2. @ACrowdExpert
Background/history
Donation crowdfunding in 1700s & 1800s for loans to
Irish farmers
1885 Statue of Liberty – 160,000 contributed £100,000
to complete it
1997 US Marillion fans financed a reunion tour $60k
2000 Artistshare
2008 Obama Election Campaign $750m;
o $600m from 3m - avg donation $86
2009 Kickstarter launched
Largest raise Aug 2014 – Coolest Cooler $13m…target
$50k! 62,000 backers! Retail $299; Reward $200
3. @ACrowdExpert
Who are the crowd?
4 or 400 or 4,000
Individuals or institutions
Local authorities
UK government
Are all investing in
crowdfunding projects!
4. @ACrowdExpert
Some terminology
Platform – the site that provides the technology
& manages the regulation and logistics to
promote the project
“All or nothing” or “Keep what you raise”
o Most UK sites are ‘all or nothing’
Types of crowdfunding
o Donation eg yimby (owned by Just Giving)
o Reward eg crowdfunder, kickstarter, indiegogo
o Equity eg Crowdcube, Seedrs, Angels Den
o Debt/Peer2Peer eg Funding Circle, Market Invoice
5. @ACrowdExpert
How crowdfunding platforms work
Online, sometimes offline too
Pitch using their forms, sometimes upload
business plan own format
Video
Forum for Q&A
Auction
Investor/lender can set parameters to autorun
or can view individual proposals one by one
6. @ACrowdExpert
A perfect storm?
Why has crowdfunding become so successful?
1. Lending environment for businesses
2. Poor economic market for savers
3. Technology advances of platforms/auctions
4. Power of the ‘crowd’ & social media
7. @ACrowdExpert
Where in the world?
Platforms – 1,000 worldwide across 27
countries
Reward - US are the leaders in this type
Equity – still fairly new in US; UK are leaders
Debt – UK are leaders
8. @ACrowdExpert
Which platform for you?
• Start-ups – typically Donation or
Reward but need to be able to offer
some consumer-appealing rewards
• Equity – often for early stage where
concept proven, but growth finance
needed
• Debt – for established businesses
• Download the free CFN
CrowdFunding Options App for more
platform ideas
9. @ACrowdExpert
Tips for a successful project
1. Choose the right platform – take advice! (find
expert adviser on www.TheCFN.org.uk)
2. For Debt platforms – ensure you comply with their
requirements
3. For Equity & Reward platforms:
o Build your own crowd in advance of pitch going live;
o Have a social media strategy to promote before & during
pitch;
o Have a great video – suitable for crowdfunding;
o Build appealing rewards;
o Use experts for the best advice!
