What is Crowdfunding?

CROWD POWER LETTING THE CROWD FUND YOUR SMALL BUSINESS Crowdfunding is a term used to describe individuals coming together to support-and directly fund-projects by other individuals and organizations. For small businesses and startups, crowdfunding can be an engine for job creation and development. THE EVOLUTION OF CROWDFUNDING The concept of crowdfunding isn't entirely new. It's come about thanks to a progression of other funding ideologies. 24 - Microfinance - - Microlending - - Peer-to-Peer Lending - - Crowdfunding - THE NUTS AND BOLTS Prospective and established small business owners can use crowdfunding platforms to jump-start their next project. Three Models of Crowdfunding %$4 1. Donations, Philanthropy, and Sponsorship 2. Lending 3. Investment THE PROS AND CONS Pros Cons 999 Platform also serves as a marketing tool Often limited on amount of funding you can raise Provides a forum for feedback on the project Exposes project to the public, risking copycats Relatively inexpensive way to raise funds Funds may be subject to securities regulation POPULAR PLATFORMS Crowdfunding sites can connect communities of small investors to small business owners looking for funding. The following are several popular site options. fansnextdoor KICK STARTER .COM quirky RocketHub INDIE GOGO profounder öfficehours Pozible M MicroVentures Cofundo DOES IT WORK? Popular site Kickstarter has put up some pretty impressive figures since its launch two years ago, but not all projects are successful. At a Glance, As of April 2011 $53MIL $40MIL 20,371 PLEDGED - - COLLECTED - - PROJECTS - Success Rates 43% 21% 52% 90% percent of projects with one pledge succeed. 90 percent of projects 1/3 of needed funding succeed. 21 percent of projects don't receive any pledges. percent projects reach are successful. MAXIMIZE YOUR CROWDFUNDING CAMPAIGN So how do you create a successful crowdfunding campaign? Here are the steps. CHOOSE THE RIGHT SITE FOR YOU Some sites have a focus such as arts or SET A REALISTIC TARGET AND TIME LIMIT Asking for too much or too Tittle can affect your project's chances of success. CREATE A CAMPAIGN VIDEO A personal touch pays off. Projects with videos outperform those without by 125 percent. nonprofits. Find the one that fits your business. POST REGULAR CAMPAIGN UPDATES Keep supporters engaged and maintain CONNECT WITH FRIENDS AND FAMILY FIRST Begin with word of mouth among your inner circle, then promote your campaign on social media. OFFER REWARDS Supporters may be more eager to back you if you offer a small incentive. momentum. SNAPSHOT OF VARIOUS PLATFORMS More crowdfunding sites are introduced every year. We take a closer look at a few of the popular options out there. Causes/ Razoo/ Crowdrise TYPE OF ORGANIZATION Kickstarten IndieGoGo Pozible 33Needs Profounder StartSomeGood U.S. 501(c)3s Only For-Profit Enterprises Only Allows Unincorporated Groups Allows Both For- and Non-Profits TYPE OF PROJECT Creative Projects Only Social-Change Projects Only TYPE OF FUNDING Future Revenue Sharing All-or-Nothing Model Keep-What-You-Raise Funding Model Blended Tipping-Point Funding Model OTHER Campaigns Venture Profiles SOURCES: CROWDSOURCING.ORG, STARTSOMEGOOD.COM, KICKSTARTER.COM, MASHABLE, BUSINESSINSIDER, LEXISNEXIS CROWD POWER LETTING THE CROWD FUND YOUR SMALL BUSINESS Crowdfunding is a term used to describe individuals coming together to support-and directly fund-projects by other individuals and organizations. For small businesses and startups, crowdfunding can be an engine for job creation and development. THE EVOLUTION OF CROWDFUNDING The concept of crowdfunding isn't entirely new. It's come about thanks to a progression of other funding ideologies. 