This document provides an overview of crowdfunding options for small businesses and Etsy shops. It discusses four main models of crowdfunding - rewards-based, donation-based, equity/investment-based, and peer-to-peer lending. Kiva Zip is highlighted as a good option for Etsy shops seeking no-interest loans under $5,000, as it has a 99.5% funding rate for loans. The document also provides tips for running a successful crowdfunding campaign, such as crafting a compelling story, finding exclusive but affordable rewards, and leveraging social media and influencers for marketing.

1. “So you want to
crowdfund your
Etsy shop?”
What you need to know about navigating the world of crowdfunding

2. CROWDFUNDING IN PLAIN ENGLISH
Lots of individuals contribute small amounts
... they add up to fund a creative project, a business or a cause
... facilitated by online, digital platforms
2

3. 3
Crowdfunding
can help lower
costs of
increasing your
etsy shop’s
profitability by
lowering cost of
goods,
expanding
quality/scale/
capability

4. IF YOU ARE
a small business in the US
looking to crowdfunding as an
alternative source of financing,
there’s good news
and there’s bad news.
4

5. 5
USA = the home of
crowdfunding:
60% of every $
Crowdfunded

6. 6
So many! Just how
do you choose?

7. 7
This Webinar.....
“101”
4 Different
models of
crowdfunding
“OMG!”
“So many sites...
how do I choose
the right one for
my biz?”
Tips for your
Campaign:
How Not to
Fail

8. 8
This Webinar.....
“101”
4 Different
models of
crowdfunding
“OMG!”
“So many sites...
how do I choose
the right one for
my biz?”
Tips for your
Campaign:
How Not to
Fail

9. 9
REWARDS DONATION
EQUITY
(INVESTMENT)
CROWDLENDING
4 different
models of
crowdfunding

10. 10
REWARDS
Contribution > $X,
gets you a cool
reward from the
startup
DONATION
EQUITY
(INVESTMENT)
CROWDLENDING

11. 11
REWARDS
DONATION
“give and
get nothing
in return but
feelgood”
EQUITY
(INVESTMENT)
CROWDLENDING

12. 12
REWARDS DONATION
EQUITY
(INVESTMENT)
CROWDLENDING
Peer-2-peer lending
for low or no
interest

13. 13
REWARDS DONATION
EQUITY
(INVESTMENT)
crowd earns equity,
debt, or a revenue
share for their
contributions
(pending JOBS act)
CROWDLENDING

14. 14
Over the years,
models have
overlapped.

15. 15
REWARDS DONATION
EQUITY
(INVESTMENT)
CROWDLENDING
{Note: sizes of the
circles roughly
indicate current
relative site traffic/
activity in 2013
according to Alexa}

16. 16
REWARDS DONATION
EQUITY
(INVESTMENT)
CROWDLENDING
Note:
Sites selected for discussion are those with highest traffic in each category according to Alexa (Q1 2013),
Kiva traffic from multiple Kiva domains incl Kiva.org and Kiva.org

17. More and more
crowd-funding variants
every year...
17

18. 18
This Webinar.....
“101”
4 Different
models of
crowdfunding
“OMG!”
“So many sites...
how do I choose
the right one for
my biz?”
Tips for your
Campaign:
How Not to
Fail

19. 19
Q1:
What kind of
project/ biz
is it?

20. 20
Q1:
What kind of
project/ biz
is it?
non-profit,
good cause
Innovative
“sexy” idea
with clear
revenue
Innovative
“sexy” idea -
uncertain
success
Not “sexy”
but clear
revenue
No plan yet,
just bet on
ME

21. 21
Q1:
What kind of
project/ biz
is it?
non-profit,
good cause
Innovative
“sexy” idea
with clear
revenue
Innovative
“sexy” idea -
uncertain
success
Not “sexy”
but clear
revenue
No plan yet,
just bet on
ME

22. Q1:
What kind of
project/ biz
is it?
non-profit,
good cause
Innovative
“sexy” idea
with clear
need, end,
and revenue
Innovative
“sexy” idea -
uncertain
rev$, date of
completion
Not “sexy”
but clear rev
$, just needs
capital
No plan yet,
just bet on
ME!

