Ideavibes London Crowdsourcing - Crowdfunding - Citizen Engagement Workshop

Innovation and change through the crowd
Paul Dombowsky

Agenda / Highlights
11:00 - 11:30 Arrivals - Buffet Lunch - Networking
11:30 - 11:40 Introductions / Thank You
11:40 - 11:45 A word from our venue host - Tony Fish (AMF Ventures)
11:45 - 12:50 Workshop - Paul Dombowsky from Ideavibes
Highlights from the Crowdconvention
12:50 - 13:05 Tony Dhillon from GrowVC - overview of one, practical
example of crowdfunding
13:05 - 13:25 Question & Answer Period
13:25 - 13:35 Wrap-up
3

Thank you
Adam Cranfield - Consultant
Matt Ball – COO and Co-Founder
3

Our Venue Host
Tony Fish
3

Where does innovation happen?
Cities
Neighbourhoods
Government Depts.
Small businesses
Educational System
Social System
F1000 Companies
Non-profits
2

Our Bias
We see the crowd as having the knowledge, the power, the desire, and the ability to help you make better decisions, solve problems, and fund change or innovation, if given the opportunity.
2

Overview
2

Crowdsourcing
Defined
An engagement process whereby organizations seek input from either open or closed communities of people, either homogenous or not, to contribute ideas, solutions, or support in an open process whereby the elements of creativity, competition and campaigning are reinforced through social media to come up with more powerful ideas or solutions than could be obtained through other means.
Why Bother?
Organizations have a difficult time engaging with their communities to strengthen their relationship and be citizen/crowd focused. Internal or external, the community has ideas that can be harnessed that come from diverse backgrounds, experiences and education.
7

Participation Happens – Civic or Brands
5

Who is your crowd?
The crowd you know The crowd you don’t know
Social Media Makes the Connection
8

Who is your crowd?
CITY
Engagement
Targets
6

Where Innovation / Crowdsourcing Fits
8

Two Sides of Crowdsourcing
Citizen Engagement
Community / Civic / National
Market Engagement
Customers / Prospects / Partners
3

Where the conversations are happening?
Official & Unofficial
Google Groups
Wiki’s
User Groups
Podcasts
Blogs
User Voice
Epinions
Cnet
Reviewsarena
Buzzillions
Tribe Smart
Why not tap into the conversations that are already happening?
Get the crowd working for you.
8

The Promise of Web2.0
Web 2.0 is about 2 way conversations
Web based services and communities characterised by participation, collaboration and sharing of information among users online.   Web2.0 applications include wikis, crowdsourcing, blogs and social networking sites which encourage user-generated content (USG) and social interaction online.
8

Citizen Engagement
2

I have a challenge
18
Land use determination – who drives the agenda and the conversation?
Two approaches
Opportunity driven
Innovation driven
The difference lies in where the ideas come from
From the user or the customer
From the supplier

I have a challenge
19
Opportunity Driven (supplier)
Innovation Driven (customer)

Citizen Engagement in Web 2.0 for London 2.0
There are many one way conversations happening:
Blogs
Square Mile Blogger
Londoniscool
London Underground Tube Diary
Dave Hill’s Politics Blog
London Standard
Telegraph Blog
Podcasts
Dial-Eye-Lama
Editorial Intelligence
Make no mistake – your citizens want to be involved intransforming the City of today to City 2.0.
Where is the engagement? Where is the innovation happening?
Driven bySocial Media Platforms
4

Government as a Platform
Ideas and information produced by and on behalf of the citizen or the crowd
Crowd is empowered to spark the innovation that will result in an improved approach to governance
Move away from ‘Vending Machine Government’
Responsibility is shared between citizens and staff
20

NYC Example
NYC Citizen Engagement Program
12

SF Example
San Francisco Engage4change Citizen Engagement Program
(2 weeks)
No. of Engagements = 2252
Referrals = 64% from Twitter
Cost = 500 ice cream cones ($1,000)
HumphrySlocombe’s Crowd= 320,000 twitter followers and Facebook Friends
13

Market Engagement
2

What is Social Product Management?
The opening up of innovation to internal and external input for the development of products in various stages of the product development lifecycle.
Crowdsourcing can be part of an open innovation or social product management strategy.
5

Product Management Lifecycle
Capture new customers with options & features they are looking for.
Crowdsource Option: features & functionality
Crowdsource Testing – early adopters reward
Socializing requirements and prioritization gathering improves decision making
6

