“the act of an institution taking a function
once performed by employees and
outsourcing it to an undefined (and
generally large) network of
people in the form of
an open call.”
– Jeff Howe
“the practice of funding a project or venture by
raising many small amounts of money from a
large number of people,
typically via the
How does it work?
O April 2012, Obama
passed the JOBS Act O Investment (equity)
O Eased federal laws to model not legal in
encourage small O No national securities
business and startup regulator (implemented
at provincial level) then
O Businesses can accept
small contributions from coordinated through CSA
citizens without making O Gov’t wants to take a
IPO “wait-and-see” approach
O Start-up equity crowdfunding.
O Debt-based crowdfunding.
O Good-cause crowdfunding.
O Pre-order crowdfunding.
O Rewards-based crowdfunding.
Start-Up Equity Crowdfunding
O This new model allows large numbers of
“regular” people to invest small amounts online
to fund early start-ups.
O Sometimes called micro-financing or peer-to-
peer (P2P) lending:
O start-ups borrow money from a number of
people online and pay them back after the
project is finished.
O This model of funding
not available in Canada.
O People invest (donate) money to a project
that has good moral/ethical value.
O Most companies using this model are not-
O Investors make online pledges to pre-buy the
product for later delivery (if it is ever built).
O No financial return should be expected other
than the product.
O Investors get the satisfaction of helping, and
immediately get a pre-determined reward or
perk of value, such as a t-shirt, or other
O This is a variation on the two previous ones,
but there is no equity or finished product.
“When you’re an entrepreneur, you don’t have
a job--at least not in the conventional sense of
that word. You have a calling. And unlike a job,
a calling defines you as a person. It’s who you
– Arlene Dickinson
O Convey your idea clearly and quickly
O Quality is much more important than length
O Match style to type of project
O 30-60 days
O Covers expenses
O In line with expectations
O Meet & Greet / Demos
Keys to Remember
O Build your network before the campaign
O Be flexible and responsive
O Know your media targets