23. Q1:
What kind of
project/ biz
is it?
non-profit,
good cause
Innovative
“sexy” idea
with clear
need, end,
and revenue
Innovative
“sexy” idea -
uncertain
rev$, date of
completion
Not “sexy”
but clear rev
$, just needs
capital
No plan yet,
just bet on
ME!
Q2:
Belongs to these 13 categories:
Art, Comics, Dance, Design,
Fashion, Film, Food, Games,
Music, Photography, Publishing,
Technology, or Theatre?
Y

24. Q1:
What kind of
project/ biz
is it?
non-profit,
good cause
Innovative
“sexy” idea
with clear
need, end,
and revenue
Innovative
“sexy” idea -
uncertain
rev$, date of
completion
Not “sexy”
but clear rev
$, just needs
capital
No plan yet,
just bet on
ME!
Q2:
Belongs to these 13 categories:
Art, Comics, Dance, Design,
Fashion, Film, Food, Games,
Music, Photography, Publishing,
Technology, or Theatre? N

25. 25
Q1:
What kind of
project/ biz
is it?
non-profit,
good cause
Innovative
“sexy” idea
with clear
need, end,
and revenue
Innovative
“sexy” idea -
uncertain
rev$, date of
completion
Not “sexy”
but clear rev
$, just needs
capital
No plan yet,
just bet on
ME!
Q2:
Belongs to these 13 categories:
Art, Comics, Dance, Design,
Fashion, Film, Food, Games,
Music, Photography, Publishing,
Technology, or Theatre?
Y
N
Q3:
Definitely requires loan
$5,000-35,000 AND your Credit
Score > 600
Y

26. 26
Q1:
What kind of
project/ biz
is it?
non-profit,
good cause
Innovative
“sexy” idea
with clear
need, end,
and revenue
Innovative
“sexy” idea -
uncertain
rev$, date of
completion
Not “sexy”
but clear rev
$, just needs
capital
No plan yet,
just bet on
ME!
Q2:
Belongs to these 13 categories:
Art, Comics, Dance, Design,
Fashion, Film, Food, Games,
Music, Photography, Publishing,
Technology, or Theatre?
Y
N
Q3:
Definitely requires loan
$5,000-35,000 AND your Credit
Score > 600
Y
N

27. Q1:
What kind of
project/ biz
is it?
non-profit,
good cause
Innovative
“sexy” idea
with clear
need, end,
and revenue
Innovative
“sexy” idea -
uncertain
rev$, date of
completion
Not “sexy”
but clear rev
$, just needs
capital
No plan yet,
just bet on
ME!
Q2:
Belongs to these 13 categories:
Art, Comics, Dance, Design,
Fashion, Film, Food, Games,
Music, Photography, Publishing,
Technology, or Theatre?
Y
N
Q3:
Definitely requires loan
$5,000-35,000 AND your Credit
Score > 600
Y
N

28. WHAT
CONTRIBUTORS
RECEIVE
DONATION + REWARD
(pre-selling goods,
pre-determined rewards)
DONATION + REWARD
(pre-selling goods,
pre-determined rewards)
DONATION + REWARD
(pre-selling goods,
pre-determined rewards)
INVESTMENT
(equity, share of
revenue)
INVESTMENT
(equity, share of
revenue)
NON-PROFIT
(purely emotional/
feel-good)
NON-PROFIT
(purely emotional/
feel-good)
Main players
Kickstarter Indiegogo rockethub Upstart Prosper Kiva Zip Causes.com
Size / Volume
(ave $ fundraising p/day)
$1.04mil n/a n/a n/a $330K
$500k (all Kiva)
$24k (Zip only) n/a
Failure to meet
Goal %
56%
90%
on projects >
$1000
N/a
non goal-
oriented site
Varies -
est 50%
0.5%
non goal-
oriented site
Fundraising limits
(Whether donation/Loan)
No limit No limit No limit
Varies: $100 up
to$20,000 for
experienced
depends on
credit score,
$35,000 max
1st loan
$5000
No limit
Platform Cost
($paid directly to platform)
5%
4% if goal met
9% if goal not
met
4% if goal met
8% if goal not
met
3%
Fees vary by
Prosper rating
0.5%-5%
FREE
No interest
No commission
FREE
No interest
No commission
Other expenses
(not paid to site but incurred
based on platform’s model)
Video +
Reward + 3-5%
credit card
processing
Video +
Reward + 3-5%
credit card
processing
Video +
Reward + 4%
credit card
processing
(only late
fees)
Interest rate
varies:
9%-35% APR
FREE
Paypal-Kiva
transactions free
4.75% credit
card
processing
Financial
Criteria / eligibility
No No No
min FICO
score > 640
min credit
score > 600
Character
endorsement
No
Type of
business’
restrictions
Art, comics,
dance, design,
fashion, film,
food, video,
games, photo,
publishing, tech,
theatre
No
Not only arts, but
largest crowd-
funder for
Science and
Academic
projects
College
Grads only
No No
GuideStar-
verified and
active 501(c)(3)
nonprofits
Quick overview of numbers (size, fees, costs, limits, etc)
{note: best avail numbers at Mar 2013, please verify for yourself}