24 - Microfinance - - Microlending - - Peer-to-Peer Lending - - Crowdfunding - THE NUTS AND BOLTS Prospective and established small business owners can use crowdfunding platforms to jump-start their next project. Three Models of Crowdfunding %$4 1. Donations, Philanthropy, and Sponsorship 2. Lending 3. Investment THE PROS AND CONS Pros Cons 999 Platform also serves as a marketing tool Often limited on amount of funding you can raise Provides a forum for feedback on the project Exposes project to the public, risking copycats Relatively inexpensive way to raise funds Funds may be subject to securities regulation POPULAR PLATFORMS Crowdfunding sites can connect communities of small investors to small business owners looking for funding. The following are several popular site options. fansnextdoor KICK STARTER .COM quirky RocketHub INDIE GOGO profounder öfficehours Pozible M MicroVentures Cofundo DOES IT WORK? Popular site Kickstarter has put up some pretty impressive figures since its launch two years ago, but not all projects are successful. At a Glance, As of April 2011 $53MIL $40MIL 20,371 PLEDGED - - COLLECTED - - PROJECTS - Success Rates 43% 21% 52% 90% percent of projects with one pledge succeed. 90 percent of projects 1/3 of needed funding succeed. 21 percent of projects don't receive any pledges. percent projects reach are successful. MAXIMIZE YOUR CROWDFUNDING CAMPAIGN So how do you create a successful crowdfunding campaign? Here are the steps. CHOOSE THE RIGHT SITE FOR YOU Some sites have a focus such as arts or SET A REALISTIC TARGET AND TIME LIMIT Asking for too much or too Tittle can affect your project's chances of success. CREATE A CAMPAIGN VIDEO A personal touch pays off. Projects with videos outperform those without by 125 percent. nonprofits. Find the one that fits your business. POST REGULAR CAMPAIGN UPDATES Keep supporters engaged and maintain CONNECT WITH FRIENDS AND FAMILY FIRST Begin with word of mouth among your inner circle, then promote your campaign on social media. OFFER REWARDS Supporters may be more eager to back you if you offer a small incentive. momentum. SNAPSHOT OF VARIOUS PLATFORMS More crowdfunding sites are introduced every year. We take a closer look at a few of the popular options out there. Causes/ Razoo/ Crowdrise TYPE OF ORGANIZATION Kickstarten IndieGoGo Pozible 33Needs Profounder StartSomeGood U.S. 501(c)3s Only For-Profit Enterprises Only Allows Unincorporated Groups Allows Both For- and Non-Profits TYPE OF PROJECT Creative Projects Only Social-Change Projects Only TYPE OF FUNDING Future Revenue Sharing All-or-Nothing Model Keep-What-You-Raise Funding Model Blended Tipping-Point Funding Model OTHER Campaigns Venture Profiles SOURCES: CROWDSOURCING.ORG, STARTSOMEGOOD.COM, KICKSTARTER.COM, MASHABLE, BUSINESSINSIDER, LEXISNEXIS CROWD POWER LETTING THE CROWD FUND YOUR SMALL BUSINESS Crowdfunding is a term used to describe individuals coming together to support-and directly fund-projects by other individuals and organizations. For small businesses and startups, crowdfunding can be an engine for job creation and development. THE EVOLUTION OF CROWDFUNDING The concept of crowdfunding isn't entirely new. It's come about thanks to a progression of other funding ideologies. 24 - Microfinance - - Microlending - - Peer-to-Peer Lending - - Crowdfunding - THE NUTS AND BOLTS Prospective and established small business owners can use crowdfunding platforms to jump-start their next project. Three Models of Crowdfunding %$4 1. Donations, Philanthropy, and Sponsorship 2. Lending 3. Investment THE PROS AND CONS Pros Cons 999 Platform also serves as a marketing tool Often limited on amount of funding you can raise Provides a forum for feedback on the project Exposes project to the public, risking copycats Relatively inexpensive way to raise funds Funds may be subject to securities regulation POPULAR PLATFORMS Crowdfunding sites can connect communities of small investors to small business owners looking for funding. The following are several popular site options. fansnextdoor KICK STARTER .COM quirky RocketHub INDIE GOGO profounder öfficehours Pozible M MicroVentures Cofundo DOES IT WORK? Popular site Kickstarter has put up some pretty impressive figures since its launch two years ago, but not all projects are successful. At a Glance, As of April 2011 $53MIL $40MIL 20,371 PLEDGED - - COLLECTED - - PROJECTS - Success Rates 43% 21% 52% 90% percent of projects with one pledge succeed. 