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Neighbor.ly Explained

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Neighbor.ly is the civic crowdfunding platform. It helps cities save money while greenlighting projects. It lets people, businesses and institutions invest in the places and civic projects they care about. This slideshow is a condense overview from the original pitch deck.

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Neighbor.ly Explained

  1. 1. HELLO The Civic Crowdfunding Platform
  2. 2. HELLO The Civic Crowdfunding Platform Think: Kickstarter for Cities / Neighborhoods / CIDs
  3. 3. Crowdfunding ... ? "...the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations ... for any variety of purposes, from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns."
  4. 4. Crowdfunding ... ? "...the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations ... for any variety of purposes, from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns." Why not civic projects?
  5. 5. Crowdfunding ... revolution?
  6. 6. Crowdfunding ... revolution?
  7. 7. Crowdfunding ... revolution?
  8. 8. The problem: doing more withless Cities need $$$ for projects Taxes revenues flat, difficult to raise % Citizens want amenities Projects boost local economies, add revenue
  9. 9. Solution Neighbor.ly: A web platform to raise capital for civic projects through the power of
  10. 10. Solution Neighbor.ly: A web platform to raise capital for civic projects through the power of W in ! CITIES SAVE MONEY
  11. 11. Solution Neighbor.ly: A web platform to raise capital for civic projects through the power of W in ! W in ! DONORS/ CITIES INVESTORS SAVE EARN $ MONEY & PERKS
  12. 12. Solution Neighbor.ly: A web platform to raise capital for civic projects through the power of W in ! W in ! W in ! DONORS/ CITIES INVESTORS CITIZENS SAVE EARN $ GET NEW MONEY & PERKS AMENITIES
  13. 13. Solution Neighbor.ly lets people fund the civic projects they care about. It works sort of like Kickstarter: 1. Set target amount (X) and date (Y), offer perks 2. Campaign to generate commitments 3. If X reached by Y, project "green lights" (optional) 4. Collect $ / issue bonds & non-monetary perks
  14. 14. Solution Neighbor.ly lets people fund the civic projects they care about. But its built just for civic projects: • Beyond donations => investors, companies take interest • Highly configurable deal structures • Ties into municipal finance infrastructure • Lower overall platform fee % (pass bank fees to donor)
  15. 15. Pilot project: KCMO streetcarstarter • KCMO: $75M - $100M for streetcar starter line • Proposed funding: special district around line • District might work, but unique challenges
  16. 16. Pilot project
  17. 17. Pilot project Distribution of Funding Sources (Excludes Operating Costs) $16,100,000 $35,500,000 Assessment - Commercial Assessment - Residential Assessment - City-owned TDD Sales Tax $11,400,000 "Other City Revenue Federal Property in District $50,700,000 $11,300,000 Parking in TDD
  18. 18. Our mission: change projectfinance Obligation affecting a few locals
  19. 19. Our mission: change projectfinance Obligation affecting a few locals Opportunity open to anyone in the US OR LD W
  20. 20. Partially capitalizing up front... 1. Contributions from the public (reduce principal) • Naming rights • Tax deductions / credits • Pre-sell rides, etc. 2. Auction off ad opportunities (reduce principal) 3. Pre-validate bond demand (reduce interest cost)
  21. 21. ...can save big $$$ over time A B C D E Existing Proposal 10M Reduced 10M Reduced 30M Reduced 30M Reduced (Worst Case) Principal Principal & Rate Principal Principal & Rate Principal $76,000,000 $66,000,000 $66,000,000 $46,000,000 $46,000,000 Interest % 5.3% 5.3% 3.0% 5.3% 3.0% Length in Years 25 25 25 25 25 Total Interest $62,000,000 $54,000,000 $28,000,000 $34,000,000 $19,000,000 Total Cost $138,000,000 $120,000,000 $94,000,000 $77,000,000 $62,000,000 % Saved 13% 32% 44% 55% Savings / yr $800,000 $1,800,000 $2,200,000 $2,800,000 Total Savings $18,000,000 $44,000,000 $54,000,000 $69,000,000 $150M Interest Principal $75M $0M A B C D E Assumptions • Based on Streetcar TDD Preliminary Financial Plan • Calculated using fixed payments. Real results will vary ± 15% • 3% rate (scenarios C and E) rounded up from 2.56% AAA MMD rating @ 2027. Retrieved 17 April 2012.
  22. 22. Why this works
  23. 23. Why this works Power Law Distribution aka "Long Tail" Currently civic investment / donation accessible to wealthy. Our platform makes civic investment accessible / appealing to the masses.
  24. 24. Keys to encouraging contributions 1. Something for every type of entity • For Citizens (civic pride, usage, tax credits, etc.) • For Companies (visibility, advertising) • For Nonprofits / Institutions (e.g. PILOT) 2. Broad economic range ($10 - $1,000,000) 3. Low / externalized fulfillment costs
  25. 25. Example: traditional bricks
  26. 26. Example: modern bricks
  27. 27. Example: photo / logo mosaics
  28. 28. Example: photo / logo mosaics
  29. 29. Example: photo / logo mosaics
  30. 30. Example: photo / logo mosaics
  31. 31. Example: interactive ad rights Source: openairep.com
  32. 32. Example: space branding
  33. 33. What types of projects? • Transportation: streetcars, bikeshare, etc. • Technology: community Wi-Fi, colocation • Parks: community gardens, playgrounds, parklets • Buildings: AIA stalled projects, preservation, reuse • Sports: Stadiums, athletic facilities
  34. 34. Who can list projects? • Local governments • Public-private partnerships • Neighborhood organizations • Community improvement districts • Home owner associations • Real estate collectives • Universities
  35. 35. THANK YOU! http://neighbor.ly http://twitter.com/neighborly http://facebook.com/neighborDOTly

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