Travis Kahn, entrepreneur, startup mentor and marketing & sales specialist provides an overview of crowdfunding.

1. 
Crowdfunding for Success
Alternative Funding

2. ①Overview
②Platform Types
③What You Need to Know
④Crowdfunding Success
⑤Where We Stand

3. Who Am I?
 Accelerator Executive
Director
 Startup Co-Founder
 Startup Mentor
 University Professor
(teaching entrepreneurship)
 Marketing Specialist
 Active Crowdfunder
(backed 40+ successful
products)

4. 
Overview
What is this “Crowdfunding” mumbo-jumbo all about?

5. What is Crowdfunding?

6. What is Crowdfunding?

10. Crowdfunding Challenges
①Fraud Prevention
②Inflated Expectations
③Investor Education
④Investor Fatigue
⑤Prudent Regulation
⑥IP Protection

11. Why Do It?

12. Why Do It?

13. Why Do It?

14. Why Do It?

15. Beyond Investment

16. Beyond Investment

17. 
Platforms
Highlights

18. Rewards
Top Platforms ①Money for “stuff”
① Merchandise, pre-order,
exclusive access
② Founders keep equity
②Avg. raise: $7,500
① ~100 “backers”
③50%+ fail to reach goal
① Refund to backers
100’s of others

19. Donation
Top Platforms ①Money for support
① Fund your cause
② Feel good
③ Peer-to-peer funding
②Avg. raise: $1,400
③Reduced overhead
① More money to the
cause, less to admin
100’s of others

20. Debt
Top Platforms ①Money for more money
① Peer-to-peer Micro-loans
②Avg. raise: $4,700
① ~2%-4% default rate
② SBA loans: ~11.6% default
③Around the banks
① Competitive/undercut
interest rates (0%-10%)
② Alternative methods to
evaluate creditworthiness100’s of others

21. Equity (Accredited Only)
Top Platforms ①Money for equity stake
① Own piece of company
② Payout at exit
②Avg. raise: $190K
① Platform takes %
③Not for everyone
① In US, only accredited
investors can participate
② Sites typically curate
deals
100’s of others

22. Equity (Retail)
Top Platforms ①Money for equity stake
②Wisdom of the crowds
① …though layers of
curation & oversight are
in place
③Europe leads the way
① EU supporting initiatives
② Varied rules from country
to country10’s of others

23. 
WhatYou Need to Know
Facts & Figures

24. Global Crowdfunding Industry
2013: $5.1 Billion
Data Source: Massolution annual crowdfunding report
…and
GROWING!

25. WhatYou Should Know

26. Geographic Breakdown
*2012 Data

27. Fundraise Amounts

28. Category Breakdown

29. 
Success Stories
A Quick Look

30. Keys to a Successful Campaign
① Duration: 30-60 days
① Set minimum & stretch goals
② Constant updates
① Weekly
② Countdown to final day
③ Leverage your network
④ Show the product
⑤ Tell a story
① Appeal to emotion
⑥ Secure 30-50% pre-launch

31. Pebble SmartWatch

32. Oculus Rift

33. Oculus Rift

34. Yoga Studio Launches

35. Modu-Strip

36. Thousands andThousands…

37. 
WhereWe Stand
Legislative Outlook

38. JumpStart Our Business Startup (JOBS)
① Bipartisan support
② Signed into law April 5, 2012
③ Eases reporting requirements
④ Allows for ‘general solicitation’
of private company investment
⑤ Exemptions for “emerging
growth” companies
⑥ SEC to define new rules…

39. SEC Rules
Title II Title III
①Went live 9/23/13
②Authorizes general
solicitation
① Includes public
advertising
③Opens crowdfunding to
accredited investors
④Verification process for
platforms and investors
①Going live….??
① Late 2014/early 2015
②Opens crowdfunding to
the masses
③Flawed in current form
① Burdensome expenses
② Unrealistic expectations
③ Lacks liability protection
for platforms

40. The Future
①Rules need to evolve
②Consolidation inevitable
③New world order
④Be prepared for
speedbumps
⑤Power to the people
⑥Optimistic!
①…yet realistic