Opening Up Enterprise Funding Through Technology
-Crowd Funding-
Sam Shafie
Co-Founder, pitchIN http://pitchin.my
What is Crowd Funding?
• An alternative method of raising finance for a business, project or idea.
• With crowd funding, an entrepreneur can attract a ‘crowd’ of people – by contributing towards an online funding target.
Types
Rewards or Equity or Donation
How has crowd funding worked in other parts of the world, to
help SMEs & entrepreneurs raise money?
Kickstarter (as from 2009)
pitchIN (as from 2012)
Projects Launched 72,108 15
Successful Projects 30,097 3
Total Dollars Pledged
368 million 17,815
Successful Dollars 311 million 8,305
Unsuccessful Dollars 38 million 9,301
Is Crowd Funding a Viable Option?
• Democratic
• Rather than pitching to one or two angels/VC, you’re instantly pitching to the world.
• People are motivated to be part of a community.
• Validation
• Develop a fan/customer base very early on.
• Clear process
• Instant results
How Does Crowd Funding Work
• Idea or project is pitched to the public
• Choose a duration (30-45-60 days),
• “All or nothing” for commercial/creative projects
• “All” for community projects
• Successful project(s) get money after fees are deducted
Categories/Channels
Arts & Design
Community
Film & Video
Games
Music
Photography
Publishing
Technology
How Does One Inspire The Crowd?
Have a great idea to start a project.
Be creative, passionate and clear.
Articulate, inspire and engage.
Reward your potential supporters
Will My Idea Be Copied?
• There is always a risk of copyright infringement when you release your concept into a public domain.
• It’s all about execution.
What Are The Key Criteria To Have, To Be SUCCESSFUL In
Crowd Funding?
• Tell a compelling story
• Paint a picture of what it might be, document, tell a story. Let others know.
• Get people to know your project/business.
• Spend some time to do a high quality video.
• Do the legwork before you launch
• The crowd funding campaign should be your
last push.
• Write a project blog, open Twitter and Facebook accounts and create teaser videos.
• Do as much as you can to get your message out there and keep on updating people. Build momentum.
• Hit the ground running
• Some projects try to crowd fund far too soon, with little or no build up.
• People’s opinion of any project will be based at least in part by how well it’s been received by others, so if a lot of time has gone by with little or no money raised, then it will be seen as a vote of no confidence.
• Know your customer
• Get covered. Getting mentioned on the right press can have a far bigger impact.
• Focus efforts to reach the people who are most likely to back your project.
• Set goals
• Set a meaningful and realistic funding goal, set it too high and you may never reach it – set it too low and you won’t create enough excitement or benefit that much once funded.
• Be prepared to work hard
• Not a shortcut to success, nor an easy ride – it takes hard work. It’s not magic.
• Be prepared to keep promoting the project to all your contacts, on your social media accounts and in the media too.
• Be open, honest and realistic
• People will want to know a lot about you and your business.
• Unless you have a pre-existing reputation as a successful entrepreneur, you must expect people to want to know more about you and your story.
• It’s important to remember that in many cases your backers will help out by providing their time or expertise – let them know how they can help.
• It’s not all about the money
• Crowd funding can be a great way to fund a start-up, but it’s all the other benefits that really make it an exciting prospect for your project.
• A successful crowd funding campaign will generate far more than just money.
Summary
• Crowd Funding is a viable option for entrepreneurs to raise funds.
• A great source for validation.
• Little risks.
• Success is not guaranteed but entrepreneurs will definitely learn.
don’t forget to pitchIN!
• Facebook: facebook.com/pitchIN.my
• Twitter: twitter.com/pitchIN_my
• Web: http://pitchin.my
• Email: [email protected]
• Create a project: http://pitchin.my/create
• Or download at http://db.tt/DBpnj2qt