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 JOBS (Jumpstart Our Business Startups Act)

 Really it started with

PBR Story
 February 2010
 $200 million from 5 million beer fans
 SEC
 No accredited investors
 Laws prohibited regular investor in this type of deal

 Foundation of Crowdfunding
 No beer was harmed during this campaign
 November(ish) 2009 - Michael Migliozzi and
Brian Flatow
 www.buyabeercompany.com
 “Crowdsourcing”
 $300 million
 Compensation for investor?
 “Crowdsourced Certificate of Ownership”
 Beer equal to the amount pledged
 ACT OF CONGRESS
 Startup Exemption Team
 Startup Exemption Framework Story
 WSJ

JOBS Act
 Crowdfunding
 Describes multiple different funding relationships between
individuals and organizations connected via the Internet.
 Token crowdfunding
 Raising NON-EQUITY capital in exchange for “tokens”
 Crowdfund investing
 Section 4(6) of the JOBS Act
 Provides exemption from registration
 SEC registered crowdfunding platform *
 Regulation D crowdfunding
 Equity and debt capital by private companies Rule 506 of
Regulation D (amended by the JOBS Act)
 Rule 506 Crowdfunding
Compare the Bills
 Seed round funding  Term Sheet
 Series A funding  Offering Memorandum
 Venture Capitalists  Equity Security
 Private Equity Funds  Debt Security
 Angel Investor  Revenue-based Security
 Private Share
 Issuance limit
 $1 million in any 12 month period
 Facilitation
 Small investments by many people
 Annual income / Net Worth restrictions
 Time restrictions
 CrowdFunding Initiative (CFI)
 Lowers the failure rate of small businesses
 Augments and supports capital formation
 No socioeconomic discrimination
 Tipping Point
 Rewards vs Equity
 Ownership in the business
 Automated
 Launcht
 Niche platforms
Humor Break
 Majority of projects are $1000 to $100,000
 Less than 1% of funded projects are over $100k
 Will not replace
 Venture Capital
 Commercial Lending
 Angel Investor
 Private Investment
 Constant upkeep and promotion
 Keep the buzz buzzing
 Kickstarter  Ulule
 Indiegogo  Earlyshares
 RocketHub  Startsomegood
 GoFundMe  Sportfunder
 Razoo  33needs
 Crowdrise  ChipIn
 Pledge Music  Buzzbnk
 Sellaband  InventionBuy.com
 Appbackr  Crowdtilt
 Crowdfunder  Go4Funding
 CrowdLever  Cumplo
 Fundarole  Dancefunder
 iCrowd  CrowdBnk
 Petridish  FundAGeek
 2011
 $1.5 billion raised worldwide (63% increase)
 1.2 million successful campaigns
 Funds pledged to paid ratio declined slightly
 April, 2012 – 452 platforms
 Over $2 billion
 Kickstarter  Peerbackers
 Indiegogo  Go Fund Me
 Rockethub  Razoo
 Crowdfunder  Crowdrise
 Quirky  PledgeMusic
 CoFolio  Sellaband
 Start Some good  Appbackr
CFP Site Model Focus
Kickstarter kickstarter.com AoN Art / Creative
Indigogo indiegogo.com KiA / AoN Any
Rockethub rockethub.com KiA Varies
Crowdfunder crowdfunder.com Unknown CF 2.0
Quirky quirky.com Unknown Inventions
CoFolio mycofolio.com Equity Local Small Biz
Start Some startsomegood.com Unknown Socially
Good Responsible
Peerbackers peerbackers.com Kia / AoN Any
Razoo razoo.com KiA Indiv. / Cause / NP
Go Fund Me gofundme.com KiA / Aon Any – Personal
Crowdrise crowdrise.com KiA Celeb fundraising
Appbackr appbackr.com Sales based Mobile Apps only
 2012 Statistics
 $319 million pledged
 $274 million collected
 2.24 million backers
 709 million page views
 86 million unique users
 About 50% of projects funded
 Art  Music
 Comics  Photography
 Dance  Publishing
 Fashion  Technology
 Film  Hardware
 Food  Software
 Games  Theater
 TikTok+LunaTik
 Sought $15k, raised nearly $1 mil
 Watch
 Elevation Dock
 Sought $75k, raised nearly $1.5 mil
 Dock
 E-Paper Watch
 Sought $100k, raised….
 Another Watch
 2012 Statistics
 Projects raised 20% more than in 2011
 Core campaigns ran 49 days (60)
 Successful campaigns ran 39 days
 14% of campaigns had a single donor refer more
contributors than the project owner
 Let’s Build a Goddamn Tesla Museum
 $1.37 million of $850k goal (over 33,000 contributors)
 Who Gives a Crap
 $66,548 of $50k goal
 Yellow Jacket iPhone stun gun
 $100,751 of $100k goal
 BugASalt
 $15,000 goal
 $577,541
 BugASalt
Romeo and Juliet
Do’s and Don’ts
 Do
 Research
 Token (Reward) Selection
 Target Audience
 Pitch Video
 Funding Goal
 Network, Network, Network
 Update, Update, Update
 Study other projects
 Funded and not funded
 Similarities / Differences
 Market
 Who are they?
 What’s your hook?
 Uniqueness or Differentiation
 Are the rewards logical?
 Do they make sense
 Tiers
 $25
 $50 (25% of all pledges)
 $100
 Limited Offering
 Tangible vs. Personal / Virtual / Professional
 What’s your hook?
 Personalize
 Why would I give you money?
 Static Entertainment
 Morningside Students
 Morningside Alumni
 Parents of current/former college students
 Clear / Natural
 Approach
 Humorous
 Serious
 Quirky / Imaginative
 Details
 Call to action
 Interesting – catchy
 Length of video
 Reasonable
 Previous campaigns
 Successful
 Failures
 Compelling Rewards
 Funding Ranges
 Tiers
 Engaging
 Exploit your network
 Facebook
 LinkedIn
 Twitter
 Google+
 YouTube
 Pinterest
 Email
 Updates on campaigns
 Time
 Funding request too high
 Poor (flimsy) rewards
 BalconyTV
 $1 Tom will sing on the Dublin balcony
 $5 Tom will dance on the Dublin balcony
 $20 We will send you good karma from the balcony
 $50 Give a special shout out in BalconyTV episode
 All the same…
 Pen type-A (retail price $99)
 $2500 request
 Produce a run of pens for $50 each
 $1 A thank you note on website (warm fuzzy)
 $25 Super thank you credit on website and a
drawing of an invention
 $50 A Pen
 $75 Pen + autographed drawing
 $100 Pen + Pen for friend
 $150 Pen + Pen for two friends
 Requested $2500, received $282k
 Pre campaign strategy
 Platform
 Leverage your networks
 Prepare the perfect campaign
 Remember WHY people pledge
 Perks / Rewards / Tokens
 Update & Follow up
 Static Entertainment – Indiegogo and
Kickstarter
 www.static-entertainment.com
 Discover My Campus – Appbackr
 FC2000 – Quirky and Indiegogo
 Rebranding campaign
 http://www.fielders-choice.com/
 Slide N Glide – Quirky and Indiegogo
 http://www.slidenglidetray.com/
 Cell:
 712 870 0934
 Email:
 dan@crowdfundiowa.com
 Twitter:
 @dwubIA
 Blog:
 crowdfundiowa.com
 LinkedIn:
 www.linkedin.com/pub/dan-wubbena/b/810/120/

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