Crowdfunding overview, particularly the social media and behavior aspects of rewards-based crowdfunding.

1. Crowdfunding
More than Money:
A Social Revolution

2. C.J. Cornell
@cjcornell
Crowdfunding

3. What is Crowdfunding?
When & Why to Crowdfund?
Successful Crowdfunding
How to Crowdfund
Propel Arizona …
Crowdfunding
CJ Cornell

4. What is Crowdfunding?

5. Crowdfunding
Soliciting & Collecting relatively small amounts
of money (funding) from a large number
(crowd) of people

6. What is Crowdfunding
• Derived from Collective Intellgence
• Convergence of ecommerce, venture funding,
social media, social networking
• Online and Offiline
• Debt, donation, equity and other
• ROI, ROE

7. What is Crowdfunding

8. What is Crowdfunding

9. What is Crowdfunding

10. What is Crowdfunding

11. What is Crowdfunding

12. What is Crowdfunding

13. What is Crowdfunding

14. What is Crowdfunding

15. The Funding/Innovation Gap

16. Concept to Product to Growth

17. Concept to Product to Growth
$ $ $ $

18. Concept to Product to Growth
Entrepreneur IPO
$

19. Concept to Product to Growth
Entrepreneur IPO
$
Venture
Entrepreneur Capital IPO
$ $

20. Concept to Product to Growth
Entrepreneur IPO
$
Venture
Entrepreneur Capital IPO
$ $
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $

21. Concept to Product to Growth
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $ $
$
Crowdfunding

22. Concept to Product to Growth
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $ $
$ $ Crowdfunding
Crowdfunding

23. Concept to Product to Growth
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $ $
$ $Crowdfunding $
Crowdfunding Crowdfunding

24. Concept to Product to Growth
Angels, Venture
Entrepreneur accel & incub Capital IPO
$ $ $ $
$ $Crowdfunding $
Crowdfunding Crowdfunding Crowdfunding
$

25. Crowdfunding Concepts
• Debt Crowdfunding
– microloans
– P2P lending
• Donation Crowdfunding
– Charity/Causes
– Kickstarter Model
– Rewards Based
– Pre-Order/Presumer
• Equity Crowdfunding
– JOBS act

28. Equity Crowdfunding - JOBS
• Eliminates ban on general solicitation and general advertising in connection
with private offerings to accredited investors under Regulation D (Rule 506) and to
qualified institutional buyers under Rule 144A.
• Exemption from Securities Act registration “crowdfunding” transactions
(involving access to small amounts of capital through the internet).
• Exemption to allow issuance of up to $50 million of securities in any 12-month
period, up from the current $5 million threshold
• An increase in the number of shareholders a company may have before being
required to register its common stock with the SEC and become a public reporting
company from 500 to 2,000 total shareholders (including up to 500
“unaccredited” shareholders)
• Amount each person may invest in offerings of this type, tiered by the person's net
worth or yearly income.

29. Rewards-based, Donation Crowdfunding:
“THE KICKSTARTER MODEL”

33. ALL OR NOTHING

34. Perks &
Rewards

35. Updates (and Blogging)

36. Updates (and Blogging)

37. Comments & Engagement

39. Rewards-based, Donation Crowdfunding:
REWARDS & PERKS = “WHY”

41. Rewards-based, Donation Crowdfunding:
PRE-ORDER / PRESUMERS …

42. Rewards Crowdfunding
• Incentives & perks
• Pre-Orders
• Pre-Sumers
• Market Validation

43. Rewards don’t have to worth $$

45. Rewards-based, Donation Crowdfunding:
SO, WHY WOULD ANYONE …??

48. American Grandmaster
a Patrick Million FILM
Directed by
Patrick Million
Executive Producer
CJ Cornell

49. WHY Crowdfunding?
• Passion
– For the technology
– For the industry
– For the cause
– For the product
• Affinity
– For the Entrepreneur
– For the region, industry etc
• Connection
• Every reason BUT R.O.I. …

50. Lessons from Ethan Mollick’s “The Dynamics of Crowdfunding: Determinants of Success and Failure”

51. emotional rate of return.
Not financial ROI

52. The Kickstart Model..
UH OH …

55. Crowdfunding sites
• Kickstarter • Equity Crowdfunding
• Indiegogo sites (not legal, not
• operating)
•
• • Specialty niche
Crowdfunding sites
•
• Propel Arizona
• Micro loan,
cause/charity funding
sites.

56. HOW to Crowdfund?
1. PRE - Preparing
2. PUSH - Running the campaign
3. POST – Delivering on your Promise

57. HOW to Crowdfund?
1. PRE - Preparing
– Build Credibility
– Sharpen Pitch & Post
– Perks and Rewards
– Timefames & $$

60. HOW to Crowdfund?
PUSH - Running the campaign
• Social Media
• Comments & Updates
• Networking
• Personal Pitches

61. Social Engagement
– Transparency & Trust
– Social Proof & Viral FX
– Engagement & “The Fundamentals”
– Twitter
– Facebook
– Blogging

62. HOW to Crowdfund?
POST - campaign
• Thanks …
• Perks and rewards
• Updates
• Completing your goals !!

63. Introducing …
Crowdfunding Arizona Entrepreneurs
Jumpstarting Innovation & Economic Growth
www. propelarizona.com

70. • Brave Souls
• White Knights
• Superstars
• Supernovas
• Etc …

71. • Pitch Events
• Contests
• Workshops
• Mentoring

73. www. propelarizona.com