4. Crowdfunding:
The
collec2ve
coopera2on,
a7en2on
and
trust
by
people
who
network
and
pool
their
money
and
other
resources
together,
usually
via
the
Internet,
to
support
efforts
ini2ated
by
other
people
or
organiza2ons.
“Crowdfunding is a collaborative funding model; many people give smaller
amounts of money to make big things happen.“ Slava, IndieGoGo
7. =
Fund
my
business
=
Fund
my
crea2ve
project
=
Fund
my
social
venture
8. =
Fund
my
personal
cause
=
Fund
my
personal
project
or
ac2vity
=
Fund
my
need
9.
10.
11. $80M
pledged
to
date
($35M
on
Kickstarter)
(Source:
@RobertAndrews,
Jan
2011)
Pulls
new
funders
into
market
Fills
a
gap
in
investment
market
(under
$10K)
Creates
rela2onships
between
investees
+
investors,
and
investees
and
each
other
(but
also
creates
challenges)
Leverages
‘alterna2ve
currencies’
“Jury
is
out”
13. WHY 33 NEEDS?
WHAT DO GOOD PROJECTS DO THAT
HELPS THEM SUCCEED?
WHAT DOES “SELFLESSNESS IS
PROFITABLE” MEAN?
STATE OF CROWDFUNDING?
ADVICE TO ASPIRING PROJECTS,
ENTREPRENEURS, INNOVATORS?
14. Springboard Innovation began CXc on-line seed-funding for social innovators in April ’09.
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.
Funding financially sustainable social enterprises; nonprofits with a plan for self-sufficiency.
Infrastructure supporting the 5th Space:
Mission
Money
NON-‐PROFITS
BUSINESS
Social
CommunicaEon
Entrepreneurial
InformaEon
Influence
Research
Ventures
GOVERNMENT
ACADEMIA
Knowledge
Benefit
Many
15. www.thechangexchange.org/
CXc soon to release new engineering, images, profiles for listers…new funding partners.
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.
Submit your profile summary
Review CXc legal agreement
Q & A / discussion…
Contacts:
paul@springboardinnovation.org
amy@springboardinnovation.org
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.