Ideavibes London Crowdsourcing - Crowdfunding - Citizen Engagement Workshop


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Presentation given at Innovation Warehouse on June 20/11 focused on crowdsourcing and crowdfunding for start-ups, non-profits, charities, cities, etc.

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  • Fabulous presentation Paul. This is extremely helpful as we start to market to the Crowd. Thank you for the stimulation. Myra
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  • First services:Crowdfunding via Community InvestmentsMatch-making and negotiation tools for private investmentsProfessional service investments
  • First services:Crowdfunding via Community InvestmentsMatch-making and negotiation tools for private investmentsProfessional service investmentsNext steps:Local investment networks and entrepreneur communitiesCorporate VC platformVC Co-investmentsOpen platform to build investment models
  • Next steps:Local investment networks and entrepreneur communitiesCorporate VC platformVC Co-investmentsOpen platform to build investment models
  • Ideavibes London Crowdsourcing - Crowdfunding - Citizen Engagement Workshop

    1. 1. Innovation and change through the crowd<br />Paul Dombowsky<br />
    2. 2. Agenda / Highlights<br />11:00 - 11:30 Arrivals - Buffet Lunch - Networking<br />11:30 - 11:40 Introductions / Thank You<br />11:40 - 11:45 A word from our venue host - Tony Fish (AMF Ventures)<br />11:45 - 12:50 Workshop - Paul Dombowsky from Ideavibes <br /> Highlights from the Crowdconvention<br />12:50 - 13:05 Tony Dhillon from GrowVC - overview of one, practical<br /> example of crowdfunding<br />13:05 - 13:25     Question & Answer Period<br />13:25 - 13:35    Wrap-up<br />3<br />
    3. 3. Thank you<br />Adam Cranfield - Consultant<br />Matt Ball – COO and Co-Founder<br />3<br />
    4. 4. Our Venue Host<br />Tony Fish<br />3<br />
    5. 5. Where does innovation happen?<br /><ul><li>Cities
    6. 6. Neighbourhoods
    7. 7. Government Depts.
    8. 8. Small businesses
    9. 9. Educational System
    10. 10. Social System
    11. 11. F1000 Companies
    12. 12. Non-profits</li></ul>2<br />
    13. 13. Our Bias<br />We see the crowd as having the knowledge, the power, the desire, and the ability to help you make better decisions, solve problems, and fund change or innovation, if given the opportunity.<br />2<br />
    14. 14. Overview<br />2<br />
    15. 15. Crowdsourcing<br />Defined<br />An engagement process whereby organizations seek input from either open or closed communities of people, either homogenous or not, to contribute ideas, solutions, or support in an open process whereby the elements of creativity, competition and campaigning are reinforced through social media to come up with more powerful ideas or solutions than could be obtained through other means.<br />Why Bother?<br />Organizations have a difficult time engaging with their communities to strengthen their relationship and be citizen/crowd focused. Internal or external, the community has ideas that can be harnessed that come from diverse backgrounds, experiences and education. <br />7<br />
    16. 16. Participation Happens – Civic or Brands<br />5<br />
    17. 17. Who is your crowd?<br />The crowd you know The crowd you don’t know<br />Social Media Makes the Connection<br />8<br />
    18. 18. Who is your crowd?<br />CITY<br />Engagement<br />Targets<br />6<br />
    19. 19. Where Innovation / Crowdsourcing Fits<br />8<br />
    20. 20. Two Sides of Crowdsourcing<br />Citizen Engagement<br />Community / Civic / National<br />Market Engagement<br />Customers / Prospects / Partners<br />3<br />
    21. 21. Where the conversations are happening?<br />Official & Unofficial<br /><ul><li>Google Groups
    22. 22. Wiki’s
    23. 23. User Groups
    24. 24. Podcasts
    25. 25. Blogs
    26. 26. User Voice
    27. 27. Epinions
    28. 28. Cnet
    29. 29. Reviewsarena
    30. 30. Buzzillions
    31. 31. Tribe Smart</li></ul>Why not tap into the conversations that are already happening?<br />Get the crowd working for you.<br />8<br />
    32. 32. The Promise of Web2.0<br /><ul><li>Web 2.0 is about 2 way conversations</li></ul>Web based services and communities characterised by participation, collaboration and sharing of information among users online. 

