Post on 25-May-2015
description
HOW TO GET THE MONEY YOU NEED
THROUGH CROWDFUNDING based on best practices presented by
Hall T. Martin, Director Texas Entrepreneur Network
What is Crowdfunding?
² A new source of capital ² Sourcing funds for a startup through the internet ² Funding comes in smaller increments but from more investors
Rules to Play By
Answer the questions: ü Why are you unique and worth funding? ü What makes you interesting enough to cut through all
the Internet noise and be seen and heard?
Develop a Great Idea and a Great Team
Rules to Play By
ü Engage your network to start ü Leverage your own network. Only 2% of the
funding comes from outside your network ü Develop and run a broader PR campaign
Understand Your Network is Your Greatest Asset
Rules to Play By
ü Show how the funds will be used, in detail ü Make the plan look realistic and achievable
Understand that You Must
Demonstrate a Detailed Plan
Rules to Play By
ü Enough funding to accomplish the project ü Asking for the right amount shows you know
what you’re doing
To Get Funded, Ask for a Realistic
Amount of Funding
Rules to Play By
ü Ask for feedback ü Respond to questions quickly and with
competence ü Start a dialog and then build relationships with
investors
Remember Communication is
Key
Planning Phase: 3 Months Pre-Launch
ü Visit Crowdsourcing.org and talk to others to find the right platform for your idea
ü Think about who would fund your project, and where they’d be looking for projects like yours
ü Consider the platform’s requirements and benefits
Find an Online Platform
Planning Phase: 3 Months Pre-Launch
ü Show yourself--introduce your name, position, and company
ü Show the product/concept so people get it ü Follow up with the competitive advantage, target market,
intellectual property, and the team ü Talk about how much you are raising and how the funds
will be used ü Close with a Call to Action ü Keep it short-- no more than 2 to 3 minutes ü Open with an attention getting line ü Show passion and enthusiasm ü Use high quality audio ü Avoid distracting backgrounds and noises
Prepare Your Pitch Video
Planning Phase: 3 Months Pre-Launch
ü Write a 5 word tag line ü Write a 250 word description of the deal
including: • What it does • Why it is important • How you will accomplish it • What is unique about it • How much funding is required
Write a 250 Word Description
Planning Phase: 3 Months Pre-Launch
ü 50 to 100 word description of yourself ü Demonstrate your capability and experience
Write Your Biography
Planning Phase: 3 Months Pre-Launch
ü Develop an Executive Summary/Pitch Deck ü Setup blog/Facebook/LinkedIn/Twitter pages ü Develop an Updates plan
• Product developments • Team news • Fund raise status • Customer traction
ü Prepare your network • Identify core & secondary network contacts • Setup a weekly mailing schedule • Identify broader media targets for PR
Prep Your Other Materials
Planning Phase: 3 Months Pre-Launch
ü Raise 20% of your funds target before you launch. This will
help you know if your idea is fundable. Practice your pitch and refine pre-campaign.
ü Consider breaking the campaign into smaller mini-campaigns and using different models for Crowdfunding.
ü Set a campaign that lasts 30, 60, or 90 days. Consider the season: How many people will you actually reach in, say, December?
Set Your Timeline
Launch Phase: 30 – 90 Days
ü It’s a full-time job that requires your interaction ü Follow up promptly on emails about the campaign ü Monitor the campaign mailings ü Adjust the product, pitch, and program based on feedback ü Create and adhere to an updates calendar
Remember, YOU are Running a Campaign
Post Campaign Phase: One Month
ü Fulfill the promises you made ü Finalize documents ü Remember to thank all those who supported you
Follow-Through with Gratitude