1.
Crowdsourcing Definition
“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

2.
Crowdfunding Definition
“the practice of funding a project or venture by
raising many small amounts of money from a
large number of people,
typically via the
Internet.”
– Forbes

3.
How does it work?

4.
Crowdfunding Platforms

5.
Crowdfunding Legislation
U.S.A. CANADA
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
funding
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

6.
Crowdfunding Models
O Start-up equity crowdfunding.
O Debt-based crowdfunding.
O Good-cause crowdfunding.
O Pre-order crowdfunding.
O Rewards-based crowdfunding.

7.
Start-Up Equity Crowdfunding
O This new model allows large numbers of
“regular” people to invest small amounts online
to fund early start-ups.

8.
Debt-Based Crowdfunding
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.

9.
Good-Cause Crowdfunding
O People invest (donate) money to a project
that has good moral/ethical value.
O Most companies using this model are not-
for-profits.

10.
Pre-Order Crowdfunding
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.

11.
Rewards-Based Crowdfunding
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
recognition.
O This is a variation on the two previous ones,
but there is no equity or finished product.

12.
ACTIVITY TIME!

13.
Live It!
“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
are.”
– Arlene Dickinson

14.
O Convey your idea clearly and quickly
O Quality is much more important than length
O Match style to type of project

15.
Campaign Length
O 30-60 days
Target Amount
O Covers expenses
O In line with expectations
Live Fundraising/Pitching
O Meet & Greet / Demos

16.
Rewards

17.
Keys to Remember
O Build your network before the campaign
O Be flexible and responsive
O Know your media targets
O Integration