Ideavibes London Crowdsourcing - Crowdfunding - Citizen Engagement Workshop

Innovation and change through the crowdPaul Dombowsky

11:00 - 11:30 Arrivals - Buffet Lunch - Networking11:30 - 11:40 Introductions / Thank You11:40 - 11:45 A word from our venue host - Tony Fish (AMF Ventures)11:45 - 12:50 Workshop - Paul Dombowsky from Ideavibes

Highlights from the Crowdconvention12:50 - 13:05 Tony Dhillon from GrowVC - overview of one, practical

example of crowdfunding13:05 - 13:25 Question & Answer Period13:25 - 13:35 Wrap-up

Agenda / Highlights

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Thank you

3

Adam Cranfield - Consultant

Matt Ball – COO and Co-Founder

Our Venue Host

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Tony Fish

Where does innovation happen?

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• Cities• Neighbourhoods• Government Depts.• Small businesses• Educational System• Social System• F1000 Companies• Non-profits

Our Bias

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We see the crowd as having the knowledge, the power, the desire, and the ability to help you make better decisions, solve problems, and fund change or innovation, if given the opportunity.

Overview

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DefinedAn engagement process whereby organizations seek input from either open or closed communities of people, either homogenous or not, to contribute ideas, solutions, or support in an open process whereby the elements of creativity, competition and campaigning are reinforced through social media to come up with more powerful ideas or solutions than could be obtained through other means.

Why Bother?Organizations have a difficult time engaging with their communities to strengthen their relationship and be citizen/crowd focused. Internal or external, the community has ideas that can be harnessed that come from diverse backgrounds, experiences and education.

Crowdsourcing

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Participation Happens – Civic or Brands

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Millennials (born ’91 and after)

Gen Y (born ’81-’91)

Gen X (born ’65-’80)

Boomers (born ’46-’64)

Civics (born ’45 or earlier)

Who is your crowd?

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Supporters

Prospects

S/E Investors

Mailing Lists

Supporters’ Network

Prospects’ Network

S/E’s Network

Mailing List’s Network

The crowd you know The crowd you don’t know

Social Media Makes the Connection

ExplicitExperts

Emergent Experts(community leaders, front

line stakeholders)

General Audience

Who is your crowd?

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CITY

EngagementTargets

Where Innovation / Crowdsourcing Fits

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Community

Open SpaceHow we gather

Social MediaHow we talk

LeadershipHow we inspire &

enable

Open Innovation

CrowdsourcingWhere ideas come from

Two Sides of Crowdsourcing

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Citizen EngagementCommunity / Civic / National

Market EngagementCustomers / Prospects / Partners

Where the conversations are happening?

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Official & Unofficial• Google Groups• Wiki’s• User Groups• Podcasts• Blogs• User Voice• Epinions• Cnet• Reviewsarena• Buzzillions• Tribe Smart

Why not tap into the conversations that are already happening?

Get the crowd working for you.

The Promise of Web2.0

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• Web 2.0 is about 2 way conversations

Web based services and communities characterised by participation, collaboration and sharing of information among users online. Web2.0 applications include wikis, crowdsourcing, blogs and social networking sites which encourage user-generated content (USG) and social interaction online.

Citizen Engagement

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I have a challenge

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• Land use determination – who drives the agenda and the conversation?

• Two approaches• Opportunity driven• Innovation driven

• The difference lies in where the ideas come from

• From the user or the customer• From the supplier

I have a challenge

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Opportunity Driven (supplier) Innovation Driven (customer)

City Posts Challenge

Crowdsourcing used to generate

ideas

Crowd determines their preference

Feasibility Review takes place

Developers invited to respond to specific RFP

City releases RFI

Developers Respond

Short list

Consultation

Study

Selection

Citizen Engagement in Web 2.0 for London 2.0

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• There are many one way conversations happening:• Blogs

• Square Mile Blogger• Londoniscool• London Underground Tube Diary• Dave Hill’s Politics Blog• London Standard• Telegraph Blog

• Podcasts• Dial-Eye-Lama• Editorial Intelligence

• Make no mistake – your citizens want to be involved intransforming the City of today to City 2.0.

• Where is the engagement? Where is the innovation happening?

Driven by Social Media Platforms

• Ideas and information produced by and on behalf of the citizen or the crowd

• Crowd is empowered to spark the innovation that will result in an improved approach to governance

• Move away from ‘Vending Machine Government’

• Responsibility is shared between citizens and staff

Government as a Platform

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Pay Taxes Expect Services Repeat

NYC Citizen Engagement Program

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NYC Example

San Francisco Engage4change Citizen Engagement Program(2 weeks)

• No. of Engagements = 2252• Referrals = 64% from Twitter• Cost = 500 ice cream cones ($1,000)• Humphry Slocombe’s Crowd

= 320,000 twitter followers and Facebook Friends

13

SF Example

Market Engagement

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The opening up of innovation to internal and external input for the development of products in various stages of the product development lifecycle.

