Insights and thoughts on the rise of the crowdfunding market - keynote Martijn Arets

WWW.COLLABORATIVE-ECONOMY.COM / @MARTIJNARETS / [email protected]

CROWD EXPEDITION

INSIGHTS AND THOUGHTS ON THE DEVELOPMENT OF THE CROWDFUNDING MARKET AS A PART OF AN EMPERICAL RESEARCH ON THE COLLABORATIVE ECONOMY


CROWD EXPEDITION

1. CONTEXT & RESEARCH 2. DUTCH CROWDFUNDING MARKET 3. CROWDFUNDING COMPARED TO

SHARING ECONOMY 4. KEY DILEMMAS AND CHALLENGES 5. RECOMMENDATIONS


CROWD EXPEDITION

CROWDFUNDING

STUFF

MONEY

KNOWLEDGE

LABOUR

DEMAND

CROWDSOURCING

SHARING ECONOMY

‘GIG’ ECONOMY

STUFF

MONEY

KNOWLEDGE

LABOUR

SUPPLY

COLLABORATIVE (PLATFORM/P2P) ECONOMY


CROWD EXPEDITION

THIS WILL INFLUENCE EVERY INDUSTRY THE NEXT 10 YEARS.

BUT…….


CROWD EXPEDITION

“WHAT IS THE REAL ADDED VALUE AND POTENTIAL OF THE COLLABORATIVE ECONOMY, AND WHAT HAS TO CHANGE TO MAKE THIS A SUSTAINABLE MODEL FOR THE FUTURE?”


CROWD EXPEDITION

TODAY:

SOME INSIGHTS AND THOUGHTS ON THE DEVELOPMENT OF THE CROWDFUNDING MARKET


CROWD EXPEDITION

METHODS - INTERVIEWS (+300 IN 12 COUNTRIES) - ACTIVE PARTICIPATION (DEMAND AND

SUPPLY) > RANDOM INVESTMENTS IN +200 CAMPAIGNS, ASSISTING SEVERAL PROJECTS, RUN 3 CAMPAIGNS MYSELF

- ANALYSE EXPERIENCE AND PROMISES PLATFORMS

- LITERATURE - FEED THE DISCUSSION BY ONLINE

PUBLICATIONS AND VIDEOS


CROWD EXPEDITION




CROWD EXPEDITION

+150 CROWDFUNDING PLATFORMS ACTIVE ON DUTCH MARKET


CROWD EXPEDITION

+150 PLATFORMS ACTIVE ON DUTCH MARKET

SOURCE: DOUW&KOREN

donation

debt

convertible

equity


CROWD EXPEDITION

+150 PLATFORMS ACTIVE ON DUTCH MARKET

SOURCE: FUNDWIJZER.NL

10 biggest crowdfunding platforms on Dutch market


CROWD EXPEDITION




CROWD EXPEDITION

CROWDFUNDING VS SHARING

• HIGHLY REGULATED MARKET > HIGH ENTRANCE BARRIER VS LOW/NOT/GREYAREA REGULATED

& LOW ENTRANCE BARRIER

• 2 YEARS AHEAD ON SHARING & GIG ECONOMY

• IMPACT OF EVERY NEW ASPECT IN COLLABORATIVE ECONOMY IS BIGGER ON SOCIETY

• SPEED OF ACCEPTANCE BY MARKET IS SIMILAR IN EUROPE (IF YOU DON’T LISTEN TO THE

MARKETERS)

• NOT EASY TO SCALE INTERNATIONALLY (LENDING & DEBT)

• LOCAL TRANSACTIONS (COMMUNITY)

• FROM ‘DOING GOOD’ TO ‘DOING BUSINESS’ WHEN GROWING


CROWD EXPEDITION



#1


CROWD EXPEDITION

RESPONSIBILITY OF PLATFORMS


CROWD EXPEDITION

Q: HOW MUCH RESPONSIBILITY DO YOU TAKE AS A PLATFORM?

responsibility

abilit

y to

sca

le

low high

high

low


CROWD EXPEDITION


responsibilitylow high

high

low

donation & reward based

lending & equityab

ility

to s

cale


CROWD EXPEDITION


responsibilitylow high

high

low

Kickstarter

Collin Crowdfundab

ility

to s

cale


CROWD EXPEDITION

VARIABLES

• CHECK IDEA, BUSINESSPLAN, FINANCIALS

• PERSONAL COMMUNICATION BEFORE, DURING AND AFTER

• AVERAGE INVESTMENT: KICKSTARTER <10K, COLLIN CROWDFUND +/- 100K

• SUCCES RATE: KICKSTARTER 31%, COLLING CROWDFUND +90%

• PROJECTS ACCEPTED ON PLATFORM: KICKSTARTER NEARLY ALL, COLLIN CROWDFUND: 25%

#2


CROWD EXPEDITION

DEFAULTS AND RISK • WHAT ARE THE REAL NUMBERS?*


CROWD EXPEDITION

PRACTICAL CASE BY AN INVESTOR

3 PLATFORMS (GVE, KOM, LDH), 8-25 INVESTMENTS PER PLATFORM

GVE: Promise 8,0%, Costs 0,9%, Default*25%, Expected 2,1%

KOM: Promise 7,0%,Costs 0,9%, Default*10%, Expected 4,1%

LDH: Promise 3,5%, Costs 0,0%, Default*00%, Expected 2,5%


CROWD EXPEDITION

PRACTICAL CASE BY AN INVESTOR

3 PLATFORMS (GVE, KOM, LDH), 8-25 INVESTMENTS PER PLATFORM

GVE: Promise 8,0%, Costs 0,9%, Default*25%, Expected 2,1%

KOM: Promise 7,0%,Costs 0,9%, Default*10%, Expected 4,1%

LDH: Promise 3,5%, Costs 0,0%, Default*00%, Expected 2,5%

SOUNDS FAMILIAR???


CROWD EXPEDITION

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#2


CROWD EXPEDITION

DEFAULTS AND RISK • WHAT ARE THE REAL NUMBERS?

• HIDDEN AGENDA OF PLATFORMS: • THEY HAVE THEIR STORY TO SHARE • WHAT IS THEIR ROLE? FINANCIAL ADVISORS?


CROWD EXPEDITION




CROWD EXPEDITION

RECCOMENDATIONS

• CONSENSUS ABOUT COMMUNICATING DEFAULTS

• BETTER COMMUNICATION TO DEMAND & SUPPLY ABOUT RISKS > KICKSTARTER IS NOT A

STORE, TEST UK CROWDFUNDING

• REGULATIONS ON EUROPEAN LEVEL WILL OPEN THE MARKET

• DIFFERENCE BETWEEN CROWDFUNDING AND CROWD FINANCING > GOOD FOR REGULATION,

RESEARCH, ETC.

MORE INFORMATIONWEBSITE

250+ INTERVIEW VIDEOS

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OFFICE

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Insights and thoughts on the rise of the crowdfunding market - keynote Martijn Arets