Web2.0 applications include wikis, crowdsourcing, blogs and social networking sites which encourage user-generated content (USG) and social interaction online.<br />8<br />
    33. 33. Citizen Engagement<br />2<br />
    34. 34. I have a challenge<br />18<br />Land use determination – who drives the agenda and the conversation?<br />Two approaches <br />Opportunity driven<br />Innovation driven<br />The difference lies in where the ideas come from<br />From the user or the customer<br />From the supplier<br />
    35. 35. I have a challenge<br />19<br />Opportunity Driven (supplier)<br />Innovation Driven (customer)<br />
    36. 36. Citizen Engagement in Web 2.0 for London 2.0<br /><ul><li>There are many one way conversations happening:
    37. 37. Blogs
    38. 38. Square Mile Blogger
    39. 39. Londoniscool
    40. 40. London Underground Tube Diary
    41. 41. Dave Hill’s Politics Blog
    42. 42. London Standard
    43. 43. Telegraph Blog
    44. 44. Podcasts
    45. 45. Dial-Eye-Lama
    46. 46. Editorial Intelligence
    47. 47. Make no mistake – your citizens want to be involved intransforming the City of today to City 2.0.
    48. 48. Where is the engagement? Where is the innovation happening?</li></ul>Driven bySocial Media Platforms<br />4<br />
    49. 49. Government as a Platform<br /><ul><li>Ideas and information produced by and on behalf of the citizen or the crowd
    50. 50. Crowd is empowered to spark the innovation that will result in an improved approach to governance
    51. 51. Move away from ‘Vending Machine Government’
    52. 52. Responsibility is shared between citizens and staff</li></ul>20<br />
    53. 53. NYC Example<br />NYC Citizen Engagement Program<br />12<br />
    54. 54. SF Example<br />San Francisco Engage4change Citizen Engagement Program<br />(2 weeks)<br /><ul><li>No. of Engagements = 2252
    55. 55. Referrals = 64% from Twitter
    56. 56. Cost = 500 ice cream cones ($1,000)
    57. 57. HumphrySlocombe’s Crowd= 320,000 twitter followers and Facebook Friends</li></ul>13<br />
    58. 58. Market Engagement<br />2<br />
    59. 59. What is Social Product Management?<br />The opening up of innovation to internal and external input for the development of products in various stages of the product development lifecycle.<br />Crowdsourcing can be part of an open innovation or social product management strategy.<br />5<br />
    60. 60. Product Management Lifecycle<br />Capture new customers with options & features they are looking for.<br />Crowdsource Option: features & functionality<br />Crowdsource Testing – early adopters reward<br />Socializing requirements and prioritization gathering improves decision making <br />6<br />
    61. 61. How Product Development Used to Happen<br />9<br />
    62. 62. Social Product Development/Open Innovation<br />10<br />
    63. 63. Build a Social Product Strategy<br />Reach customers & prospects where they live – join in the conversations that are happening already<br />Capitalize on valuable customer and prospect insight<br />Develop a culture of collaboration<br />Implement the right social technology to get the job done<br />Communicate results and intentions and be open as possible<br />Let conversations happen in the open<br />Be crowd friendly on an ongoing basis<br />22<br />
    64. 64. Sources of Innovation<br />Does participation require a reward? <br />Do people contribute for the good of the brands they like?<br />How do you democratize the input?<br />11<br />
    65. 65. Innovation: Crowdsourcing vs The Survey<br />9<br />
    66. 66. Product Development - Branded<br />IdeaStorm was created to give a direct voice to Dell’s customers and an avenue to have online “brainstorm” sessions to allow them to share ideas and collaborate with one another and Dell. Their goal through IdeaStorm is to hear what new products or services you’d like to see Dell develop.<br />In almost three years, IdeaStorm has crossed the 10,000 idea mark and implemented nearly 400 ideas! <br />14<br />
    67. 67. Product Development - Inventions<br />Quirky is an all in one product development shop for inventors.<br />15<br />
    68. 68. Conference Agenda<br />Ignite uses crowdsourcing for the source and crowd directed agenda at an upcoming event.<br />16<br />
    69. 69. Where does trust sit?<br />According to Forrester Research (2010),<br />71% of people say they trust the opinions<br />of family, friends and colleagues as a source<br />of information on products and services.<br />Their crowd or tribe.<br />7<br />
