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Crowdfunding presentation at ESparkUK

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Crowdfunding presentation at ESparkUK

  1. 1. CrowdfundingEntrepreneurialSpark 8th March 2012 @twintangibles#crowdfundingES
  2. 2. Agenda• What is Crowdfunding?• How is it linked to social?• Advantages, disadvantages & examples• What is typical?• How to be successful• Kirsty Burnham - SoLoCo• Q&A
  3. 3. What is Crowdfunding?
  4. 4. What is Crowdfunding?“Crowdfunding is a method of raising capital, or resources, by collecting together lots of small amounts from alarge number of people generally using the Internet and social media.”
  5. 5. Obama 2008 Campaign $264.5M Total <$200 $122 $88.2m $27.7m Obama McCain www.xplane.com/obama
  6. 6. Brewdog 1st round: 2nd round: • 10% Firms • 8% Firms Equity Equity • £95 per share • £230 per • 5000 investors share • 90% sold in 3 months•First time any • 1300 • £1m investment in lesscompany in Europe had investors than 2 weeks.attempted to raise • 20% off in • £95 to £12k individualmoney via an online the shop! investmentsshare offering
  7. 7. All or Nothing Reward Based Take it All Holding Model CrowdfundingPlatform Models Equity Based Club Model Micro-lending Micro-finance P2P
  8. 8. Where is it Used?Source http://www.core77.com/blog/kickstarter/crowdfunding_revolution_should_i_do_this_21697.asp
  9. 9. Crowdcube Source: www.crowdcube.com
  10. 10. How is it linked to social?
  11. 11. PopularityValue The Long Tail Quantity Products
  12. 12. Re-imagine Yourself ?£
  13. 13. Viral Reach
  14. 14. Expectation of Return• Non-traditional• Brand loyalty• Less aggressive?• Longer term? Coase’s Penguin – Yochai Benkler
  15. 15. Advantages, disadvantages and examples
  16. 16. Advantages• Market testing• Distributed cognition• Not just cash• Small sums quickly available• Brand advocates• Increasingly a location for VCs• Stable investment• Expectation of return
  17. 17. Disadvantages• It doesn’t always work• Damaging?• It’s not free• It is not a panacea• How will other investors view it• Administration cost
  18. 18. Printrbot – 3D Printer •$25,000 Goal •Avg. donation $460 •17 Reward categories
  19. 19. The Bicycle Academy •£40,000 Goal •9 Reward categories •Funded in 6 days •Campaign Build- up/Preparation time: 5+ months
  20. 20. What is typical?
  21. 21. So what is typical? Successful Pledged Projects Backers Avg # backers Avg Project Value Avg Pledge ValueFilm & Video $32,473,790.40 3,284 308,541 94 $9,888.49 $105.25Music $19,801,685.21 3,653 260,178 71 $5,420.66 $76.11Design $9,180,637.55 319 99,923 313 $28,779.43 $91.88Art $5,900,166.14 1,172 78,558 67 $5,034.27 $75.11Publishing $5,134,388.55 774 74,280 96 $6,633.58 $69.12Technology $4,673,470.41 125 39,341 315 $37,387.76 $118.79Theatre $4,051,962.62 931 50,144 54 $4,352.27 $80.81Games $3,616,530.88 253 45,622 180 $14,294.59 $79.27Food $2,809,503.31 241 30,682 127 $11,657.69 $91.57Photography $2,116,261.93 343 26,897 78 $6,169.86 $78.68Comics $1,763,628.48 267 27,544 103 $6,605.35 $64.03Fashion $1,351,659.85 182 16,793 92 $7,426.70 $80.49Dance $1,054,763.95 292 14,377 49 $3,612.21 $73.36 Source: www.kickstarter.com
  22. 22. Source: www.crowdcube.com
  23. 23. How to be successful
  24. 24. Relative Success Kickstarter fundit.ie100 44% 75% 0
  25. 25. Keys to Success
  26. 26. Keys to Success
  27. 27. Keys to Success
  28. 28. Keys to Success• Be Social Media ready• Have a plan and prepare• Don’t forget your offline community• Select your project carefully• Select your platform carefully• Develop your rewards• Create your pitch• Select your channels• Develop a publishing plan• Define and allocate the resource and skills required• Get advice• Get legal advice
  29. 29. Tim Wrighttim@twintangibles.co.uk @twintangibleswww.twintangibles.co.uk twintangibles 2012
  30. 30. Kirsty Burnham

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