Trampoline Crowdfunding Presentation (Minibar London, 29 Jan 2010)

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Slides from Charles Armstrong's presentation at Minibar London on 29 January 2010. More info:
http://crowdfunding.trampolinesystems.com
Follow Trampoline: http://twitter.com/tramp0

Published in: Economy & Finance, Business
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Trampoline Crowdfunding Presentation (Minibar London, 29 Jan 2010)

  1. 1. Crowdfunding<br />New financing choices<br />for growth ventures<br />
  2. 2. I’m Charles Armstrong<br /><ul><li>Ethnographer & business innovator
  3. 3. SPS at St John’s College Cambridge
  4. 4. CEO of Trampoline Systems
  5. 5. Social analytics for enterprises
  6. 6. IDC Top 10 Innovators (2009)</li></li></ul><li>Established finance routes<br />
  7. 7. Spin the wheel<br /><ul><li>Venture capital
  8. 8. Friends & family
  9. 9. Angel investors
  10. 10. Loan finance</li></li></ul><li>Problems with VC<br /><ul><li>Preference stock
  11. 11. Increased complexity in governance
  12. 12. Stealth control
  13. 13. Hostage to fund’s life-cycle</li></li></ul><li>The current crisis in VC<br /><ul><li>30% decline in aggregate global investment since 2008
  14. 14. Fewer deals, larger average size
  15. 15. Focus on seed & post-breakeven
  16. 16. Need to prop up existing portfolio</li></li></ul><li>Crowdfunding<br />
  17. 17. What is crowdfunding?<br /><ul><li>Uses the internet to scale private investor model
  18. 18. More investors, smaller stakes
  19. 19. Transparency instead of secrecy</li></li></ul><li>The rise of crowdfunding<br /><ul><li>Term appeared in early 2000s.
  20. 20. First wave in media industry (egsellaband.com, ageofstupid.net).
  21. 21. Second wave in non-profit world (egkickstarter.com).
  22. 22. Third wave in journalism (egspot.us).</li></li></ul><li>Trampoline case study<br /><ul><li>Raised $6m from VC in 2007.
  23. 23. VC withdrew from market in 2008.
  24. 24. Bad time to bring in new VC.
  25. 25. Became first crowdfunded tech venture.
  26. 26. Raising £1m over 12 months, first tranche closed October 2009.</li></li></ul><li>Pros & cons<br />
  27. 27. Benefits<br /><ul><li>Simplified governance & equity structure.
  28. 28. Freedom from VC market cycles.
  29. 29. Larger pool of expertise & networks.
  30. 30. EIS benefits for UK taxpayers.</li></li></ul><li>Difficulties<br /><ul><li>FSA regulations are a minefield.
  31. 31. Making a mistake could put you in prison or bar you from directorship.
  32. 32. Need to speak to a lot of people.</li></li></ul><li>My advice to you<br />Be as innovative in your financing as your are in your business<br />
  33. 33. Case studies & background<br />crowdfunding.trampolinesystems.com<br />
  34. 34. Visit our new co-working space in the centre of Shoreditch!<br />thetrampery.com<br />
  35. 35. This is me<br />@car0lus<br />charlesarmstrong.net<br />

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