90 percent of projects 1/3 of needed funding succeed. 21 percent of projects don't receive any pledges. percent projects reach are successful. MAXIMIZE YOUR CROWDFUNDING CAMPAIGN So how do you create a successful crowdfunding campaign? Here are the steps. CHOOSE THE RIGHT SITE FOR YOU Some sites have a focus such as arts or SET A REALISTIC TARGET AND TIME LIMIT Asking for too much or too Tittle can affect your project's chances of success. CREATE A CAMPAIGN VIDEO A personal touch pays off. Projects with videos outperform those without by 125 percent. nonprofits. Find the one that fits your business. POST REGULAR CAMPAIGN UPDATES Keep supporters engaged and maintain CONNECT WITH FRIENDS AND FAMILY FIRST Begin with word of mouth among your inner circle, then promote your campaign on social media. OFFER REWARDS Supporters may be more eager to back you if you offer a small incentive. momentum. SNAPSHOT OF VARIOUS PLATFORMS More crowdfunding sites are introduced every year. We take a closer look at a few of the popular options out there. Causes/ Razoo/ Crowdrise TYPE OF ORGANIZATION Kickstarten IndieGoGo Pozible 33Needs Profounder StartSomeGood U.S. 501(c)3s Only For-Profit Enterprises Only Allows Unincorporated Groups Allows Both For- and Non-Profits TYPE OF PROJECT Creative Projects Only Social-Change Projects Only TYPE OF FUNDING Future Revenue Sharing All-or-Nothing Model Keep-What-You-Raise Funding Model Blended Tipping-Point Funding Model OTHER Campaigns Venture Profiles SOURCES: CROWDSOURCING.ORG, STARTSOMEGOOD.COM, KICKSTARTER.COM, MASHABLE, BUSINESSINSIDER, LEXISNEXIS CROWD POWER LETTING THE CROWD FUND YOUR SMALL BUSINESS Crowdfunding is a term used to describe individuals coming together to support-and directly fund-projects by other individuals and organizations. For small businesses and startups, crowdfunding can be an engine for job creation and development. THE EVOLUTION OF CROWDFUNDING The concept of crowdfunding isn't entirely new. It's come about thanks to a progression of other funding ideologies. 24 - Microfinance - - Microlending - - Peer-to-Peer Lending - - Crowdfunding - THE NUTS AND BOLTS Prospective and established small business owners can use crowdfunding platforms to jump-start their next project. Three Models of Crowdfunding %$4 1. Donations, Philanthropy, and Sponsorship 2. Lending 3. Investment THE PROS AND CONS Pros Cons 999 Platform also serves as a marketing tool Often limited on amount of funding you can raise Provides a forum for feedback on the project Exposes project to the public, risking copycats Relatively inexpensive way to raise funds Funds may be subject to securities regulation POPULAR PLATFORMS Crowdfunding sites can connect communities of small investors to small business owners looking for funding. The following are several popular site options. fansnextdoor KICK STARTER .COM quirky RocketHub INDIE GOGO profounder öfficehours Pozible M MicroVentures Cofundo DOES IT WORK? Popular site Kickstarter has put up some pretty impressive figures since its launch two years ago, but not all projects are successful. At a Glance, As of April 2011 $53MIL $40MIL 20,371 PLEDGED - - COLLECTED - - PROJECTS - Success Rates 43% 21% 52% 90% percent of projects with one pledge succeed. 90 percent of projects 1/3 of needed funding succeed. 