WHAT IS CROWDFUNDING?WHAT IS CROWDFUNDING?

THE CROWDFUNDING THE CROWDFUNDING SUCCESS EQUATION SUCCESS EQUATION

WHAT IS WHAT IS CROWDFUNDING?CROWDFUNDING?

WHAT IS CROWDFUNDING?WHAT IS CROWDFUNDING?

Crowdfunding describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the internet, to support efforts initiated by other people or organizations.

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THE FOUR TYPES OF THE FOUR TYPES OF CROWDFUNDINGCROWDFUNDING

• Donation Contributions go toward a charitable cause

• Lending Investors are repaid for their investments over a

period of time

• Reward Investors receive a tangible item or service in return

for their funds

• Equity Investors receive a stake in the company

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WHY WHY CROWDFUNDINGCROWDFUNDING WILL / WILL NOT WORKWILL / WILL NOT WORK

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ADDRESSING SCAMS AND FRAUD IN ADDRESSING SCAMS AND FRAUD IN CROWDFUNDINGCROWDFUNDING

“With the fraud rates in the unregulated world of donation crowdfunding hovering around 3%, I think if the Internet's sunlight effect is allowed to work, we will find investment crowdfunding sees even lower incidents of fraud.  There are a number of factors at play in making that work, including the pledge system and the basic vetting required.”

David MarlettFounder and Managing Partner, Crowdfund International

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What makes a project

successful?

SUCCESSFUL SUCCESSFUL PROJECTS:PROJECTS:

• Create a Create a call-to-action videocall-to-action video

• Keep active & Keep active & engaged with your engaged with your audienceaudience

• Get Get early funders early funders aboardaboard

• Reach the CF Reach the CF ““sweet spotsweet spot”” ( (40%40%) )

social media 

noun (usually used with a plural verb) Computers.

Web sites and other online means of communication that are used by large groups of people to share information and to develop social and professional contacts: Many businesses are utilizing social media to generate sales.

COMMON PITFALLSCOMMON PITFALLS

• Setting campaign goals too high/low

• Lack of authenticity/personality in messaging

• Not accounting for processing/reward fulfillment costs

• Excluding a proper “call to action”