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How should I prepare for Crowdfunding? Presented by Bigcommerce for UPSummit 2014. Includes a downloadable decision tree and crowdfunding resource guide.
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How should I prepare for Crowdfunding?
Kirsten Knipp @kirstenpetra
@bigcommerce UpSummit 2014
info.bigcommerce.com/UPSummit
Dream Big. Sell More.
#DreamBig
© 2013 Bigcommerce Pty. Ltd.
© 2013 Bigcommerce Pty. Ltd.
Igniting ideas with financing from the masses
© 2013 Bigcommerce Pty. Ltd.
60%
40%
More than half don’t make it … but 40% do!
Source: PCWorld
© 2013 Bigcommerce Pty. Ltd.
Some that do, Crush It!
© 2013 Bigcommerce Pty. Ltd. Source: http://www.appsblogger.com/behind-kickstarter-crowdfunding-stats/
Reality = More Modest Success
© 2013 Bigcommerce Pty. Ltd.
Is Crowdfunding right for your venture?
© 2013 Bigcommerce Pty. Ltd.
It’s all about Marketing Build your Network
© 2013 Bigcommerce Pty. Ltd.
Crowdfunding platforms – many choices
IndieGogo Kickstarter RocketHub Fundable
Launch Year 2008 2009 2010 2012
Total Funding Raised Unlisted, $600M+ 100K Projects Funded
$1.1B+ 60K+ Projects
Unlisted, 10,000 Projects Funded
$113M+ Avg Raise $175K
Types of Projects Creative, SMB & Charity Broad Guidelines & Limited Review
Creative & Product Concept Tight Guidelines (20% get rejected)
Creative, Fashion & Science Very few true Businesses
Startup Businesses Ready to Scale Full Time Entrepreneurs Extremely Flexible
Funding Partial Funding All or Nothing Partial Funding All or Nothing
Equity vs Reward Rewards (considering equity) Rewards Rewards (considering equity)
Equity or Rewards (Jobs Act First Mover)
Fee Structure 4% if hit goal 9% if don’t hit goal +3% Payment Fees
5% + 3% Amazon Payments Fee
4% if hit goal 8% if don’t hit goal +4% Payments Fee
Flat Rate $179/Month, Not a %
Success Rate ~34% ~43% Unknown Unknown
Additional Notes Largest Audience, Lends Credibility & Reach
A&E ‘Project Startup’ TV Partnership
Only accredited investors may fund equity plays until rest of Jobs Act passes Very tight guidelines – great for startups
Honorable Mentions: Kiva, Peerbackers, Prosper, CrowdCube, SomoLend (debt)
© 2013 Bigcommerce Pty. Ltd.
Build momentum with a full campaign
Image Courtesy of RocketHub
© 2013 Bigcommerce Pty. Ltd.
Prepare for the dip & drive momentum
Image Courtesy of RocketHub
© 2013 Bigcommerce Pty. Ltd.
Plan, Prep, Launch: But don’t overthink it PREP:
Messaging & Prebuild Audience
Collateral & Influencers
Apply! Draft
Campaign
Launch! Buzzzzzz
Re-Invigorate Live Events
Home Stretch & Thanks!
T – 8 Weeks T – 4 Weeks T – 2 Weeks Day 0 Day 15 Day 30
You cannot prep enough! • Define roles: DIY or
get help from PR firm
• Vet concept with friends & strangers
• Prepare & Refine Messaging
• Review successful campaiigns
• Define budgetary need & goal
• Outsource Influencer List Building – LinkedIn
Soft Launch & Build Campaign Assets • Get friends,
followers & influencers a sneak preview
• Craft your video – get a professional to help! VIDEO!!!
• Build out your rewards, funding rationale & fulfillment plan
• Build your own website or landing page to link to (301 redirect)
Countdown! • Prioritize your
email lists • F&F Build
speed • Tier 2
Influencers build credibility
• Social proof lets you go after Tier 1 with personal touch
• Draft emails • Draft press release • Identify Co-
marketing targets
Give yourself 24-48 full hours: • Drop all your
emails, social, PR & blog content
• Do personal outreach to Tier 1 influencers
• Monitor earlybird rewards – top up before you max out for momentum
• Have a kickoff party – Give $1 at the door to get momentum
• Breathe …
Ensure you have a plan for the trough: • Every campaign
has a lull in the middle – don’t be unprepared
• Engage in co-marketing with other projects
• Events, Round 2 Press or Updates & Contests work
• Release new rewards for stretch goals
• Compile buzz to date & share it broadly
• Prep for the final peak
Revive yourself for the final push: • Share updates on
your project page & social
• Get ready to redirect all that traffic to your site post-event
• Make any last minute edits – no changes after you hit fund date …
• Celebrate!!! • Get ready to
DELIVER … Reminder: If you don’t fund, You CAN try again …
© 2013 Bigcommerce Pty. Ltd.
Resources help you plan – it’s all been done! Tools
• CrowdMapped – Lists of Portals & Resources
• Kicktraq – Trendlines & shares
• Prefundia – Preview & Crowd Building Tool
• LinkedIn, Mailchimp, All Social Sites
Books / e-Books
• Fundable’s Guide to Equity Crowdsourcing
Great Blog Posts & More
• Crowdfunding Radio Podcast
• Tim Ferriss on $100K in 10 Days – A Few Useful Snippets (and some bunkJ)
• Forbes on Kickstarter Prep
• INC Infographic on Crowdfunding
• 3 Great Crowdfunding Infographics
• HuffPo on Notable Crowdfunding Fails
• Forbes on the ROI of Crowdfunding
• Crowdfunding Stats - % Likelihood to be Funded
• Crowdcrux Crowdfunding Site Comparison
• Wikipedia list of history making successful projects
Download these tips on crowdfunding info.bigcommerce.com/UPSummit
Network & Get Business Tips
@kirstenpetra | @bigcommerce | @ringsafe