What kinds of entity are you?Nonprofit?Gov?For profit?FoundationFunder/investor (current or aspiring)Interested person Goals for today?Understand crowdfunding/how it works?Find a platformAsk questions of people who’ve done crowdsourcing?Other?Used crowdfunding?Investor?Investee?
Lot’s of similar words:Crowdsourcing….Microfunding…Microlending…Microphilanthropy…Fundamentally, it’s about pooling resources to do something that matters to the funders (the “crowd”)It’s as old as the hills…“Barnraising”Ye Olde Patronage system (in the arts, this is sometimes called micropatronage)Destination DIY show – “Partner” (Jamaica), La Tienda, SuSuCredit unions
JOURNALISM, MUSCI ART – INDUSTRIES WHERE THE PRIMARY BUSINESS MODELS ARE BROKEN
What’s different today? Why is this emerging now?Answer that technology makes it possibleAnd the need and desire for alternatives to traditional funding mechanisms and institutions makes it desireable.Old conditions: part of community, trusted intermediary, cultural familiarityBut, people move (no longer part of community), makes trusted intermediaries hard to find,But technology enables two things: people can connect to one another and they can make their interactions transparent.These are excellent conditions for crowdfunding to take off.And it has.Not just supporting project, changing the world. Giving people different options.Chris Anderson – we’re learning/and teaching each other to do this.
Here’s what Wikipedia says about crowdfunding<br />Crowdfunding: The collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations. <br />“Crowdfunding is a collaborative funding model; many people give smaller amounts of money to make big things happen.“ Slava, IndieGoGo<br />
DOES IT WORK?<br />$80M pledged to date ($35M on Kickstarter) (Source: @RobertAndrews, Jan 2011)<br />Pulls new funders into market<br />Fills a gap in investment market (under $10K)<br />Creates relationships between investees + investors, and investees and each other (but also creates challenges)<br />Leverages ‘alternative currencies’<br />“Jury is out”<br />
JOSH TETRICK, 33 NEEDS<br />WHY 33 NEEDS?<br />WHAT DO GOOD PROJECTS DO THAT HELPS THEM SUCCEED?<br />WHAT DOES “SELFLESSNESS IS PROFITABLE” MEAN?<br />STATE OF CROWDFUNDING?<br />ADVICE TO ASPIRING PROJECTS, ENTREPRENEURS, INNOVATORS?<br />
Paul Osterlund: Abundance Farming and ChangeXchange<br />Springboard Innovation began CXc on-line seed-funding for social innovators in April ’09.<br />Designed to enable a new breed of citizen social innovators; providing start-up funds for new and proven social ventures, from ‘investors in sustainable change’ @ $5 per share.<br />Funding financially sustainable social enterprises; nonprofits with a plan for self-sufficiency. <br />Infrastructure supporting the 5th Space:<br />Mission Money<br />GOVERNMENT<br />BUSINESS<br />NON-PROFITS<br />ACADEMIA<br /> SocialEntrepreneurialVentures<br />Communication Influence<br />Information Research<br />Knowledge Benefit Many <br />
www.thechangexchange.org/<br />CXc soon to release new engineering, images, profiles for listers…new funding partners.<br />CXc invites listers to apply - new start-up ventures, those replicating successful models, and established non-profits adding a sustaining strategy…and now B-corporations.<br />Submit your profile summary<br />Review CXc legal agreement<br />Q & A / discussion…<br />Contacts:<br />firstname.lastname@example.org<br />email@example.com<br />