21 percent of projects don't receive any pledges. percent projects reach are successful. MAXIMIZE YOUR CROWDFUNDING CAMPAIGN So how do you create a successful crowdfunding campaign? Here are the steps. CHOOSE THE RIGHT SITE FOR YOU Some sites have a focus such as arts or SET A REALISTIC TARGET AND TIME LIMIT Asking for too much or too Tittle can affect your project's chances of success. CREATE A CAMPAIGN VIDEO A personal touch pays off. Projects with videos outperform those without by 125 percent. nonprofits. Find the one that fits your business. POST REGULAR CAMPAIGN UPDATES Keep supporters engaged and maintain CONNECT WITH FRIENDS AND FAMILY FIRST Begin with word of mouth among your inner circle, then promote your campaign on social media. OFFER REWARDS Supporters may be more eager to back you if you offer a small incentive. momentum. SNAPSHOT OF VARIOUS PLATFORMS More crowdfunding sites are introduced every year. We take a closer look at a few of the popular options out there. Causes/ Razoo/ Crowdrise TYPE OF ORGANIZATION Kickstarten IndieGoGo Pozible 33Needs Profounder StartSomeGood U.S. 501(c)3s Only For-Profit Enterprises Only Allows Unincorporated Groups Allows Both For- and Non-Profits TYPE OF PROJECT Creative Projects Only Social-Change Projects Only TYPE OF FUNDING Future Revenue Sharing All-or-Nothing Model Keep-What-You-Raise Funding Model Blended Tipping-Point Funding Model OTHER Campaigns Venture Profiles SOURCES: CROWDSOURCING.ORG, STARTSOMEGOOD.COM, KICKSTARTER.COM, MASHABLE, BUSINESSINSIDER, LEXISNEXIS CROWD POWER LETTING THE CROWD FUND YOUR SMALL BUSINESS Crowdfunding is a term used to describe individuals coming together to support-and directly fund-projects by other individuals and organizations. For small businesses and startups, crowdfunding can be an engine for job creation and development. THE EVOLUTION OF CROWDFUNDING The concept of crowdfunding isn't entirely new. It's come about thanks to a progression of other funding ideologies. 24 - Microfinance - - Microlending - - Peer-to-Peer Lending - - Crowdfunding - THE NUTS AND BOLTS Prospective and established small business owners can use crowdfunding platforms to jump-start their next project. Three Models of Crowdfunding %$4 1. Donations, Philanthropy, and Sponsorship 2. Lending 3. Investment THE PROS AND CONS Pros Cons 999 Platform also serves as a marketing tool Often limited on amount of funding you can raise Provides a forum for feedback on the project Exposes project to the public, risking copycats Relatively inexpensive way to raise funds Funds may be subject to securities regulation POPULAR PLATFORMS Crowdfunding sites can connect communities of small investors to small business owners looking for funding. The following are several popular site options. fansnextdoor KICK STARTER .COM quirky RocketHub INDIE GOGO profounder öfficehours Pozible M MicroVentures Cofundo DOES IT WORK? Popular site Kickstarter has put up some pretty impressive figures since its launch two years ago, but not all projects are successful. At a Glance, As of April 2011 $53MIL $40MIL 20,371 PLEDGED - - COLLECTED - - PROJECTS - Success Rates 43% 21% 52% 90% percent of projects with one pledge succeed. 90 percent of projects 1/3 of needed funding succeed. 21 percent of projects don't receive any pledges. percent projects reach are successful. MAXIMIZE YOUR CROWDFUNDING CAMPAIGN So how do you create a successful crowdfunding campaign? Here are the steps. CHOOSE THE RIGHT SITE FOR YOU Some sites have a focus such as arts or SET A REALISTIC TARGET AND TIME LIMIT Asking for too much or too Tittle can affect your project's chances of success. CREATE A CAMPAIGN VIDEO A personal touch pays off. Projects with videos outperform those without by 125 percent. nonprofits. Find the one that fits your business. POST REGULAR CAMPAIGN UPDATES Keep supporters engaged and maintain CONNECT WITH FRIENDS AND FAMILY FIRST Begin with word of mouth among your inner circle, then promote your campaign on social media. OFFER REWARDS Supporters may be more eager to back you if you offer a small incentive. momentum. SNAPSHOT OF VARIOUS PLATFORMS More