Crowdsourcing can be part of an open innovation or social product management strategy.

What is Social Product Management?

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Product Management Lifecycle

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Vision/Need

Define Customer

Define Product

Develop Product

Test Product

Deliver Product

Refine Product

Crowdsource Option: features & functionality

Capture new customers with options & features they are looking for.

Crowdsource Testing – early adopters reward

Socializing requirements and prioritization gathering improves decision making

How Product Development Used to Happen

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Social Product Development/Open Innovation

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Build a Social Product Strategy

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• Reach customers & prospects where they live – join in the conversations that are happening already

• Capitalize on valuable customer and prospect insight• Develop a culture of collaboration• Implement the right social technology to get the job done• Communicate results and intentions and be open as

possible• Let conversations happen in the open• Be crowd friendly on an ongoing basis

Sources of Innovation

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Sources of Innovation

Internal R&D

Customers

Experts

PartnersSuppliers

Prospects

Other internal

team members

Does participation require a reward?

Do people contribute for the good of the brands they like?

How do you democratize the input?

Innovation: Crowdsourcing vs The Survey

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Crowdsourcing Surveys

• Lends itself to diversity of participation• Fewer barriers to participation• Drives innovation – new ideas from left

field that have merit• Easy to interpret – the crowd generally

makes things clear• Comments are focused

• Great for solidifying preconceived ideas or directions

• Hidden• Requires interpretation which is open

to biases by reviewers• Doesn’t encourage creativity

IdeaStorm was created to give a direct voice to Dell’s customers and an avenue to have online “brainstorm” sessions to allow them to share ideas and collaborate with one another and Dell. Their goal through IdeaStorm is to hear what new products or services you’d like to see Dell develop.

In almost three years, IdeaStorm has crossed the 10,000 idea mark and implemented nearly 400 ideas!

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Product Development - Branded

Quirky is an all in one product development shop for inventors.

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Product Development - Inventions

Ignite uses crowdsourcing for the source and crowd directed agenda at an upcoming event.

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Conference Agenda

According to Forrester Research (2010),71% of people say they trust the opinionsof family, friends and colleagues as a sourceof information on products and services.

Their crowd or tribe.

Where does trust sit?

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It all starts with a Question or Problem

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• Needs to be:– Clear and compelling– Not leading– Allow for open innovation– Encourage participation– Allow for outliers to feel comfortable

The Appeal

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• Crowdsourcing surfaces new perspectives• Invites participation from nontraditional

sources • Infuses real energy into the process of generating ideas

and content• Empowers people when they feel their voice is being heard• Technology can enable participation by disenfranchised

(ie. PCs in libraries/shelters with citizen engagement campaigns)

• Builds engagement and relationships with new audiences

Crowdsourcing Pros and Cons

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PROS• Reduced time to market

• Reduced risk due to early customer input

• Increased customer lifecycle value

• Broader source of innovation

• Strengthened brand through participation

• Organizations can’t have all the brightest people on staff

• Ideas don’t have to be discovered by internal R&D teams to be capitalized upon

• Benefits from varied experiences

CONS• Less control

• Needed trust not easily come by in some organizations

• Requires community management

• Suffers if crowd is too narrow

• Disruptive to traditional timelines for product roll outs

• First attempt is risky until you understand your crowd

• Need to know your target audience

Things to Watch For

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• Excessive lobbying and promotion• Narrow crowds product narrow results• No follow-through causes creditability hit• If you say you are generating solutions for X, communicate

what happened and why• Broad ideation campaign descriptions will result in less focused

results BUT too narrow will restrict creativity• Dismissing ideas that seem far fetched• Ideation often requires refinement – understanding what your

crowd is saying by ‘x’

Crowdfunding (sometimes called crowd financing, crowd sourced capital, or street performer protocol) 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. Crowdfunding occurs for any variety of purposes, from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company or small business[1] or creating free software.

What is Crowdfunding?

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Motivating Funding

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• Percentage of Ownership (regulatory backwater in most countries)

• Percentage of profits• Rewards (points or the CD / Movie)• Tax receipt

Models

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• The Arts• Kickstarter• IndieGoGo

• Start-ups• Peerbackers• GrowVC• Crowdforce• Ceedme• RocketHub• Fundedbyme

• Charities• Fundchange• Crowdrise

• Lending – Charities• Kiva

Example - Kickstarter

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Example - Fundchange

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Funding source for entrepreneurs

Revenue ShareDebtEquity

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Examples: Profunder (US only)

The Appeal

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• Uses social media to get the word out• Taps into your crowd and your crowd’s crowd

• It’s social – the crowd promotes projects it likes• It’s social – the crowd won’t promote projects that aren’t

shareable• Success comes to those that actively build a crowd

• A challenge for organizations new to social media• It’s the free market at work

• It’s the free market at work• Build stickiness to the project

• Need to pay attention to write-up to inspire funders

Benefits & Challenges

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Things to keep in mind: • Crowdfunding success comes quickest to organizations that are social –

media-aware and engaged. If your organization is not yet social media-enabled, it will take time and human and financial resources to do so.