    70. 70. It all starts with a Question or Problem<br />17<br />Needs to be:<br />Clear and compelling<br />Not leading<br />Allow for open innovation<br />Encourage participation<br />Allow for outliers to feel comfortable<br />
    71. 71. The Appeal<br />Crowdsourcing surfaces new perspectives<br />Invites participation from nontraditional sources <br />Infuses real energy into the process of generating ideas and content<br />Empowers people when they feel their voice is being heard<br />Technology can enable participation by disenfranchised (ie. PCs in libraries/shelters with citizen engagement campaigns)<br />Builds engagement and relationships with new audiences<br />10<br />
    72. 72. Crowdsourcing Pros and Cons<br />PROS<br /><ul><li>Reduced time to market
    73. 73. Reduced risk due to early customer input
    74. 74. Increased customer lifecycle value
    75. 75. Broader source of innovation
    76. 76. Strengthened brand through participation
    77. 77. Organizations can’t have all the brightest people on staff
    78. 78. Ideas don’t have to be discovered by internal R&D teams to be capitalized upon
    79. 79. Benefits from varied experiences</li></ul>CONS<br /><ul><li>Less control
    80. 80. Needed trust not easily come by in some organizations
    81. 81. Requires community management
    82. 82. Suffers if crowd is too narrow
    83. 83. Disruptive to traditional timelines for product roll outs
    84. 84. First attempt is risky until you understand your crowd
    85. 85. Need to know your target audience</li></ul>17<br />
    86. 86. Things to Watch For<br /><ul><li>Excessive lobbying and promotion
    87. 87. Narrow crowds product narrow results
    88. 88. No follow-through causes creditability hit
    89. 89. If you say you are generating solutions for X, communicate what happened and why
    90. 90. Broad ideation campaign descriptions will result in less focused results BUT too narrow will restrict creativity
    91. 91. Dismissing ideas that seem far fetched
    92. 92. Ideation often requires refinement – understanding what your crowd is saying by ‘x’</li></ul>11<br />
    93. 93. What is Crowdfunding?<br />Crowdfunding(sometimes called crowd financing, crowd sourced capital, or street performer protocol) describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations. Crowdfundingoccurs for any variety of purposes, from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company or small business[1] or creating free software.<br />21<br />
    94. 94. Motivating Funding<br /><ul><li>Percentage of Ownership (regulatory backwater in most countries)
    95. 95. Percentage of profits
    96. 96. Rewards (points or the CD / Movie)
    97. 97. Tax receipt</li></ul>11<br />
    98. 98. Models<br /><ul><li>The Arts
    99. 99. Kickstarter
    100. 100. IndieGoGo
    101. 101. Start-ups
    102. 102. Peerbackers
    103. 103. GrowVC
    104. 104. Crowdforce
    105. 105. Ceedme
    106. 106. RocketHub
    107. 107. Fundedbyme
    108. 108. Charities
    109. 109. Fundchange
    110. 110. Crowdrise
    111. 111. Lending – Charities
    112. 112. Kiva</li></ul>11<br />
    113. 113. Example - Kickstarter<br />11<br />
    114. 114. Example - Fundchange<br />11<br />
    115. 115. Examples: Profunder (US only)<br />Funding source for entrepreneurs<br />Revenue Share<br />Debt<br />Equity<br />11<br />
    116. 116. The Appeal<br />Uses social media to get the word out<br />Taps into your crowd and your crowd’s crowd<br />10<br />
    117. 117. Benefits & Challenges <br /><ul><li>It’s social – the crowd promotes projects it likes
    118. 118. It’s social – the crowd won’t promote projects that aren’t shareable
    119. 119. Success comes to those that actively build a crowd
    120. 120. A challenge for organizations new to social media
    121. 121. It’s the free market at work
    122. 122. It’s the free market at work
    123. 123. Build stickiness to the project
    124. 124. Need to pay attention to write-up to inspire funders</li></ul>12<br />
    125. 125. Integrating Crowdfunding into Your Organization<br />Things to keep in mind:<br /> <br /><ul><li>Crowdfunding success comes quickest to organizations that are social –media-aware and engaged. If your organization is not yet social media-enabled, it will take time and human and financial resources to do so.
    126. 126. Because your efforts are only as good as the crowd you are able to mobilize to your cause, it makes sense that your organization strategically manages and promotes its brand online.
