This document provides information on various crowdfunding platforms and their models. It discusses the largest rewards-based platforms like Kickstarter and Indiegogo, as well as equity-based platforms such as EquityNet, Symbid, and CircleUp. It also summarizes regulations around crowdfunding in the US under the JOBS Act and notes that crowdfunding platforms are emerging but still developing in India compared to more established options in Europe and the US.

2. Crowdfunding – US, Europe
Business successProductFeatures
KickStarter
Fundable
SeedInvest
EarlyShares
RocketHub
CrowdFunder
Indiegogo
EquityNet
Equity Based Funding
Rewards Based Funding
ArcticIsland
CircleUp
Symbid
Crowdcube
Ulule
WeFunder
Angel.co
ConfidentCrowd

3. Kickstarter
 Largest Crowdfunding site
 Raised $450 million so far
 35,000 successful projects
 43% success rate for projects
 Rewards based funding only, not to make money
 Creators only from US, UK, Backers from anywhere
 Started in April 2009
 Charges 5% of funds raised, Amazon Payments (3-5%)
 Main sectors (50%) – Film & Video, Music and Games

4. Indiegogo
 Rewards based Crowdfunding similar to Kickstarter
 Operates in 196 countries, over 100,000 projects
 Campaign goal not met – take funds with 9% fees
 No data available on total size of deals so far
 looks like a distant second compared to Kickstarter

5. EquityNet
 Largest funding site for Equity based funding, started 2005
 Raised $202 million in capital so far
 600 investor groups with 12000+ individual investors
 Entrepreneurs - $19 to $69/month, free for Investors
 EquityNet takes no share from any deals
 Patented Business Analyzer Tool
 Very Strong and streamlined Business Plan Tool
 Security – Entrepreneur has complete control
 Used by entrepreneurs in any stage or type of business -
from pre-revenue to $100M/year in revenue

6. Symbid
 Dutch crowdfunding site, started officially in 2011
 Both Equity and Rewards based funding
 Over €1 million in capital raised so far
 Unique Legal model for Equity funding
 Only Dutch Legal Entity possible, no foreign entity
 Charges 5% (excluding VAT) of funds collected as a fee
 Setup costs for legal structure extra
 No fee for Investors and Idea only Entrepreneurs
 €250 fee for Entrepreneurs registered as a company
 Investor allowed anywhere from €20 to €2.5 million
 InnerCircle – secure online collaboration tool

7. Crowdcube
 Equity based crowdfunding site, started in 2011
 Very successful in UK – raised £5 million capital so far
 Feb 2013 – it got authorised by the FSA, first UK
crowdfunding platform to offer investors the ability to
become direct shareholders in UK businesses
 All or nothing model for Funding
 Charges 5% of the funds raised as fees

8. CircleUp
 Based in San Francisco, started in 2011
 Equity based Crowdfunding site
 Uses only Accredited investors to fund companies
 Accredited Investors - $200K annual income per
individual or Net worth of more than $1 million
 Funds companies typically with $1 million revenue
 Investors receive preferred shares issued directly by
the company. These shares represent an ownership
stake in the company.

9. US Crowdfunding - waiting for JOBS Act
 Many sites – EarlyShares, SeedInvest, CrowdFunder,
Fundable, WeFunder, ArcticIsland
 Equity based Crowdfunding sites
 JOBS Act
 Signed by Obama in April 2012, details TBD by SEC
 Crowdfund up to $1 million over a 12 month period
 500 cap on number of shareholders removed
 Individuals with annual income or net worth
 Less than $100K can invest 5% annually
 Greater than $100K can invest 10% annually

10. Crowdfunding - India
Business successProductFeatures
WishBerry.in
PikAVenture
IgniteIntent
YoLaunch
SeekFundz
FundMyPitch
YourStory
NENOnline
Equity Based Funding
Rewards Based Funding

11. Crowdfunding - India
 Many sites to be launched – IgniteIntent, PikAVenture,
YoLaunch, SeekFundz, FundMyPitch
 They all seem to be traditional rewards based
Crowdfunding sites like KickStarter
 WishBerry.in – this is the only functioning site
 Started in 2010 by Priyanka Agarwal
 Keeps small percentage of funding money raised
 No data available on total size of deals so far
 YourStory.in – quite successful but only on news
content and event management
 NENonline.org – non-profit, Wadhwani Foundation