Crowdfunding is actually REALLY oldCrowdfunding occurs when your supporters work together with you or on their own to fund a project .They become advocates for you to their friends and family.Existing peer-to-peer fundraising i.e. at events (runs, walks, rides, etc.) is a simple form of crowdfunding if the participants are actively raising money for youA recent innovation is tying social fundraising and crowdfunding together to reach deeper into the social networks of your supporters and make it easier for them to help you raise money.
Four broad categories of companies providing crowdfunding systems There have been over 500 new startups in the crowdfunding space in the last two years and we are only just getting started.Gift: 49%Rewards: 11%Debt: 22%Equity: 18%What’s the biggest myth around crowdfunding?
My company partners with Facebook, PayPal:Facebook Timeline launchPayPal Adaptive APIs launches30,000 campaigns Raised 10s of millions of dollars for our customers
The project broke the record back-to-back by building on an established history of industry acclaim.
This is obviously not the case except in very rare situations.Think of crowdfundingthis way – it is kind of like dating.It requires etiquette + properly managed expectations.If you shout at everyone you meet, it is hard to have a conversation and even harder to get them to like you.This is how many people approach social media – warning - you are just being annoying“real” conversations = deeper connectionsWhen people have a deeper connection, they are more interested and motivated to help you.Most crowdfunding requires real conversations and real connections to be successful.
A Like button does not make your campaign social.It is a single level of sharing i.e. you can get your supporters to like your campaign but it has a very low chance of ‘going viral’.We want campaigns to ‘go viral’ because that is how you reach new supporters and expand the potential for you to raise more money.Use INTERACTION with your campaign – get them to comment – drive your message deeper into the social networks of your supporters - reach new people.Commenting like this influences Edge Rank and makes your campaigns more visibleTakeaway: Liking something is not enough – give your fans a chance to interact with each other via content
Startup Weekend UBC Crowdfunding workshop by FundRazr
How does pre-ordering work? The power to bring a product or startup to life overnight For creative projects, products or entrepreneurs -> backers expect something in return for their contribution Pay Now Get first-in-line and/or Exclusive rewards Now + Product/Creative work upon release
Stick-N-Find RewardsUltra small Sticker w/ Bluetoothstick on anything and find w/ yourSmart Phone (Apple & Android).Money Raised: $931,970Goal: $70,000Perks:1. $65 Early Bird - 4 Stick-N-Find Bluetooth Stickers (will sell for $89.95 retail)2. $90 Early Bird - 6 Stick-N-Find3. $150 Early Bird - 10 Stick-N-Find
Rewards - Best Practices1. Enhanced versions of the product • Autographed, deluxe, director’s cut and collector’s editions2. Swag • Posters, stickers, t-shirts, caps etc. that commemorate a project3. Make backers part of product • Allow backers to be a character within the narrative, soundtrack or action1. Opps to affect project’s outcome • Allow backers to suggest how stories develop, what’s included in finished package or featured subjects or locations2. Give contributor credits • Thank backers publicly within the product itself (liner notes, book or game credits) or shout-outs (social media)3. Exclusive access • Meet/interact with creative team behind projects, or related notables (e.g. actors, directors, musicians, artists)
StarForge Game RewardsA game of gathering resources,building bases, crafting and survivingon an alien planet. (Inspired by Halo,Minecraft…)Money Raised: $135,453Goal: $75,000Perks:1. $15 - Finished Game + Access to Alpha/Beta + Bronze Online Badge2. $250 - Name a Weapon and be Immortalized Forever!3. $1000 - Have a Landmark Named After You (NPC town, mountain, landing site) and Become a Legend!
Anomalisa Film Rewards1. Pledge $50 - DVD copy of film once distributed2. Pledge $100 - See your name in lights3. Pledge $250 - Exclusive Studio Tour during filming z + 1 "Weeklies" Screening of Anomalisa (w/ Cast and Crew)
Create a Startup Weekend UBC FundRazr1. Start (Base FundRazr) Customize2. Tell your story3. Launch!4. Use built-in tools -> Share widely!5. Thank supporters6. Post story updates7. Follow built-in coaching Stories will embed on website