Rewards Based Crowdfunding is more than capital
1. Provides Market Validation
2. Crowdsourcing your product development
3. Platforms have apps to help you value your company
4. Provides focus on Minimum Viable Product
5. Democratizes the funding process
2. Crowdfunding vs. Traditional Funding?
• Provides Market Validation
• Crowdsourcing your product development
• Platforms like Equitynet have apps to help you
value your company
• Provides focus on Minimum Viable Product
• Democratizes the funding process
3. Crowdfunding – Rewards Based
Crowd Incentives
Crowd
Contributions
Identification
Funding
Emotion
Attention Created by
Influencers
Rewards
Buy-in Components
(relevant and synergistic)
(you can execute)
5. Start by Developing a Solid Business Model
customer
How You Make Money… Consists of these 9 Areas
relationships
key activities
value proposition
customer
segments
key partners
cost
structure
key
resources
channels
revenue
streams
Once you do this, you are ready to start Crowdfunding
7. Building a Crowdfunding Campaign
• Planning
• Campaign starts
months prior to launch
• Crowdfunding starts
with you, your family
and friends
• Must develop a social
media strategy
• There is no single
solution
8. Building a Crowdfunding Campaign
• Planning
• It Social
• Develop Email List
• Social Media
• Blogger & Publication
Outreach
• Schedule Press Release
9. Building a Crowdfunding Campaign
• Planning
• It Social
• Campaign elements
•Pre-Campaign
•Campaign
•Post-Campaign
10. Building a Crowdfunding Campaign
• Pre-Campaign
• It’s Social
• Awareness
• Project Management
• Production & Content
• Social Currency & Outreach
11. Building a Crowdfunding Campaign
• Pre-Campaign
• It’s Social
• Awareness
• Social Sharing
• Marketing Events
12. Building a Crowdfunding Campaign
• Pre-Campaign
• Campaign
• Post-Campaign
• Wrap-up & Assessment
• Program Implementation
• Fulfillment &
Communications
• Harvest Opportunity
14. Product Development
Product Launch
Post Implementation
Review
Ideation
NEW PRODUCT DEVELOPMENT
Preliminary
Investigation
Detailed
Investigation
Development
Testing
Validation
Full
Production
Market
Launch
Robert Cooper New Product Development Stage Gate Model
NEW PRODUCT LAUNCH
Adv/PR/Comm.
Selection & Planning
1
Launch Plan
Development
2
Market Evaluation
Tracking Research
Distribution Plan
Channel Mgmt Plan
3
Campaign &
Promotion
Planning
4
5
6
7
Critical Evaluation
Adv/PR/Comm.
Period
Promo
Execution
Schneider Associates New Product Launch Stage Gate Model
15. Product Development - Product Market Fit Validation
The Pitch
Project Name
Ideation
Project URL
Elevator Pitch
Preliminary
Investigation
Detailed
Investigation
Development
Testing
Validation
Phase 2 – Development &
Testing
Incentives (Rewards)
Funding - 30 Days - $35,000
Milestones
Full
Production
Market
Launch
Updates
16. Product Launch - Market Validation
Adv/PR/Comm.
Selection & Planning
1
2
Launch Plan
Development
Phase 3 – Launch Support
Costs
Incentives -
Funding – 30 Days - $45,000
Milestones
Market Evaluation
Tracking Research
Distribution &
Channel Mgmt
3
Campaign &
Promotion
Planning
4
5
6
7
Critical Evaluation
Adv/PR/Comm.
Period
Promo
Execution
Schneider Associates New Product Launch Stage Gate Model
Updates
18. A Pathway to Equity
• Think of it as your Capital Ladder
• Start with Rewards campaign to building economic and
brand value in the venture without sacrificing
ownership interests
• Gives you early market validation using your Minimum
Viable Product (MVP)
19. A Pathway to Equity
Jason Kulik, Elizabeth Kulik,
CoFounders Prohatch
“There have already been
companies on other CFPs that
have closed traditional rounds
following a successful reward
campaign.
We believe donation & reward
crowdfunding models will play
just as important a role in
strategic capital formation“
Ouya, a new open sourced gaming console
Funded a $8.6M rewards campaign
Garnered 60K preordered units
9 months later
Kleiner Perkins led an additional $15M round
Largest institutional investments in reward-based
crowdfunding campaign to date
20. Many Thanks!
ProHatch, www.ProHatch.com, is a responsible Crowdfunding incubator where Projects Hatch & Grow. We
connect people around their overlapping business, philanthropy and personal interests as they create, support
and fund responsible social impact, business and community development.
