Plum Alley + VROU: 85Broads Webinar


Published on

Deborah Jackson, Founder and CEO of Plum Alley and Kathryn Moos, Founder and CEO of VROU talks about the crowdfunding landscape and how to run a successful campaign.

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Plum Alley + VROU: 85Broads Webinar

  1. 1. Connecting Women with Commerce, Funding & Experts CROWDFUNDING FOR WOMEN WITH Deborah Buresh Jackson, Founder and CEO, Plum Alley Kathryn Moos, Founder and CEO, VROU
  2. 2. $ C ROWD F U N D I N G E X PE RTS CO M M E R C E
  3. 3. Crowdfunding Presentation Summary • Basics: What is crowdfunding? (equity and reward- based) • Benefits for women who raise money • Benefits for women who give money • Case study with woman entrepreneur, Kathryn Moos
  4. 4. What is Crowdfunding? • Going to the public or the crowd and asking them to give you money for your idea or project • Power of the internet - easily connect with your friends, family, and supporters • It is efficient, low cost, and relatively easy compared to the “old” way
  5. 5. Three Types of Crowdfunding Equity crowdfunding with Accredited Investors Equity crowdfunding with everyone else Crowdfunding with rewards instead of equity
  6. 6. Equity Crowdfunding with Accredited Investors • • Women give a piece of ownership in their company for money Similar to angel or VC investing only done on the internet with documents and info—generally not in person • • Can raise money for revenue making businesses not ideas or projects Handful of sites that are new: Angel list, Circle Up – have to be qualified accredited investors to invest—high net worth individuals who document that they have a net worth over $1 million or other tests and the financial means to lose the money if investment fails • Have to decide if your company is in a position to do this—lots of people looking on-line at your company and evaluating • Remember less than 10% of start-ups succeed so highly risky
  7. 7. Equity Crowdfunding with other than Accredited Investors • • Jobs Act 2012 passed legislation passed to spur economy and jobs.   The long standing rules about who can invest were liberalized anyone who makes over $100,000 can invest in companies for a piece of equity ownership.   • In the news a lot but regulations for how it will work just coming out from SEC in bits and pieces.  Not yet final regulations.  Stay tuned. • Right now Plum Alley does not offer equity crowdfunding but we may at some point in the future.
  8. 8. Is Equity Crowdfunding from nonaccredited Investors a good idea or bad idea? ARGUMENT FOR ARGUMENT AGAINST • Most people are not in a position • for early stage companies. to loose their money. The documents and information Opens up new sources of money • Gives many people a way to prepared for potential investors is benefit from upside if a company not standard and investors need is successful. some protection to make sure they have complete and proper information to invest.
  9. 9. Reward based crowdfunding: What Plum Alley fund offers • Reward based - people who give money get a prize or a gift for their contribution.  It is not charity. • What can the prize be? • depends on the type of project but can be something big or something small • • depends on how much you give examples are a water bottle with a logo, a private dinner with a movie star, a product before it is available anywhere else
  10. 10. Why do people give money on crowdfunding? • • • • • • • • • They know the person They can give small or large amounts They want the product They want the reward They want to see the project exist or happen It makes them feel good It is powerful and changes the world It will make the world better They are part of a bigger movement
  11. 11. What types of things can be funded on Plum Alley? • • Pretty much anything Examples are: • • • • • • • • Cultural projects such as art, theatre, dance Film TV pilot New foods or beverages A social movement or cause Consumer products Eco-friendly project Orders for new items to test market acceptance –like clothing or fashion
  12. 12. How does crowdfunding on Plum Alley work? • Determine if right for you or your company • Is your extended network large enough? • Do you care enough? • Can you devote the time needed for 2 months or more?
  13. 13. Steps for a crowdfunding campaign on Plum Alley Determine how much money to raise Make a budget and estimate cost Determine your network and decide the best way to approach them Plan event, plan launch Assemble your handful of friends to help you - they will be honored Keep up the visibility and ask directly for people to fund
  14. 14. What helps a campaign on Plum Alley succeed • • • team or a company—it is harder alone tap into every network you have even your high school friends find your champions and funders and get them to do more—tell everyone they helped you and thank them • • • • • develop a near term social media plan and outreach help passion, courage and tenacity are necessary ingredients hire experts to help with your campaign plan long enough time for your campaign to progress be conservative in the amount you raise and push to over fund
  15. 15. Why do I personally like crowdfunding? • • • • • It makes dreams come true A little money goes a long way to jump starting your idea or business It builds a community from day one People like to help—here is an easy way Women don’t have the same access to capital and this is one way to tap a crowd—think of what the Obama campaign taught us: all those college kids giving $5 adds up. • This is disruptive—it is a way to change the flow of money in our society and it empowers everyone to participate • You can test your product and minimize the risk to you and future investors
  16. 16. What if you don’t have a project? How can you participate on Plum Alley fund?
  17. 17. Case Study: Kathryn Moos of VROU Transforming and simplifying the way women get nutrients
  18. 18. Where we are • First Product: Multivitamin Drink + Antioxidants + Electrolytes providing women with 13 essential vitamins • Launched May 2013 - Available in select Whole Foods locations
  19. 19. Why Plum Alley? • Women helping women • Aligning strong women-focused companies have staying power • Opportunity to get brand in front of many eyes while controlling message • • Engage and excite community and personal networks Help support demand
  20. 20. Advice for other project creators: Preparation is key! • Create a compelling narrative surrounding your idea • Put yourself in the shoes of somebody who knows nothing about your brand and is being exposed to the idea for the very first time...what moves them? • Commitment to the campaign • Crowdfunding is a huge time commitment and a lot of hard work.
  21. 21. Strategic outreach starts BEFORE your campaign goes live • Give your personal network (friends and family) a heads up that you are going to launch a campaign, and tell them to be ready to act as soon as you go live • • Early traction is important Compile lists of bloggers and media contacts that have had a previous experience writing about your industry / crowdfunding • • Develop unique story angles for editors Be personable
  22. 22. Plans post Plum Alley • Schedule and prepare for second production run so we can send out the rewards to our wonderful contributors! • Put pieces in place to broaden distribution  • Whole Foods and other retail accounts • Online (if we meet our stretch goal on Plum Alley!)
  23. 23. Why a crowdfunding site catering to women? • The exact same reason that women pay and join organizations like 85 Broads - 25,000 strong world wide, and the same reason there were 7,000 paying women at the PA Conference for Women.  Women want their space and they want to share inspiration and resources.  That is what these organizations and conferences do.  That is also what Plum Alley does.  It provides inspiration and resources for women.
  24. 24. WWW.PLUMALLEY.CO • • • • sign up for our emails to keep current fund projects of interest or launch a project support women entrepreneurs by buying their products - it matters! sign up to be an expert for pay or hire an expert