Crowdfunding Presentation - Jan 21


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Slides from Crowdfunding presentation January 21st in MKTG 6226.

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  • Crowdfunding Presentation - Jan 21

    1. 1. Crowdsourcing Definition“the act of an institution taking a functiononce performed by employees andoutsourcing it to an undefined (andgenerally large) network ofpeople in the form ofan open call.”– Jeff Howe
    2. 2. Crowdfunding Definition“the practice of funding a project or venture byraising many small amounts of money from alarge number of people,typically via theInternet.”– Forbes
    3. 3. How does it work?
    4. 4. Crowdfunding Platforms
    5. 5. Crowdfunding Legislation U.S.A. CANADAO 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) thenO 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. 6. Crowdfunding ModelsO Start-up equity crowdfunding.O Debt-based crowdfunding.O Good-cause crowdfunding.O Pre-order crowdfunding.O Rewards-based crowdfunding.
    7. 7. Start-Up Equity CrowdfundingO This new model allows large numbers of“regular” people to invest small amounts onlineto fund early start-ups.
    8. 8. Debt-Based CrowdfundingO 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 fundingnot available in Canada.
    9. 9. Good-Cause CrowdfundingO People invest (donate) money to a projectthat has good moral/ethical value.O Most companies using this model are not-for-profits.
    10. 10. Pre-Order CrowdfundingO Investors make online pledges to pre-buy theproduct for later delivery (if it is ever built).O No financial return should be expected otherthan the product.
    11. 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. 12. ACTIVITY TIME!
    13. 13. Live It!“When you’re an entrepreneur, you don’t havea job--at least not in the conventional sense ofthat word. You have a calling. And unlike a job,a calling defines you as a person. It’s who youare.”– Arlene Dickinson
    14. 14. O Convey your idea clearly and quicklyO Quality is much more important than lengthO Match style to type of project
    15. 15. Campaign Length O 30-60 daysTarget Amount O Covers expenses O In line with expectationsLive Fundraising/Pitching O Meet & Greet / Demos
    16. 16. Rewards
    17. 17. Keys to RememberO Build your network before the campaignO Be flexible and responsiveO Know your media targetsO Integration