Introduction, process.crowdfunding websites, features of crowdfunding. types of crowdfunding. applications, benefits, references .

1. CROWDFUNDING
Funding a project or venture by raising
money from a large number of people who each contribute relatively small
amounts ,typically via internet.

2. CONTENTS
 1.Introduction
 2.Crowdfunding process
3.Crowd funding websites
4.Features of crowdfunding websites
5.Types of crowdfunding
6.Applications
7.Benefits

3. INTRODUCTION
 Practical ,money making ,job creating ideas
 Need money for project
 1st option go for banks (old method)
 Bank consider start-ups as risky –reject loan
 Using internet and cloud computing access potential
investors through crowd funding websites (new
method)

4. Crowdfunding process
 Choose a platform that best suits you
 Give details about the project accept or reject
 Small network of enthusiastic friends and family
 Present a serious business plan and why money will
take your enterprise to next level
 Include a video pitch and keep it short and concise
 Be prepared to essentially live online ,active on social
media sites ,until the crowdfunding campaign is
complete.

5. Crowd funding websites
 1.Kickstarter
 2.Indiegogo
 3.Rocket Hub
 4.GoFundMe
 5.Razoo

6. Features of websites
 1.kickstarter
- most popular(raised $220M from 61000projects)
- accepts only creative projects
- but not accept charity or scholarships
- Investor get the reward only if the project is successful.
- charge 5% fee
-amazon payment 3% extra
- drawback –project creator should be us resident

7.  2.Indiegogo
- same as Kickstarter
- backer get the reward known as “perks”
- flexible funding plan in which you receive fund if project
fail to reach funding goal.
- fee 4 % from fund raised
- extra 3 % credit card processing
- $25 for non us campaigns

8.  3.Rocket Hub
-use most for creatives
-you can track your project progress and status
-launchpad is a special feature offers members to work with
top notch brands ,companies ,and marketers to raise public
interest and seek more potential opportunities
- fee 4 % successful project
- fee 8 % for project ended without reaching goal
- extra 4 % credit card processing fee

9.  4.GoFundMe
-for self (or) for a cause
-EX: personal travel, medication fee
-5 % charge fee
-use “we pay” and they charge 2.9 % to 3.5%
 5.Razoo
- focus heavily on causes than profitable projects
- divide fundraisers into 4 types non
profitable , individuals, corporations, foundations
- technological advantage
- fee 2.9% of the total fund

10. Types of crowdfunding
 Reward based
 Donation based
 Equity based
 Debt based

11. 1.Reward based crowdfunding
 In reward based crowdfunding ,backers contribute small
amounts (between $1 and $1000 but sometimes more) in
exchange for a reward.
 Kickstarter and Indiegogo are most popular rewards based
crowdfunding platforms
2.Donation based crowdfunding
 In donation based crowdfunding ,donors generally donate small
amounts of money.
 No reward
 For non profit (or)cause (ex: drilling a well ,building a school)
 GoFundMe and crowdrise are most popular

12. 3.Equity based crowdfunding
 Investors give large amount (at least $1000)
 no reward but a equity in company itself
 Most used to raise funds for growth of company
 AngelList and Crowdfunder are two most popular platforms
4.Debt based crowdfunding
 Not investors (or) donors but lenders
 No reward (or) equity but expect back principal along with
interest
 Amount is raised for home improvement (or) for a car etc

13. Applications
 Agriculture (Agfunder ,Cropital , Barnraiser are platforms)
 Philanthropy and civic projects
 Real estate(PatchoFLand ,Reality Mogul are platforms)
 Intellectual property exposure
 Science ( experiments.com)

14. Benefits
 Provides access to capital
 It reduce the risk
 It serves as marketing tool
 It gives proof of concept
 Introduce loyal customer
 Easier than the traditional applications
 It is free

15. Thank you
presentation by
Naresh