crowdfunding sites are introduced every year. We take a closer look at a few of the popular options out there. Causes/ Razoo/ Crowdrise TYPE OF ORGANIZATION Kickstarten IndieGoGo Pozible 33Needs Profounder StartSomeGood U.S. 501(c)3s Only For-Profit Enterprises Only Allows Unincorporated Groups Allows Both For- and Non-Profits TYPE OF PROJECT Creative Projects Only Social-Change Projects Only TYPE OF FUNDING Future Revenue Sharing All-or-Nothing Model Keep-What-You-Raise Funding Model Blended Tipping-Point Funding Model OTHER Campaigns Venture Profiles SOURCES: CROWDSOURCING.ORG, STARTSOMEGOOD.COM, KICKSTARTER.COM, MASHABLE, BUSINESSINSIDER, LEXISNEXIS CROWD POWER LETTING THE CROWD FUND YOUR SMALL BUSINESS Crowdfunding is a term used to describe individuals coming together to support-and directly fund-projects by other individuals and organizations. For small businesses and startups, crowdfunding can be an engine for job creation and development. THE EVOLUTION OF CROWDFUNDING The concept of crowdfunding isn't entirely new. It's come about thanks to a progression of other funding ideologies. 24 - Microfinance - - Microlending - - Peer-to-Peer Lending - - Crowdfunding - THE NUTS AND BOLTS Prospective and established small business owners can use crowdfunding platforms to jump-start their next project. Three Models of Crowdfunding %$4 1. Donations, Philanthropy, and Sponsorship 2. Lending 3. Investment THE PROS AND CONS Pros Cons 999 Platform also serves as a marketing tool Often limited on amount of funding you can raise Provides a forum for feedback on the project Exposes project to the public, risking copycats Relatively inexpensive way to raise funds Funds may be subject to securities regulation POPULAR PLATFORMS Crowdfunding sites can connect communities of small investors to small business owners looking for funding. The following are several popular site options. fansnextdoor KICK STARTER .COM quirky RocketHub INDIE GOGO profounder öfficehours Pozible M MicroVentures Cofundo DOES IT WORK? Popular site Kickstarter has put up some pretty impressive figures since its launch two years ago, but not all projects are successful. At a Glance, As of April 2011 $53MIL $40MIL 20,371 PLEDGED - - COLLECTED - - PROJECTS - Success Rates 43% 21% 52% 90% percent of projects with one pledge succeed. 90 percent of projects 1/3 of needed funding succeed. 21 percent of projects don't receive any pledges. percent projects reach are successful. MAXIMIZE YOUR CROWDFUNDING CAMPAIGN So how do you create a successful crowdfunding campaign? Here are the steps. CHOOSE THE RIGHT SITE FOR YOU Some sites have a focus such as arts or SET A REALISTIC TARGET AND TIME LIMIT Asking for too much or too Tittle can affect your project's chances of success. CREATE A CAMPAIGN VIDEO A personal touch pays off. Projects with videos outperform those without by 125 percent. nonprofits. Find the one that fits your business. POST REGULAR CAMPAIGN UPDATES Keep supporters engaged and maintain CONNECT WITH FRIENDS AND FAMILY FIRST Begin with word of mouth among your inner circle, then promote your campaign on social media. OFFER REWARDS Supporters may be more eager to back you if you offer a small incentive. momentum. SNAPSHOT OF VARIOUS PLATFORMS More crowdfunding sites are introduced every year. We take a closer look at a few of the popular options out there. Causes/ Razoo/ Crowdrise TYPE OF ORGANIZATION Kickstarten IndieGoGo Pozible 33Needs Profounder StartSomeGood U.S. 501(c)3s Only For-Profit Enterprises Only Allows Unincorporated Groups Allows Both For- and Non-Profits TYPE OF PROJECT Creative Projects Only Social-Change Projects Only TYPE OF FUNDING Future Revenue Sharing All-or-Nothing Model Keep-What-You-Raise Funding Model Blended Tipping-Point Funding Model OTHER Campaigns Venture Profiles SOURCES: CROWDSOURCING.ORG, STARTSOMEGOOD.COM, KICKSTARTER.COM, MASHABLE, BUSINESSINSIDER, LEXISNEXIS