How Product Development Used to Happen
9

Social Product Development/Open Innovation
10

Build a Social Product Strategy
Reach customers & prospects where they live – join in the conversations that are happening already
Capitalize on valuable customer and prospect insight
Develop a culture of collaboration
Implement the right social technology to get the job done
Communicate results and intentions and be open as possible
Let conversations happen in the open
Be crowd friendly on an ongoing basis
22

Sources of Innovation
Does participation require a reward?
Do people contribute for the good of the brands they like?
How do you democratize the input?
11

Innovation: Crowdsourcing vs The Survey
9

Product Development - Branded
IdeaStorm was created to give a direct voice to Dell’s customers and an avenue to have online “brainstorm” sessions to allow them to share ideas and collaborate with one another and Dell. Their goal through IdeaStorm is to hear what new products or services you’d like to see Dell develop.
In almost three years, IdeaStorm has crossed the 10,000 idea mark and implemented nearly 400 ideas!
14

Product Development - Inventions
Quirky is an all in one product development shop for inventors.
15

Conference Agenda
Ignite uses crowdsourcing for the source and crowd directed agenda at an upcoming event.
16

Where does trust sit?
According to Forrester Research (2010),
71% of people say they trust the opinions
of family, friends and colleagues as a source
of information on products and services.
Their crowd or tribe.
7

It all starts with a Question or Problem
17
Needs to be:
Clear and compelling
Not leading
Allow for open innovation
Encourage participation
Allow for outliers to feel comfortable

The Appeal
Crowdsourcing surfaces new perspectives
Invites participation from nontraditional sources
Infuses real energy into the process of generating ideas and content
Empowers people when they feel their voice is being heard
Technology can enable participation by disenfranchised (ie. PCs in libraries/shelters with citizen engagement campaigns)
Builds engagement and relationships with new audiences
10

Crowdsourcing Pros and Cons
PROS
Reduced time to market
Reduced risk due to early customer input
Increased customer lifecycle value
Broader source of innovation
Strengthened brand through participation
Organizations can’t have all the brightest people on staff
Ideas don’t have to be discovered by internal R&D teams to be capitalized upon
Benefits from varied experiences
CONS
Less control
Needed trust not easily come by in some organizations
Requires community management
Suffers if crowd is too narrow
Disruptive to traditional timelines for product roll outs
First attempt is risky until you understand your crowd
Need to know your target audience
17

Things to Watch For
Excessive lobbying and promotion
Narrow crowds product narrow results
No follow-through causes creditability hit
If you say you are generating solutions for X, communicate what happened and why
Broad ideation campaign descriptions will result in less focused results BUT too narrow will restrict creativity
Dismissing ideas that seem far fetched
Ideation often requires refinement – understanding what your crowd is saying by ‘x’
11

What is Crowdfunding?
Crowdfunding(sometimes called crowd financing, crowd sourced capital, or street performer protocol) describes 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. Crowdfundingoccurs for any variety of purposes, from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company or small business[1] or creating free software.
21

Motivating Funding
Percentage of Ownership (regulatory backwater in most countries)
Percentage of profits
Rewards (points or the CD / Movie)
Tax receipt
11

Models
The Arts
Kickstarter
IndieGoGo
Start-ups
Peerbackers
GrowVC
Crowdforce
Ceedme
RocketHub
Fundedbyme
Charities
Fundchange
Crowdrise
Lending – Charities
Kiva
11

Example - Kickstarter
11

Example - Fundchange
11

Examples: Profunder (US only)
Funding source for entrepreneurs
Revenue Share
Debt
Equity
11

The Appeal
Uses social media to get the word out
Taps into your crowd and your crowd’s crowd
10

Benefits & Challenges
It’s social – the crowd promotes projects it likes
It’s social – the crowd won’t promote projects that aren’t shareable
Success comes to those that actively build a crowd
A challenge for organizations new to social media
It’s the free market at work
It’s the free market at work
Build stickiness to the project
Need to pay attention to write-up to inspire funders
12

Integrating Crowdfunding into Your Organization
Things to keep in mind:

Crowdfunding success comes quickest to organizations that are social –media-aware and engaged. If your organization is not yet social media-enabled, it will take time and human and financial resources to do so.
Because your efforts are only as good as the crowd you are able to mobilize to your cause, it makes sense that your organization strategically manages and promotes its brand online.
Make sure your target audience is online and will give online
If you opt to post your projects on established crowdfundingsites, do your homework – be careful of the company you keep.
13

