CEO- ALEX FELDMAN
Introduction to CrowdFunding
1
crowdsunite.com
Credentials
 Six years in Investment Banking, MBA from NYU
 Founder and CEO of CrowdsUnite, largest user...
crowdsunite.com
Content
3
What is Crowdfunding
Industry stats
Different types of Crowdfunding
Tips for successful Crowdfun...
crowdsunite.com
Traditional
4
crowdsunite.com
CrowdFunding
5
Platform(Website)
Benefits
1.Validating the market
2.User Acquisition
3.User Marketing
4.Fe...
crowdsunite.com
Incentives
6
crowdsunite.com
Timeline
7
crowdsunite.com
Industry Growth
Millions($)
 “If U.S. families devote just 1% of their assets to investing in startups vi...
crowdsunite.com
Crowdfunding Market Size
300
120
2100
62
0
500
1000
1500
2000
2500
3000
USA Funding
Billions($)
Potential ...
crowdsunite.com
Crowdfunding Choices
10
Donation Reward Debt Equity Royalty
crowdsunite.com
Donation
11
Stats
Average raise – $1,400
Crowdfunding Industry size – $1.4
Billion in 2013
USA Donation In...
crowdsunite.com
Reward
Star Citizen - $26M, 291,000 people
$2M on KickStarter
51 projects over $1M,
in 2013 3 million peop...
crowdsunite.com
Debt
Raised $100M
Crowdfunding for un
accredited
13
$150M-$200M in business
loans in 2013
Total $2 Billion...
crowdsunite.com
Equity
14
$20M Raised for 20 companies
1753 companies looking for funding
Exchange for Funding
Ownership o...
crowdsunite.com
Royalty
15
Support local businesses
$7M VC funding
Invest in people
Exchange for Funding
Percentage of the...
crowdsunite.com
Campaign Building
16
Story
• Your credential
• Problem you solving and your solution
• Why you need the mo...
crowdsunite.com
Campaign Running
17
Promoting
• Start before the campaign
• Friends, family, local community, mailing list...
CROWDSUNITE
CEO- ALEX FELDMAN
Thank You
18
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Introduction to Crowdfunding

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Crowdfunding

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  • Banks act as middleman
    Being disrupted
    Use example of two people
    Model is broken, small business can’t get loan(stats)
  • Good for people
    Benefits use Pebble as example for benefits
  • Good for people
    Benefits use Pebble as example for benefits
  • Kiva – over $490M in loans, 99% repayment rate
    Prosper – In October did $50M origination and Lending Club - $223M
    Lending Club received $220M in financing
    Kickstarter – Over 50,000 projects received over $850M
    CircleUp - $20M Raised for 20 companies
  • Introduction to Crowdfunding

    1. 1. CEO- ALEX FELDMAN Introduction to CrowdFunding 1
    2. 2. crowdsunite.com Credentials  Six years in Investment Banking, MBA from NYU  Founder and CEO of CrowdsUnite, largest user review website in the world for funding platforms  Run monthly crowdfunding networking meetup in NYC with over 500 members, http://www.meetup.com/NYC-CrowdFunding- Networking  Taught workshop about crowdfunding at NYU  Spoke at panels in conferences  My articles have been featured on crowdsourcing.org and crowdfundinsider.com  Crowdfunded myself on Upstart  In the January issue of Entrepreneur Magazine 2
    3. 3. crowdsunite.com Content 3 What is Crowdfunding Industry stats Different types of Crowdfunding Tips for successful Crowdfunding
    4. 4. crowdsunite.com Traditional 4
    5. 5. crowdsunite.com CrowdFunding 5 Platform(Website) Benefits 1.Validating the market 2.User Acquisition 3.User Marketing 4.Feedback Challenges 1.Fraud 2.Failure over 50% 3.Need Crowd 4.Extrovert
    6. 6. crowdsunite.com Incentives 6
    7. 7. crowdsunite.com Timeline 7
    8. 8. crowdsunite.com Industry Growth Millions($)  “If U.S. families devote just 1% of their assets to investing in startups via crowdfunding, that would unleash a torrent of $300 billion annually.“ – Fred Wilson, VC at Union Square Ventures  “At the one-percent mark, globally this translates to more than a trillion dollar market.” – Kevn Lawton, author of the Crowdfunding revolution *Data from 2013 Massolution’s crowdfunding industry report 8
    9. 9. crowdsunite.com Crowdfunding Market Size 300 120 2100 62 0 500 1000 1500 2000 2500 3000 USA Funding Billions($) Potential – $2,500 Billion Reward Lending Equity Donation *Data from 2013 Massolution’s crowdfunding industry report 9
    10. 10. crowdsunite.com Crowdfunding Choices 10 Donation Reward Debt Equity Royalty
    11. 11. crowdsunite.com Donation 11 Stats Average raise – $1,400 Crowdfunding Industry size – $1.4 Billion in 2013 USA Donation Industry - $300B 10% of charities give less than 65% Skate Camp -$20,000 Exchange for Funding Thank You Platforms For Non-profits, philanthropic projects Sandy – 740 results Cancer treatment - $4,000
    12. 12. crowdsunite.com Reward Star Citizen - $26M, 291,000 people $2M on KickStarter 51 projects over $1M, in 2013 3 million people pledged $480M Excellent customer support Focused on Authors 12 Exchange for Funding Good or service For Pre-sale items, have large crowd, Projects Stats Average raise – $2,300 Industry size – $1.3 Billion in 2013 More than 50% fail to reach goal Platforms Local Businesses Open for everybody for anything
    13. 13. crowdsunite.com Debt Raised $100M Crowdfunding for un accredited 13 $150M-$200M in business loans in 2013 Total $2 Billion,140K loans Average interest rate over 10% Exchange for Funding Interest and principal For Need to have cash-flows and collateral, Get lower interest rate and faster approval than bank. Stats Average raise – $4,700 Industry size – $2.1 Billion in 2013 Platforms $50M in October, Overall $700M
    14. 14. crowdsunite.com Equity 14 $20M Raised for 20 companies 1753 companies looking for funding Exchange for Funding Ownership of business For Growing companies, Exit opportunity Stats Average raise – $190,000 Industry size – $165 M in 2013 Platforms $65M in collective investor interest Raised $23M $75M Investment Interest
    15. 15. crowdsunite.com Royalty 15 Support local businesses $7M VC funding Invest in people Exchange for Funding Percentage of the revenue For No bankruptcy risks, No equity loss, Pay only when you make money, Platforms
    16. 16. crowdsunite.com Campaign Building 16 Story • Your credential • Problem you solving and your solution • Why you need the money • Videos get double the amount. Duration •30 days better than 60 days Research – Look at similar campaigns on the platform you chose.(http://cf4all.com/) Rewards •Related to the funding goal, product itself works best •have unique rewards(limited edition products, meet the team) •Most common is $25, average is $75 •Have $1 for people who just want to support you Goal • Specific project goal • Ask for minimum that you need for the achieve that goal • Have stretch goals in place in case you go over the initial goal Tipping point •Have 30% pledged before you launch
    17. 17. crowdsunite.com Campaign Running 17 Promoting • Start before the campaign • Friends, family, local community, mailing list, linkedin group, meetups groups. Find where you ideal customers are. • Media, who is talking to your customers. Bloggers, newspapers, … • Social Media Communication •Send weekly updates to your backers Fulfillment •Make sure you can deliver on your rewards within the time limit •Communicate any delays with your backers •For large orders work with fulfillment centers
    18. 18. CROWDSUNITE CEO- ALEX FELDMAN Thank You 18

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