These slides explain the mechanics of how crowdfunding works and how you can benefit from it. The slides guide you through the process, from creating the actual project to getting the funding you need.
Founding and Launch• Rock The Post was founded in October 2010.• Rock The Post was launched in November 2011.
Where did the idea come from?• Gap in the market• Entrepreneurs and small businesses had difficulty gaining access to capital.• 98% of the time, VC’s and Angel Investors would reject business plans.• Seed stages are funded mainly by friends and family.
Definition of crowdfunding Crowdfunding is a collective cooperation, attention and trust by people who network and pool their money to support efforts initiated by other people or organizations.
Alternative way to fundraise • Rock The Post is just like traditional fundraising. • Via crowdfunding, project creators are able to reach the crowds with built in social media features. • 25-40% of the traction comes from your inner networks, such as friends and family.
Mechanics of crowdfunding 1. Registration 2. Project creation 3. Approval process 4. Post is published 5. Marketing efforts 6. Target is successfully reached
Psychological component People pledge for 3 reasons: 1. People connect with the message 2. People connect with the uniqueness in which you raise the funds 3. People connect with the rewards
Mistakes that lead tocrowdfunding failure• Not nailing the presentation• Not doing enough research• Weak planning ahead of time• Lack of a solid marketing plan• Asking for the wrong amount of money• Failure to promote• Ignoring the audience
Why is crowdfunding goodfor companies ramping up?1. Free marketing2. Feedback or comments from other members3. Funding
Tax implicationsDid you think Uncle Sam would giveyou a pass?3 categories of tax:• Sales Tax• Income Tax• Gift
Target the right audience• Who will you target?• How do you relate to them?• How will you engage them?Note: Make sure that your post is geared toward to theright industry, and that your marketing efforts stay aligned.
Having an awesome visual pitch • The first 30 seconds is your chance to shine. • With the video, you will raise 10 times more money. • Keep it to 2-3 minutes maximum.
Clear description of the project • Introduction • Overview of the project • Include team members, if possible • Long-term goals • Presence on the web (social media website URL, etc. )
Setting reasonable goals• Reasons for starting the campaign• Targets to achieve (weekly/monthly)• Be realistic with your numbers• Outline steps that will help you to meet the objectives
Offer enticing rewards• What will you give in return for their pledges?• Will it be enough to turn heads?Note: Offer cool tangible rewards in order toincrease pledges and traffic to your post!
Launching the campaignNow is time to start spreading the word:1. Friends2. Family3. Colleagues4. Social media5. Link to your project under your email signature6. Target media publications
Strategy• Find evangelists to help spread the word.• Know what media publications you will target and who to contact.• Put all the email lists and contacts all together so that you can start the email blasts right away.
Channels for spreading the word • Email blasts • Speaking engagements • Forums • Affiliate with associations and organizations • Press release • Blog writing • Community • Widget on your website bulletin boards • Meetups and other • Social media events
Passion and energy• Don’t be shy• Open yourself to the world• Believe in yourself in order to have others believing in you• Have a compelling story• Show off your knowledge within the field of your post
Comments• Questions• Feedback• Criticism• ComplimentsNote: Avoid taking them personally!
MessagesPurpose: Remember to be:• One to one • Responsive communication • Reliable• Personal level • True to the people communication with who cared about your supporters your project
Engagement with your fans • Constant updates • Keep supporters updated with your progress • Keep your word • Be honest Note: After all, what’s crowdfunding without the crowd? ! Keep your crowd happy!
What does it mean for crowdfunding?• Before the JOBS Act, only accredited investors (1% of the US population), had access to investing in startups• Crowdfunding is the solution to help small businesses lift up the US economy by having accredited and non accredited investors be part of private offerings.
Why are small businesses are so important? • They pay 44% of total U.S. private payroll. • Small businesses generated 65% of net new jobs over the past 17 years. • They hire 43% of high tech workers.
Q&A?• Send us your questions by chat• Or email Tanya at email@example.com
Thank you for attendingFor further questions or commentsplease contact Alejandro Cremades firstname.lastname@example.org Tanya Prive email@example.com