Get your mobile project fundedCeremony event Applications for Belgium – April 17th, Gent,

Belgium

By Pascal De Keyser Founder & CEO @ AppsFunder

Topics I will cover How investors look at mobile apps Where to find funding

Public initiatives Private alternatives

A closer look at crowd funding Crowd what? The state of the CF industry in 2012 Types of funding Crowd funding in Belgium

Why crowd funding mobile apps? 10 tips for successful crowd funding

How investors look at mobile appsInvestors are not eager to finance app-projects in early stage, as they know: • the average app-revenue was €10K in 2012• +70% of all apps don’t make any money• the stores are exploding, so is competition So, new app projects need to look for alternative funding possibilities: • public grants• public & private incubators• public & private seed capital• FFF and crowd funding

Where to find funding in Belgium Public initiatives

Amount

Project support

Seed & VC

Incubators

50K€ 100K€

Research grants

WaarborgleningWin-Win lenng

Where to find funding in Belgium Private alternatives

Amount

Project support

Friends, Family Fools

Crowd funding

50K€ 100K€

Incubators

Seed & VCBusiness Angels

Crowd funding: crowd what? -Crowd funding = the collective co-operation, attention and trust by people who network and pool their money together, usually via the internet, in order to support efforts initiated by other people or organizations (Wikipedia)

-Project owners pitch and promote their project. Funds are collected against a target amount to be reached in due time. Project owners get the funds only if the target amount is reached in due time.

-Investors analyze, challenge and support a project by pledging pre-orders, cash,… in return of an agreed pay-back. Returns are given only of the target amount is reached in time.

Crowd funding: the industry in 2012

Total funding in 2012: 2B€Total number of campaigns: 1,1 M • USA leading with 54%, or 1,1 B€• Europe counting for 31%, or 600 M€

Yearly CAGR 2009-2012: +/- 70%Forecast 2013: + 3,7 B€ • US- market expected to grow with 80% • Europe to grow with +50%

450+ platforms-

Crowd funding: 5 common types of fundingDonations- Funds are pledged without compensation - Typical for social causes, charity Equity / Loans- Investors become shareholders - Most used for business start-ups- Regulated by local financial regulators Rewards- Funds against non-financial rewards- Most popular in music/arts/game dev. Lending- Pooling of funds for personal loan- Based on monthly payback-schemeRevenue share:- Funds against a share in revenues- Often used for music / mobile app dev

Crowd funding: situation in Belgium Regulatory framework (FSMA) Based on FSMA-publication of July ‘12 - Law on public offering of finincial

instrum.- Shares, loans, debt notes, …- Prospectus if amount > 100K€- Platform is FSMA-regulated

- Law on collective investment comp.- Applies when funds are pooled- Registration + approval from FSMA

needed- Law on amanaging refundable credits

- FSMA regulated - Often ‘VZW’ + escrow accounts

Equity / Loans -

Rewards / Revenue share-

Why crowd funding mobile apps?Critical Succes

Factors Mobile market fit

Market has established fan / user base

Small funding can make the differenceAttractive rewards possibleProject quality controlTransparent revenue tracking

Product/market has engagement potential

10 tips for successful crowd fundingChoose the right platform

Go for a local platform if possible, as local funding is more probable to happen

Check out niche portals, their members are hooked on your type of projects

Draft a planCrowd funding is also hard work, it needs

a launching-plan like any other project: targets, resources, …

Make a teamSplit tasks before, during and after a

campaign Tell a story

Create attraction and engagement though an authentic story, something out of

the common Build trust

Publish updates, actions, proof points

Create compelling rewards- Pretty obvious. Be creative. .Offer

something unusual, personal. - Leverage your social networks- Peer-recommendation through social

media is your strongest marketing tool.

- Break-up bigger projects- Use different smaller milestones to

achieve. It builds trust, and you get some funds in earlier

- Plan how to spend the money Be clear on the purpose of your quest

for funds. Deliver evidence of the planned usage.

- Be courageous- People believed in you and/or your

project. They expect you to deliver. Don’t disappoint them.

Pascal De KeyserE: pascal@appsfunder.comT: @pascaldeeyserM: +32 494 500 404