Business drivers Only 1%of applications for financial funding by new businesses and projects get funded by angel and venture funds. main reasons for unsuccessful applications: Lack of proof of concept and/or established customers Poor business plan No / Limited experienced management team 36% drop in global VC funding between 2009 and 2008 (Source Dow Jones VenturesSource) $29,6 billion in 2009 $46,5 billion in 2008 Changing pattern Support existing portfolio Fewer, larger deals Less risk, closer to profitability Increased syndication
Mission statement BelieversFund wants to provide collectively sourced funding and sales support towards start-ups and early growth companies in the mobile, web and gaming industry.
The Crowdfunding-principle Crowdfunding = the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations Investors analyse, challenge and fund a project, business, …by pledging pre-orders, debt finance or equity finance. Project owners present the project and promote it. They get the collected funds fromonly if the target amount is reached within the defined time period. Financial partners get access to pre-screened projects that can apply for funding.
Crowdfunding in the financing cycle Crowdfunding is an additional financing method for businesses. It allows a quick feasibility-check of the project, prior to application for additional funding with structural partners
The Concept Crowdfunding Believers Project owners GET FUNDED By offering attractive pre-order terms Terms are defined per milestone Only if milestone-target is reached GET GREAT DEALS Bypledging pre-orders Per milestone Only if milestone-target is reached 1 to 4 months – 5K€ to 100K€ Crowdselling Project owners Believers GET SALES 70% of all sales on BelieversFund GET COMMISSION 15% of sales on BelieversFund for supported projects
The road to funding Request Publish Communicate Fund Project owner request: Definition target budget Definition funding period Definition milestones Defenition pre-order conditions per milestone BelieversFund: Screening of relevance, realism, commitment Project owner: Provides compelling publishing content Project owner’s network Believers’ network BelieversFund’s
Market focus - Products MOBILE APPLICATIONS GAMES 350.000+ apps for all platforms FC revenu 2010: $6,8 Bn CAGR : 35% till 2014 Social / Casual / Mobile / Skill games FC revenu 2010: $5 Bn CAGR : 15% till 2014 CLOUD APPLICATIONS ONLINE BUSINESSES CRM / Collaboration / Office Suites FC revenu 2010: $10 Bn CAGR : 17% till 2014 Niche portals and networks E-commerce / M-commerce Online business concepts
Market focus - Regions BE / NL / UK Central Europe N-America India
Marketing the eco-system Projects Believers Social Media Developer platforms Collaborative platforms Professional networks Mobile marketing agencies Investment portals, brokers Digital natives 18 to 40 years old Always connected Innovators, technology geeks Gamers Database Marketing BelieversFund Community Managers BelieversFund Community Managers Referral Agreements Financial partners Incubators Technology angels Seed funds, venture funds
Spreading the word Social Media Project Owners leverage the power of different social media channels to create visibility for their funding project. Friends on Facebook, followers on Twitter, readers of blogs, connections of niche social networks Believers create a maximum of buzz to help realizing the funding, and get the deal. Database marketingactivating believers and project owners Community Managers Employed by BelieversFund Virtual teams per region Assigned to projects Use social media to help projects get successfully funded Partner and referral agreements with financial partners, incubators, research institutes, …to create visibility for project owners
Pricing and terms Campaign deposit 49€/ $69 to get a project published 100% refund when reaching milestone successfully funded Success fee 8% on collected funds forsuccessfully funded projects Sales revenue-split 70% of sales revenue for project on BelieversFund to project owner 15% to believers, 15% to BelieversFund Non-exclusive sales agreement
Platform preview Compelling and complete project presentation Easy tracking of progress and funding Easy interaction with community through Facebookj/Twitter Connect Wiki content share with major networks (FB, Twitter, MySpace)