed”• Pre-orders• Supporters
  37. 37. The Kickstart Model..UH OH …
  38. 38. http://www.indiegogo.com/blog/2011/11/indiegogo-insight-campaigns-with-teams-raised-180-as-much-money-as-individuals.html
  39. 39. What you need to know1. Crowdfunding = New “1st Money” for ventures ($10k - $50k average– but wild exceptions)2. Equity Crowdfunding is Still Far away3. Rewards based Model IS Crowdfunding today4. All or Nothing Crowdfunding – Standard5. Perks and Rewards: Pre-order Crowdfunding6. Social Media & Content Intensive
  40. 40. HOW to Crowdfund?1. PRE - Preparing2. PUSH - Running the campaign3. POST – Delivering on your Promise
  41. 41. Some initial rules ….
  42. 42. 1. Crowdfunding takes work, new skills.2. It takes a strategy, and preparation.3. The rules are different.4. You can’t just post and run …5. It’s a public success or failure – that “stays on your resume”
  43. 43. Crafting the Idea and Campaign
  44. 44. HOW to Crowdfund?1. PRE - Preparing – Build Credibility – Sharpen Pitch & Post – Perks and Rewards – Timefames & $$
  45. 45. first …What does success look like?
  46. 46. • 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.
  47. 47. • 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.
  48. 48. What do successful campaigns have in common?
  49. 49. http://www.kickstarter.com/projects/hop/elevation-dock-the-best-dock-for-iphone
  50. 50. Projectiohttp://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector
  51. 51. http://www.kickstarter.com/projects/1719196889/iceblink-engine?ref=home_location
  52. 52. http://www.kickstarter.com/projects/812916345/magnet-comic-a-custom-magnetic-and-dry-erase-comic?ref=home_popular
  53. 53. http://www.kickstarter.com/projects/mikebond/ti2-sentinel-titanium-cache?ref=home_popular
  54. 54. http://www.kickstarter.com/projects/poots/kingdom-death-monster?ref=home_popular
  55. 55. http://www.kickstarter.com/projects/smartthings/smartthings-make-your-world-smarter?ref=category
  56. 56. http://www.kickstarter.com/projects/thejumpshot/jumpshot-a-new-weapon-to-battle-pc-frustration?ref=category
  57. 57. http://www.kickstarter.com/projects/374405221/mary-elizabeths-sock-the-first-book-collection?ref=home_location
  58. 58. http://trendwatching.com/trends/infographics/presumers/
  59. 59. 7 habits of highly successful campaigns• They already have fan bases• They build off of something familiar• They are simple• They are (usually) NOT about the founders• They appeal to a specific interest ….
  60. 60. Before you start, remember …• For your target, Its about emotion• It’s about elitness• being part of the cool group• feeling like youre important -• feeling powerful! Influential
  61. 61. First Exercise(s)
  62. 62. Checklist1. Idea-check: (focus on target) – About “them” not you. – Emotional appeal: Passion, exclusivity, emotion.2. Funding Level – Realistic (for you and them) – Use of proceeds3. Timeframe4. Possible perks (not yet)
  63. 63. Assignment
  64. 64. 1. Idea – What’s the story – What’s the emotional appeal, benefits2. Who are the targets – Benefits. Connections3. Describe, tell story.4. What visuals should you provide.5. How much, how long? When done?
  65. 65. Preparingthe Visuals
  66. 66. Perksand rewards
  67. 67. American Grandmaster a Patrick Million FILM Directed by Patrick Million Executive Producer CJ Cornell
  68. 68. Rewards Crowdfunding • Incentives & perks • Pre-Orders • Pre-Sumers • Market Validation
  69. 69. Rewards don’t have to worth $$
  70. 70. • $25 perk is the single most claimed perk, representing nearly 25% of all perks that are selected.• While the $25 dollar perk is only responsible for raising 11% of total funds.
  71. 71. • . $100 perks raise more money than any other perk price and make up nearly 30% of total funds. A $100 perk combined with the next three perk price points: $50, $500, and $1000 makes up about 70% of total money raised by perks
  72. 72. someRules for Rewards
  73. 73. 1. Make them unique & Exclusive
  74. 74. 2. Target them
  75. 75. 3. Give them a connection
  76. 76. The Cocktail Party Effect
  77. 77. The Restaurant Effect
  78. 78. The Carey School Effect
  79. 79. Assignment
  80. 80. 1. What is important to your target?2. What rewards can connect them to you or your project3. What rewards are part of your project4. What unique rewards can you think of (that others are not doing)5. What rewards will get them talking to others!
  81. 81. Running asuccessful campaign
  82. 82. HOW to Crowdfund?1. PRE - Preparing2. PUSH - Running the campaign3. POST – Delivering on your Promise
  83. 83. HOW to Crowdfund?1. PRE - Preparing – Build Credibility – Sharpen Pitch & Post – Perks and Rewards – Timefames & $$
  84. 84. http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more-money-than-campaigns-that-dont.html
  85. 85. http://www.indiegogo.com/blog/2012/05/indiegogo-insight-campaigns-that-take-these-six-actions-raise-8-times-more-money-than-campaigns-that-dont.html
  86. 86. http://www.indiegogo.com/blog/2012/07/indiegogo-insight-winning-the-middle-game.html
  87. 87. successful campaigns raise, on average, 49% percent of their goals during the first and last 10% of the campaign length.
  88. 88. Your mission: To get them talking about your project
  89. 89. http://www.kickstarter.com/projects/1209578799/projecteo-the-tiny-instagram-projector?ref=home_popular
  90. 90. • most successful projects receive about 25-40% of their revenue from their first, second and third degree of connections.• This could include friends, family, work acquaintances, or anyone that the owner is connected to, including their second and third degree connections.• http://www.forbes.com/sites/tanyaprive/2012/11/27/what-is- crowdfunding-and-how-does-it-benefit-the-economy/
  91. 91. Continue the story…
  92. 92. Social Engagement– Transparency & Trust– Social Proof & Viral FX – Engagement & “The Fundamentals” – Twitter – Facebook – Blogging
  93. 93. 1. Create:- A Facebook Account- A Twitter Account (for your campaign)
  94. 94. 2. Tweet & Post –Frequently –Uniquely –Personally
  95. 95. 3. Post Updates & Blog •About your progress •About the subject •About the industry •About the People
  96. 96. 4. Go 1-1 •Reply to comments •Retweet/Repost Your fans and donors are your most powerful advocates!
  97. 97. 5. Target, Measure & Adjust • Different Messages for different groups • Google, Hootsuite, others • Learn and Adjust focus
  98. 98. Metricshttp://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
  99. 99. Metricshttp://www.perlsteinlab.com/blog/anatomy-of-a-crowdfund-week-3-slow-and-steady
  100. 100. • the importance of google analytics to track and improve performance• + perks from fivvr•• http://www.perlsteinlab.com/blog/anatomy- of-a-crowdfund-week-3-slow-and-steady
  101. 101. HOW to Crowdfund?POST - campaign• Thanks …• Perks and rewards• Updates• Completing your goals !!
  102. 102. The most important secret is …
  103. 103. Showing Momentum (the perception of momentum)
  104. 104. The most obvious secret is …
  105. 105. Credibility = trust, competence & follow-through
  106. 106. Practical Crowdfunding Workshopwww.propelarizona.com @PropelArizona
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