How an Engagement Platform Works
22

A Platform Could Help
2

Ideavibes Citizen Engagement Platform
Easy to set-up and deploy
Able to run multiple campaigns at once
Can run Crowdsourcing and Crowdfunding Campaigns
Build stickiness and community around those that engage (sign-in and see past votes, comments, ideas)
Hosted solution (in Canada)
Able to be implemented on existing website or set-up in new, destination site
Social Media connected
One of few sub $1000/month solutions
21

How Does Ideavibes Compare?
Enterprise Collaboration or Idea Management
Large – multi-functioning platforms for Idea Management
Integrated into change management and process improvement lifecycles
Chaordix, Bright Idea, etc.
Middle-tier Focused Crowdsourcing Apps
Purpose-built customizable apps focused on crowdsourcing
Narrow or wide focus
Multiple crowdsourcing and crowdfundingcampaigns
Ideavibes, Spigit
Note – Ideavibes is only white label crowdfunding platform available
Ad-hoc website or Social Media widgets
Developed by web teams with basic functionality
Functionality as opposed to business process driven
24

Thank you
Paul Dombowsky | 613.878.1681 | paul@ideavibes.com
www.ideavibes.com

Grow VCEveryone Funding Startups
June 1, 2011

Vision
The next Silicon Valley is not a location, it is a platform and community on the Internet

Mission
Provide the platform, service tool kit and partner network for the Virtual Silicon Valley

Investment models
www.growvc.com
56
1. Community Fund
2. Private Investment
3. Work Investment
Startup selects the funding target
Members make micro-investments ($20, $50 or $100)
The funding target is divided into 10 parts; startups get money always when a 1/10 is full
Standard GrowVC investment agreement
GrowVC manages the investment
Startup selects the funding target
Members make investment proposals
Startup can accept or reject
Local law firm makes the investment agreement based on standard Term Sheet
The investor manages the investment
Startup makes an offer: competence, targets (hours/achievements), ownership  model to calculate compensation
An expert makes a proposal
Startup can accept or reject the proposal
Standard work investment agreement
Startup manages work and the expert the investment

WE HAVE A DREAM:
more equal opportunities,
where entrepreneurs
and ordinary people unite
to accelerate innovation

How to democratize startupinvestments: examples
A company like Facebook
A company collects totally $20M and achieves $10B valuation
If the company has 20 equal investors, each of them invested $1M and gets $500M in the exit
If the company has 100,000 investors, each of them invested $200 and gets $100,000 in the exit
A more typical startup
A company collects totally $3M and achieves $100M valuation
If the company has 3 equal investors, each of them invested $1M and gets $33M in the exit
If the company has 10,000 investors, each of them invested $300 and gets $10,000 in the exit
www.growvc.com
58
Which model has greater influence on people, business and economy

global
transparent
open
collaborative
efficient

1. P2P and Crowd-funding
via Community Fund investments

2. Match-making and negotiation toolsfor Private investments

3. Reward professionals
Work investment scheme

Browse investments when you have time
www.growvc.com
63

The Grow VC platform enablesmany models, example
www.growvc.com
64
Investment decisions:
Community
Co-investors have automated model with veto right
Direct investments
Community micro-investments
Support for investment process and materials
Start-upXXX
Community FundMicro-investments
Start-upYYY
Private investments
Start-upZZZ
Co-investors
Investment process:Managed by community

www.growvc.com
65
Initial growth: customer adoption
The first full service was launched on February 15, 2010
Statistics on April15, 2011:
Registered users: 8,256
Startups, total: 1,986
Startups, open funding round: 98
Total available capital: USD 16,668,175
Total requested capital: USD 20,021,502
Average monthly growth: over 400 new members a month

First local services:India and China
www.growvc.com
66
Top level local local teams: including VC and finance professionals,serial-entrepreneurs. Localized for the local needs and ecosystem.

Tony DhillonHead of European Operationstony@growvc.comTel (UK): +44 7961 848 586Skype: tony.dhillon10 - Twitter:@tdhillon10
www.growvc.com
Twitter: @growvc

Ideavibes London Crowdsourcing - Crowdfunding - Citizen Engagement Workshop

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