Health Services Innovation Hub

Bridging the innovation gap, improving care today

Crowdfunding and its application to university fundingAlexa I. Ruppertsberg

Health Services Innovation Hub

Bridging the innovation gap, improving care today

What is crowdfunding?

the collective effort of individuals who network and pool their money, usually via the Internet, to support efforts initiated by other people or organizations.

2008: financial crisis -> alternative finance 2012: 670 CFPs raised US$ 2.7 bn High-growth early stage industry: £15bn in

2015 in UK? (↔ £115bn FS industry) VOLCROWE - a £750k EPSRC project

Health Services Innovation Hub

Bridging the innovation gap, improving care today

Forms of crowdfunding

Equity- and lending- based: largest funds/project; small category; fast growing UK: 2012 - £4M; 2013 - £28M, 700%

Donation- and reward-based: smaller funds/project; largest category

Health Services Innovation Hub

Bridging the innovation gap, improving care today

from NESTA

->World Bank report; NESTA: Banking on each other, Peer-2-Peer lending, Venture crowd

Health Services Innovation Hub

Bridging the innovation gap, improving care today

from NESTA

Health Services Innovation Hub

Bridging the innovation gap, improving care today

from crowdsourcing.org

Health Services Innovation Hub

Bridging the innovation gap, improving care today

How does it work?

Percentage based commission: around 5% + payment processing fees (3-5%) +VAT on fees

All-or-nothing; success rate: ~42% Keep-what-you-raise 45% of CFPs: deposit in third party

accounts 63% of CFPs: PayPal Currency!

Health Services Innovation Hub

Bridging the innovation gap, improving care today

from crowdsourcing.org

Health Services Innovation Hub

Bridging the innovation gap, improving care today

What’s in it for us?

Is it easy money for: Student projects Research projects Alumni fundraising Start-ups PG studentships (Studentfunder) ?

Is it a way of engagement?

Health Services Innovation Hub

Bridging the innovation gap, improving care today

Campaign: 4Ps: people, passion, participation, perks

Social dimension: networks & media Who checks? How to exit? (equity)

Does it sound too good?

->NESTA: Working the Crowd

Health Services Innovation Hub

Bridging the innovation gap, improving care today

The others

University of York: Yustart http://www.yorkspace.net/yustart

University of Southampton https://southampton.hubbub.net/

University of Edinburgh, ERI http

://www.cgplconsulting.co.uk/resources/Invited%20Talk%20-%20Ian%20Murphy%20-%20ERI%20Presentation%20on%20Crowdfunding%20and%20Carbomap%20January%202014.pdf

Health Services Innovation Hub

Bridging the innovation gap, improving care today

Why and why not?

Profile Marketing Engagement Feedback

Reputation IP protection Donor exhaustion Public fear of abuse Investor, all high-net

worth ?

Health Services Innovation Hub

Bridging the innovation gap, improving care today

Links

Crowdfunding Industry Report (May 2012) http://www.crowdfunding.nl/wp-content/uploads/2012/05/92834651-Massolution-abridged-Crowd-Funding-Industry-Report1.pdf

Crowdfunding’s potential for the developing world (2013), by the World Bank http://www.infodev.org/infodev-files/wb_crowdfundingreport-v12.pdf

NESTA: Crowding in (December 2012 ) http://www.nesta.org.uk/sites/default/files/crowding_in_report.pdf The Venture Crowd (July 2012) http://www.nesta.org.uk/sites/default/files/the_venture_crowd.pdf Working the Crowd (May 2013) http://www.nesta.org.uk/sites/default/files/working_the_crowd.pdf The rise of future finance (December 2013) http://

www.nesta.org.uk/sites/default/files/the_rise_of_future_finance.pdf Banking on each other: peer-to-peer lending to business (April 2013) http://

www.nesta.org.uk/sites/default/files/banking_on_each_other.pdf

The Conversation (https://theconversation.com/uk): crunch-time-for-crowdfunders-as-regulation-looms: crowdfunding-is-a-boost-for-science-but-it-cannot-replace-core-state-investment

http://www.auril.org.uk/NewsandEvents/tabid/1251/articleType/ArticleView/articleId/2958/New-Ways-of-Innovating-Old-Ways-of-Working.aspx