    127. 127. Make sure your target audience is online and will give online
    128. 128. If you opt to post your projects on established crowdfundingsites, do your homework – be careful of the company you keep. </li></ul>13<br />
    129. 129. How an Engagement Platform Works<br />22<br />
    130. 130. A Platform Could Help<br />2<br />
    131. 131. Ideavibes Citizen Engagement Platform<br /><ul><li>Easy to set-up and deploy
    132. 132. Able to run multiple campaigns at once
    133. 133. Can run Crowdsourcing and Crowdfunding Campaigns
    134. 134. Build stickiness and community around those that engage (sign-in and see past votes, comments, ideas)
    135. 135. Hosted solution (in Canada)
    136. 136. Able to be implemented on existing website or set-up in new, destination site
    137. 137. Social Media connected
    138. 138. One of few sub $1000/month solutions</li></ul>21<br />
    139. 139. How Does Ideavibes Compare?<br />Enterprise Collaboration or Idea Management<br />Large – multi-functioning platforms for Idea Management<br />Integrated into change management and process improvement lifecycles<br />Chaordix, Bright Idea, etc.<br />Middle-tier Focused Crowdsourcing Apps<br />Purpose-built customizable apps focused on crowdsourcing<br />Narrow or wide focus<br />Multiple crowdsourcing and crowdfundingcampaigns<br />Ideavibes, Spigit<br />Note – Ideavibes is only white label crowdfunding platform available<br />Ad-hoc website or Social Media widgets<br />Developed by web teams with basic functionality<br />Functionality as opposed to business process driven<br />24<br />
    140. 140. Thank you<br />Paul Dombowsky | 613.878.1681 |<br /><br />
    141. 141. Grow VCEveryone Funding Startups<br />June 1, 2011<br />
    142. 142. Vision <br />The next Silicon Valley is not a location, it is a platform and community on the Internet<br />
    143. 143. Mission<br />Provide the platform, service tool kit and partner network for the Virtual Silicon Valley<br />
    144. 144. Investment models<br /><br />56<br />1. Community Fund<br />2. Private Investment<br />3. Work Investment<br />Startup selects the funding target<br />Members make micro-investments ($20, $50 or $100)<br />The funding target is divided into 10 parts; startups get money always when a 1/10 is full<br />Standard GrowVC investment agreement<br />GrowVC manages the investment<br />Startup selects the funding target<br />Members make investment proposals<br />Startup can accept or reject<br />Local law firm makes the investment agreement based on standard Term Sheet<br />The investor manages the investment<br />Startup makes an offer: competence, targets (hours/achievements), ownership  model to calculate compensation<br />An expert makes a proposal <br />Startup can accept or reject the proposal<br />Standard work investment agreement<br />Startup manages work and the expert the investment<br />
    145. 145. WE HAVE A DREAM:<br />more equal opportunities,<br />where entrepreneurs<br />and ordinary people unite<br />to accelerate innovation<br />
    146. 146. How to democratize startupinvestments: examples<br />A company like Facebook<br />A company collects totally $20M and achieves $10B valuation<br />If the company has 20 equal investors, each of them invested $1M and gets $500M in the exit<br />If the company has 100,000 investors, each of them invested $200 and gets $100,000 in the exit<br />A more typical startup<br />A company collects totally $3M and achieves $100M valuation<br />If the company has 3 equal investors, each of them invested $1M and gets $33M in the exit<br />If the company has 10,000 investors, each of them invested $300 and gets $10,000 in the exit<br /><br />58<br />Which model has greater influence on people, business and economy<br />
    147. 147. global<br />transparent<br />open<br />collaborative<br />efficient<br />
    148. 148. 1. P2P and Crowd-funding<br />via Community Fund investments<br />
    149. 149. 2. Match-making and negotiation toolsfor Private investments<br />
    150. 150. 3. Reward professionals<br />Work investment scheme<br />
    151. 151. Browse investments when you have time<br /><br />63<br />
    152. 152. The Grow VC platform enablesmany models, example<br /><br />64<br />Investment decisions:<br /><ul><li>Community
    153. 153. Co-investors have automated model with veto right
    154. 154. Direct investments
    155. 155. Community micro-investments
    156. 156. Support for investment process and materials</li></ul>Start-upXXX<br />Community FundMicro-investments<br />Start-upYYY<br />Private investments<br />Start-upZZZ<br />Co-investors<br />Investment process:Managed by community<br />
    157. 157.<br />65<br />Initial growth: customer adoption<br />The first full service was launched on February 15, 2010<br />Statistics on April15, 2011:<br />Registered users: 8,256<br />Startups, total: 1,986<br />Startups, open funding round: 98<br />Total available capital: USD 16,668,175<br />Total requested capital: USD 20,021,502<br />Average monthly growth: over 400 new members a month<br />
    158. 158. First local services:India and China<br /><br />66<br />Top level local local teams: including VC and finance professionals,serial-entrepreneurs. Localized for the local needs and ecosystem.<br />
    159. 159. Tony DhillonHead of European Operationstony@growvc.comTel (UK): +44 7961 848 586Skype: tony.dhillon10 - Twitter:@tdhillon10<br /><br />Twitter: @growvc<br />