Platforms have formats that are investor friendly and takes the guess work out of what the investor wants to see.Crowdsourcing your product development Equitynet matches you to the industry and their software creates a valuation by pulling valuations from their sources as well as industry sources.Helps company focus on Minimum Viable ProductDemocratizes the funding process since practically anyone who believes in your company can take out their wallet and support you via a small loan, equity investment or a straight donation for a rewardTOC, 1 week: Melt Organics less than 6 monthsEyenalyze investors… 90% are multi-unit restaurant chains… which will be their customers upon product launch launch of our product will add enormous value to their business through the delivery of information they were not able to easily retrieve.
KickStarter pioneered approximately 5 years ago
Develop Email ListSocial MediaBased on audience, ID social media platforms to use, social circles to connect and engageSocial media strategy & road mapGoals & hold team accountableHow will you engage?Social Media Advertising OptionsBlogger & Publication Outreachbuild list of 20-25 influential bloggers in your industry to contactDraft and schedule Press Release
Develop Email ListSocial MediaBased on audience, ID social media platforms to use, social circles to connect and engageSocial media strategy & road mapGoals & hold team accountableHow will you engage?Social Media Advertising OptionsBlogger & Publication Outreachbuild list of 20-25 influential bloggers in your industry to contactDraft and schedule Press Release
Sharing Email, Facebook, Twitter etc.Develop drafts in advanceTry different ways of asking your audience to share Marketing EventIncorporate real-time events to build excitement
Sharing Email, Facebook, Twitter etc.Develop drafts in advanceTry different ways of asking your audience to share Marketing EventIncorporate real-time events to build excitement
Have each person plug in costs for each stage gate to illustrate phase to raise
Reward-based crowdfunding and the newly introduced equity-based models can be combined in a very effective crowdfinance capitalization strategy to leverage the benefits of a rewards campaign as a first capitalization step, building economic and brand value in the venture without sacrificing ownership interests, before adding new stakeholders with equity and debt. ProHatch calls this a new “capital ladder” that helps to take companies from ideation to exit. Deploying a reward campaign today gives entrepreneurs/startups/small businesses particularly consumer goods early market validation, good or bad with no loss of ownership. This is an ideal opportunity to build revenue, customers, credibility & brand, reducing risk in preparation of further traditional or crowdfinance equity & debt rounds. There have already been companies on other CFPs that have closed traditional rounds following a successful reward campaign. For example Ouya, a new open sourced gaming console powered by Android, funded a $8.6M rewards campaign with more than 60K preordered units. 9 months later, Kleiner Perkins led an additional $15M round which marked one of the largest institutional investments to go to a reward-based crowdfunding campaign to date. With other notable examples available, ProHatch believes donation & reward crowdfunding models will play just as important a role in strategic capital formation, and that belief has shaped our direction and the evolution of our platform. In offering every type of crowdfunding on ProHatch, we believe that companies will strategically choose the models that make sense for them.
Reward-based crowdfunding and the newly introduced equity-based models can be combined in a very effective crowdfinance capitalization strategy to leverage the benefits of a rewards campaign as a first capitalization step, building economic and brand value in the venture without sacrificing ownership interests, before adding new stakeholders with equity and debt. ProHatch calls this a new “capital ladder” that helps to take companies from ideation to exit. Deploying a reward campaign today gives entrepreneurs/startups/small businesses particularly consumer goods early market validation, good or bad with no loss of ownership. This is an ideal opportunity to build revenue, customers, credibility & brand, reducing risk in preparation of further traditional or crowdfinance equity & debt rounds. There have already been companies on other CFPs that have closed traditional rounds following a successful reward campaign. For example Ouya, a new open sourced gaming console powered by Android, funded a $8.6M rewards campaign with more than 60K preordered units. 9 months later, Kleiner Perkins led an additional $15M round which marked one of the largest institutional investments to go to a reward-based crowdfunding campaign to date. With other notable examples available, ProHatch believes donation & reward crowdfunding models will play just as important a role in strategic capital formation, and that belief has shaped our direction and the evolution of our platform. In offering every type of crowdfunding on ProHatch, we believe that companies will strategically choose the models that make sense for them.