• Because your efforts are only as good as the crowd you are able to mobilize to your cause, it makes sense that your organization strategically manages and promotes its brand online.

• Make sure your target audience is online and will give online• If you opt to post your projects on established crowdfunding sites, do your

homework – be careful of the company you keep.

Integrating Crowdfunding into Your Organization

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How an Engagement Platform Works

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A Platform Could Help

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• Easy to set-up and deploy• Able to run multiple campaigns at once• Can run Crowdsourcing and Crowdfunding Campaigns• Build stickiness and community around those that engage

(sign-in and see past votes, comments, ideas)• Hosted solution (in Canada)• Able to be implemented on existing website or set-up in new,

destination site• Social Media connected• One of few sub $1000/month solutions

Ideavibes Citizen Engagement Platform

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How Does Ideavibes Compare?

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• Enterprise Collaboration or Idea Management– Large – multi-functioning platforms for Idea Management– Integrated into change management and process improvement

lifecycles– Chaordix, Bright Idea, etc.

• Middle-tier Focused Crowdsourcing Apps– Purpose-built customizable apps focused on crowdsourcing– Narrow or wide focus– Multiple crowdsourcing and crowdfunding campaigns– Ideavibes, Spigit– Note – Ideavibes is only white label crowdfunding platform available

• Ad-hoc website or Social Media widgets– Developed by web teams with basic functionality– Functionality as opposed to business process driven

Thank youPaul Dombowsky | 613.878.1681 | paul@ideavibes.com

www.ideavibes.com

Everyone funding startups

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Grow VCEveryone Funding Startups

June 1, 2011

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Vision The next Silicon Valley is not a location, it is a platform

and community on the Internet

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MissionProvide the platform, service tool kit and partner network

for the Virtual Silicon Valley

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Investment models

www.growvc.com56

1. Startup selects the funding target

2. Members make micro-investments ($20, $50 or $100)

3. The funding target is divided into 10 parts; startups get money always when a 1/10 is full

4. Standard GrowVC investment agreement

5. GrowVC manages the investment

1. Startup selects the funding target

2. Members make investment proposals

3. Startup can accept or reject

4. Local law firm makes the investment agreement based on standard Term Sheet

5. The investor manages the investment

1. Startup makes an offer: competence, targets (hours/achievements), ownership model to calculate compensation

2. An expert makes a proposal

3. Startup can accept or reject the proposal

4. Standard work investment agreement

5. Startup manages work and the expert the investment

1. Community Fund 2. Private Investment 3. Work Investment

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WE HAVE A DREAM:more equal opportunities,

where entrepreneursand ordinary people unite

to accelerate innovation

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How to democratize startupinvestments: examples

A company like Facebook A company collects totally $20M and achieves $10B valuation If the company has 20 equal investors, each of them invested $1M

and gets $500M in the exit If the company has 100,000 investors, each of them invested $200

and gets $100,000 in the exit

A more typical startup A company collects totally $3M and achieves $100M valuation If the company has 3 equal investors, each of them invested $1M and

gets $33M in the exit If the company has 10,000 investors, each of them invested $300

and gets $10,000 in the exit

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Which model has greater influence on people, business and economy

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globaltransparent

opencollaborative

efficient

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1. P2P and Crowd-fundingvia Community Fund investments

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2. Match-making and negotiation tools

for Private investments

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3. Reward professionalsWork investment scheme

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Browse investments when you have time

www.growvc.com63

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The Grow VC platform enablesmany models, example

www.growvc.com64

• Direct investments

• Community micro-

investments• Support for

investment process and

materialsCo-investors

Private investments

Community FundMicro-investments

Start-upXXX

Start-upYYY

Start-upZZZ

Investment decisions:• Community

• Co-investors have automated model with veto right

Investment process:Managed by community

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www.growvc.com65

Initial growth: customer adoption

The first full service was launched on February 15, 2010

Statistics on April15, 2011: Registered users: 8,256 Startups, total: 1,986 Startups, open funding round: 98 Total available capital: USD 16,668,175 Total requested capital: USD 20,021,502 Average monthly growth: over 400 new members a month

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First local services:India and China

www.growvc.com66

Top level local local teams: including VC and finance professionals,serial-entrepreneurs. Localized for the local needs and ecosystem.

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Tony DhillonHead of European Operationstony@growvc.comTel (UK): +44 7961 848 586Skype: tony.dhillon10 - Twitter:@tdhillon10

www.growvc.comTwitter: @growvc