57 from NA. or 837 m, 583 m europe\n\nEquity-based crowdfunding, in which funders get a stake in the company, raised the most money per campaign in 2011. This sector grew at 114 percent compound annual growth rate (CAGR). Donation-based crowdfunding projects, where contributions went towards a charitable cause, raised the most money overall, $676 million.\n\nequity based and lending based is best for digital goods (software film music. Raised the most money per campaign.the largest sum of money per campaign.Donation-based and reward-based crowdfunding for cause-based campaigns that appeal to funders&#x2019; personal beliefs andpassions perform best (e.g., environmen\n\n\n\n\n
Prizes, Crowdfunding & Equity Crowdfunding Oh My
?Prizes Equity Perks-based Crowdfunding? Crowdfunding ? Government Grants? Banks? Philanthropy/NonProﬁt Grants? Venture Capital? Employment? 3 MASSIVE FUNDING OPPS IN 3 MINUTES EACH L. THORELL | INNOVATINI.COM
AGENDAThe opportunityHow big it isWhich opportunity best ﬁts who you are.
PEOPLE YOU’D NEVERThis%isn’t%an%unusual%result…% SUSPECT SOLVE PROBLEMS Folditgame Discover%the%structure Problem: Discover the %an%enzyme%involved%i structure of an enzyme involved in the Reproduc:on%of%the%% reproduction of the AIDS AIDS%virus% virus. %Participants: Hundreds, but a core 20+ solved Par:cipants:%Hundred %but%a%core%20+%solved Non-experts in biochemistry! % Time to solve: 3 weeks Solved:%3%weeks%
PLACES TO FIND PRIZE CONTESTSMcKinsey’s “The Winner is” ReportChallenge.govPrizes.orgIdea BountyNaming ForceSquad HelpPicky DomainsCrowdspring
NOW OPPORTUNITIES • $250,000 • Get 250 social votes on your business plan to qualify • Deadline: June 30 • $20,000 of ﬁve $20K prizes • Best actionable idea for a Facebook platform to deliver a human rights, human development or social good outcome. •Deadline: Aug 15
HOW BIG IS IT?Prizes of >$100K have grown 15x over the past 35 years.McKinsey estimates The Prize Sector is worth $1 Bn - $2 Bn.
WHAT MAKES IT KICKASS? • It’s a new, highly trafﬁc social channel • Large bizarre of innovative social cause and innovative projects • Very likely serendipitous 4 encounters • Compelling psychology of “All or None” funding
TACTICAL ADVICE FROM ANEXPERTBrian Meece, CEO ofRocketHub Brian Meece, CEO of RocketHub
BRIAN’S ADVICEStart by winning followers for your project.Shift communications as needed.Use local & regional connections for support.Finish strong. End with a harder sell - “last chance” “If you hit 20-35% of your funding, there’s a 90% chance you’ll reach 100%.”
HOW BIG IS IT?• $1.47 Bn in 2011• 452 crowdfunding platforms Source: Massolution, Crowdsourcing.org 2012
IT’S ILLEGAL TODAY“...you can go to Las Vegas and lose $10,000 at the table inan hour but you don’t have to be an accredited gambler todo that.” Steve Case
TIMELINE1933: Securities Exchange Laws createdMarch 2012 Bipartisan vote by House & SenateApril 5, 2012: Obama signs JOBS ActYet to come: Reg D changes, more rule-makingEquity Crowdfunding ETA: Dec 2012? March 2013?
WHAT ARE THEY WORRIED ABOUT?Scam & Fraud Crowdcube [UK] :Zero scams/ zero fraud. RocketHub: Zero scams/ zero fraudAngelslist.com: Zero scams/ zero fraud Prosper.com: Zero scams/ zero fraud
JOBS ACT- CROWDFUNDING BASICSFunds Seeker must be incorporated.Funds Seeker must use a crowdfunding portal...Investment Cap Max: $10,000 per investorCrowdfunding Cap/Company: $1 M/year Currently, serious paperwork: $100K-$500Krequires CPA-sanctioned ﬁnancial statements; >$500Krequires full blown audit.Currently, crowd portals not required to supportinteraction/feedback between seekers & investors.
WHY THIS IS EXTREMELY COOL FOR FLORIDA California Florida 1,147 deals 30 deals 2009 Venture Capital $8,800,000,000 $235,061,300“Florida does all year in venture capital what California does in a few days” Robert Trigaux Tampa Bay Times Venture columnist
HOW BIG COULD IT BE? Total U.S. Total Long-Term Savings VC Investment Today of Americans Today - $30 Trillion ($26.2 Bn 2011)If Americans diverted 1% of their long-term savings to [crowdfunding], that sumwould be 10x the total annual VC investment in the U.S.” Amy Cortese, author of Locavesting
SMART THINGS YOU CAN DO NOWDress rehearse on a perks-based crowdfundingplatform - learn the ropes.Read the RocketHub White Paper written for theSEC for a 2012-2014 roadmap.Track the activities of the Crowd Funding ProfessionalAssociation (CFPA)
WHAT’S YOUR STYLE? Perks-based Equity-based Prizes Crowdfunding CrowdfundingSize of Project Short-term Project CompanyMarketing effort It’s done for you. Very high Very high +Financial Mechanistic; readyAnalytical effort Low knowledge; need to engineer it experts Virtuoso in ﬁeld Full-ﬂedged Hi imaginationPersonality Type or cross-ﬁeld imaginative, social Highly social hybridizer team Group Type Indie or Solo or group Company, lawyer collaborative indie (& CPA)
It’s the end of the world as we know it, and I feel ﬁne... R.E.M. delicious.com/lthorell Crowdfunding StackLisa Thorell Innovatini. com firstname.lastname@example.org @lisat2
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