This document provides an overview of crowdfunding and the JOBS Act through a case study presentation. It discusses the different crowdfunding models including rewards, equity, lending, and donations. It also outlines how much individuals can invest through crowdfunding under the JOBS Act and highlights some popular crowdfunding platforms. The presentation profiles three successful crowdfunded projects and offers considerations and lessons learned for running a crowdfunding campaign.

1. An introduction to
crowdfunding Tim Stansky
@timstansky
November 2012

2. This presentation offers an
overview of crowdfunding with an
emphasis on the rewards model
and a case study of
“Crowdfunding Innovation”, a
special Mass Innovation Nights
event.
When the JOBS Act is in full
swing there will be lots of room
for “teachable
moments”, unsavory types, and
success.

3. What is crowdfunding?
A tool that gives entrepreneurs the opportunity to attract a
pool of people via social media or shared interests in order
to contribute to a funding target that has been previously
established by the entrepreneur. (11/6/12 Forbes article
link)
The JOBS Act
The Jumpstart Our Business Startups Act or JOBS Act, is a
law intended to encourage funding of United States small
businesses by easing some securities regulations. It
passed with bipartisan support and was signed into law by
President Barack Obama on April 5, 2012. (link to
legislation)

4. Current Models
Rewards Equity Lending Donation

5. Protect orphans and widows
How Much Can I Invest?
Everyone can invest at least $2,000/year.
If an investor makes less than $100,000/year or have less than
$100,000 in assets, they can invest 5% of that each year.
For example, if I make $80,000/year, I will be able to invest
$4,000/year in startups.
If an investor makes less than $200,000/year or has less than
$200,000 in assets, they can invest 10% of that each year.
For example, if I make $150,000/year, I can invest $15,000/year
in startups.
If an investor makes more than $200,000/year they are
considered and accredited investor, and can basically invest as
much as they want.

6. Platforms

7. This is nothing new. Joseph Pulitzer’s
crowdfunding
campaign generated
an awe-inspiring
$100,000 in five short
months through micro
donations. The most
incredible aspect of
his campaign is that
the over 120,000
donations were in
most cases less than a
dollar.
(Statue of Liberty crowdfunding story link)

8. Panel Conversation moderated
by the Boston Business
Journal’s Kyle Alspach with
three Mass Inno alumni who
successfully funded
crowdfunding projects on
Kickstarter: LifeCycle
Bracelets, Memory On
Hand, and Ministry of Supply.
(link to video)
The founders of these ventures
shared their insight and
experience in planning the
project, defining project goals or
objectives, necessity of
preparation, and offered hard-
earned advice from lessons
learned.

9. Kingsley Flood
FUNDED!
6% FUNDED! My TV 38 in Feb ‘13
2% FUNDED! 5%
gaining equity actively pre-selling
FUNDED!
followers orders
19% $8k to date 7%

10. Why are they doing this?
 fan engagement
 pre-sales
 marketing
 SEO, mentions
 hipster factor

11. Anatomy of a campaign
 the project
 apply to the platform
 designing the rewards
 prep work for launch, video!
 trajectory through influencers
 fulfillment and nurturing

13. Considerations & sleep loss
 legal and tax issues
 supply chain and fulfillment
 a compelling video
 satisfying 200 equity holders
 can I sell my equity?

14. Hello from PledgeMusic,
Kingsley Flood posted a new update for Be a part of our new full-
length album:
EPISODE 5: (re)Arranging, or, Saved by the Bell and cats
Alright folks, 60% with 25 days left. Thanks so much…we’re getting
there…but of course we’re not quite there yet, so if you have friends
you’ve brought to shows or just into music, we’d love if you told
them about the campaign. They can pledge as little as $10
(awesome!) or go up to $1,000 (more awesome!).
But since you all are already champs, enough chit chat.
Instead, you get this week’s video from the studio.
This is Episode 5: (re)Arranging. It explores what happens when we
start off not excited about a song, and end up very excited about it.
Lots of things contributed to this: a cocktail party, tubular
bells, Saved by the Bell, etc. The thing we’re probably most excited
about is the shirt Nick wears while he narrates this. And the special
relationship he has with his cat.
Thanks for watching, pledging, being, etc.
This update includes: 1 video and 3 images.
View the full update.
Loving your work. Team Pledge

16. Best ways to learn
 back a project and go
for the ride
 www.bit.ly/CIyoutube
 Follow projects on
Twitter
Tim Stansky @timstansky
www.wickedbostonaccent.wordpress.com