29. “So now I’ve chosen the
most suitable crowdfunding
site or sites for myself”...
What’s Next?
29

30. 30
Next, Rise Above
the Noise
of all crowdfunding
campaigns fail.71.3%

31. 31
This Webinar.....
“101”
4 Different
models of
crowdfunding
“OMG!”
“So many sites...
how do I choose
the right one for
my biz?”
Tips for your
Campaign:
How Not to
Fail

32. 32
Don’t forget to include the crowd-funding platform
success and/or failure fees, any credit card fees (usually
2-3%), all reward costs and reward delivery costs.
BUDGET
Find rewards that are exclusive but not costly - name an
ice cream flavor after donors who give >$200, free farm
tours, studio tours or concert passes, collectables, etc.
COOLrewards
CRAFTyour story w/TLC
BUDGET*BUDGET
Watch videos, look at photos or read stories that do well.
Learn. Write your own story. Improve it. Run it by
people who don’t know you well. Improve it again.
HEART
Marketing with no marketing budget is always about
social media heart & hustle. Ask friends to share your
campaign. Ask influentials to retweet you/email intro
you to others. The more people you ask, the luckier you
get in social media.
&HUSTLE

33. 33
ETSY KIVA

34. 34
Q1:
What kind of
project/ biz
is it?
non-profit,
good cause
Innovative
“sexy” idea
with clear
need, end,
and revenue
Innovative
“sexy” idea -
uncertain
rev$, date of
completion
Not “sexy”
but clear rev
$, just needs
capital
No plan yet,
just bet on
ME!
Q3:
Definitely requires loan
$5,000-35,000 AND your Credit
Score > 600
Y
N
Your best option is Kiva Zip if...
....If you’re an everyday small
business or startup with a clear
business plan
AND
.....you could use a 0% interest
zero fee small loan <$5000 to help
your business start/ grow more
profitably....

35. 0% interest, zero fee crowdfunded loans <$5000
99.5% of loans posted are FULLY funded.
Any kind of small business: Cooks, farmers,
craftmakers, coffeeshops, home contractors,
beauticians, landscapers, cleaners, etc.
“Just everyday small businesses
funded directly by ordinary people’s
generosity - facilitated directly online.
No one makes money but you.”
35

36. &
• “Etsy+kivazip” progam
• Getting Kivaʼs ʻcrowdʼ of lenders to support Etsy sellers become self-sustaining
• Getting the Etsy community teams to publicly endorse great sellers for interest-free loans
• Because they are ʻvouched forʼ qualify for a <$5000 zero interest zero fee crowdfunded loan
• funded by a base of 1.3mil registered Kiva lenders from around the world
• So far 3 Etsy sellers on Kiva Zip, more on the way
36
$3,000 loan to hire a stay-
at-home mom to help with
yarn-making, hire pro
photographer
Ximenelle
Yarn Shop
$5,000 loan to expand
range to bridal
accessories + marketing
outreach
PRINCESS PUDDLE
DUCK
hairbows
$5000 loan for cold vending cart
& equipment for festivals
HEALCREST URBAN
FARM
Herbal Teas

37. 37

38. What a loan profile looks like (Ximenelle example)
38

39. 39
What an endorsement looks like (Ximenelle example)

40. Questions?
- about crowdfunding options in general
- about Kiva Zip specifically
40

41. 41
Support a local small business with a $25 loan
Zip.Kiva.org/loans
Found a trustee within your committee? Apply for a starter loan <$5000
Justin@kiva.org
(coming soon)
Etsypluskivazip web hub

42. Appendix:
Additional web resources on crowd-funding
(recommended)
42

43. 43
1) Broad search:
what different crowd-funding sites exist?
2) Compare & Select:
Of the larger sites serving my type of biz, which
one(s) suit my needs (size, speed)& resources best
3)
Free Tips:
How to activate the
crowd and minimize
wasting time and
money?
http://www.rockethub.com/education
Rockethub Success School