Crowdfunding presentation at ESparkUK
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Crowdfunding is a method of raising capital by collecting small amounts of money from a large number of people online. It is linked to social media as projects can go viral and gain support. Successful crowdfunding campaigns typically have clear reward tiers, engage their existing community, carefully select their project and platform, and develop a publishing plan to promote their campaign. Kirsty Burnham from SoLoCo will discuss her experience with crowdfunding and take questions.
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Crowdfunding presentation at ESparkUK
- 1. Crowdfunding EntrepreneurialSpark 8th March 2012 @twintangibles #crowdfundingES
- 2. Agenda • What is Crowdfunding? • How is it linked to social? • Advantages, disadvantages & examples • What is typical? • How to be successful • Kirsty Burnham - SoLoCo • Q&A
- 4. What is Crowdfunding? “Crowdfunding is a method of raising capital, or resources, by collecting together lots of small amounts from a large number of people generally using the Internet and social media.”
- 5. Obama 2008 Campaign $264.5M Total <$200 $122 $88.2m $27.7m Obama McCain www.xplane.com/obama
- 6. Brewdog 1st round: 2nd round: • 10% Firms • 8% Firms Equity Equity • £95 per share • £230 per • 5000 investors share • 90% sold in 3 months •First time any • 1300 • £1m investment in less company in Europe had investors than 2 weeks. attempted to raise • 20% off in • £95 to £12k individual money via an online the shop! investments share offering
- 7. All or Nothing Reward Based Take it All Holding Model Crowdfunding Platform Models Equity Based Club Model Micro-lending Micro-finance P2P
- 8. Where is it Used? Source http://www.core77.com/blog/kickstarter/crowdfunding_revolution_should_i_do_this_21697.asp
- 9. Crowdcube Source: www.crowdcube.com
- 10. How is it linked to social?
- 11. Popularity Value The Long Tail Quantity Products
- 12. Re-imagine Yourself ? £
- 13. Viral Reach
- 14. Expectation of Return • Non-traditional • Brand loyalty • Less aggressive? • Longer term? Coase’s Penguin – Yochai Benkler
- 15. Advantages, disadvantages and examples
- 16. Advantages • Market testing • Distributed cognition • Not just cash • Small sums quickly available • Brand advocates • Increasingly a location for VCs • Stable investment • Expectation of return
- 17. Disadvantages • It doesn’t always work • Damaging? • It’s not free • It is not a panacea • How will other investors view it • Administration cost
- 18. Printrbot – 3D Printer •$25,000 Goal •Avg. donation $460 •17 Reward categories
- 19. The Bicycle Academy •£40,000 Goal •9 Reward categories •Funded in 6 days •Campaign Build- up/Preparation time: 5+ months
- 20. What is typical?
- 21. So what is typical? Successful Pledged Projects Backers Avg # backers Avg Project Value Avg Pledge Value Film & Video $32,473,790.40 3,284 308,541 94 $9,888.49 $105.25 Music $19,801,685.21 3,653 260,178 71 $5,420.66 $76.11 Design $9,180,637.55 319 99,923 313 $28,779.43 $91.88 Art $5,900,166.14 1,172 78,558 67 $5,034.27 $75.11 Publishing $5,134,388.55 774 74,280 96 $6,633.58 $69.12 Technology $4,673,470.41 125 39,341 315 $37,387.76 $118.79 Theatre $4,051,962.62 931 50,144 54 $4,352.27 $80.81 Games $3,616,530.88 253 45,622 180 $14,294.59 $79.27 Food $2,809,503.31 241 30,682 127 $11,657.69 $91.57 Photography $2,116,261.93 343 26,897 78 $6,169.86 $78.68 Comics $1,763,628.48 267 27,544 103 $6,605.35 $64.03 Fashion $1,351,659.85 182 16,793 92 $7,426.70 $80.49 Dance $1,054,763.95 292 14,377 49 $3,612.21 $73.36 Source: www.kickstarter.com
- 23. How to be successful
- 24. Relative Success Kickstarter fundit.ie 100 44% 75% 0
- 25. Keys to Success
- 26. Keys to Success
- 27. Keys to Success
- 28. Keys to Success • Be Social Media ready • Have a plan and prepare • Don’t forget your offline community • Select your project carefully • Select your platform carefully • Develop your rewards • Create your pitch • Select your channels • Develop a publishing plan • Define and allocate the resource and skills required • Get advice • Get legal advice
- 29. Tim Wright tim@twintangibles.co.uk @twintangibles www.twintangibles.co.uk twintangibles 2012
- 30. Kirsty Burnham