Tim WrightTim Wright

Innovative Approaches To Fundraising For Parks And Greenspaces

CrowdfundingCrowdfundingThe Grassmarket Centre

Thursday, 3 March 2016

Crowd EconomyCrowd EconomyBusiness Advisory FirmBusiness Advisory Firm

www.twintangibles.co.ukwww.twintangibles.co.uk

@twintangibles@twintangibles

Crowdfunding is a method of raising money from a Crowdfunding is a method of raising money from a distributed group of funders (the crowd) who provide a distributed group of funders (the crowd) who provide a large number of small sums forming a significant total large number of small sums forming a significant total

when aggregated together.when aggregated together.

$34 BillionGlobal value of Crowdfunding in 2015

$2.7 BillionGlobal value of Crowdfunding in 2012

TechnologicalSocial and Collaborative tools, Platforms

SocietalEmpowerment, ecommerceEmpowerment, ecommerce

EconomicCapital Constraint, Investment Opportunity Capital Constraint, Investment Opportunity

Cro

wdf

undi

ngG

RO

WTH

Four Models of Crowdfunding

DONATIONDONATION

REWARDREWARD

LENDINGLENDING

EQUITYEQUITY

Funds collected are gifts or donations with no tangible return to the provider.

DONATION

Platforms – Donation

Just Givinghttps://www.justgiving.com/

Yimbyhttps://www.yimby.com/

MyParkScotlandhttp://www.mypark.scot/

“Rewards” or “perks” of different value are offered to supporters to purchase.

REWARD

Platforms – Perk or Reward

Kickstarterhttps://www.kickstarter.com/

Indiegogohttps://www.indiegogo.com/

Crowdfunderhttp://www.crowdfunder.co.uk/

BloomVChttp://bloomvc.com/

A loan is constructed from many small loans collected from the crowd.

LOAN

Platforms - Lending

Funding Circlehttps://www.fundingcircle.com/

Rebuilding Societyhttps://www.rebuildingsociety.com/

Lending Crowdhttps://www.lendingcrowd.com/

Shares are sold in small parcels to a large group of investors.

EQUITY

Platforms - Equity

Crowdcubehttp://www.crowdcube.com/

Seedrshttps://www.seedrs.com/

Crowdfunderhttp://www.crowdfunder.co.uk/

ShareInhttp://www.sharein.com

Additional VariationsAdditional Variations

Keep it allYou get to keep whatever you raise

All or nothingYou get to keep anything only if you reach your target

DIYYou run your campaign “of platform”

Hybrid modelsA mix of funding

Crowdfunding working in all sectors

But...it’s so much more than money!

More diverseMore diverseCloser to marketCloser to marketLower costLower costQuick moneyQuick moneyPatient moneyPatient money

AdvocacyAdvocacyExpertiseExpertiseAsset DevelopmentAsset DevelopmentInward InvestmentInward InvestmentValidationValidation

Understanding Alternative Finance - Nesta, University Cambridge 2014

Non Financial Support

a few

cases

Annan Harbour

£6,002£6,002the crowdthe crowd

£4,500£4,500Envirocentre Envirocentre skills pledgeskills pledge

£10,300£10,300LocalLocal

CouncilCouncil

£22,500£22,500FLAGFLAGMatchMatch

FundingFunding

++

++

++

TOTAL RAISED

£43,302£43,302Crowd raised £6,002

Received £36,000

Reward CrowdfundReward Crowdfund

Average Success Rates

30% 75%with

coaching

How To Do It?

The TAMP Process

TT Targets

AA Audit

MM Method

PP Plan/Prepare

The Purpose of TAMP is to: Establish if crowdfunding is right

for your project. Show how ready you are to

crowdfund. Analyse which form of

crowdfunding is best for you. Build a plan that will help you to

run a successful crowdfunding campaign around.

Targets

Why are you doing this?What do you need?When do you need it?Who are you targeting?

Audit

AssetsSkillsResourcesTools

Method

RewardEquityLendingDonation

All or nothingKeep it allDuration

CrowdcubeKickstarterMyParkScotlandFunding CircleDIY

ModelModel FormForm PlatformPlatform

Prepare & Plan

ResourcesWhat do you need?

Publishing PlanChannels, Content, Timing, Monitoring, Responding

ResponsibilitiesWho will do what?Crowd

Fans, Influencers, Communicators

ScheduleWhen will things happen?

3 Planning Phases

Before

After

During

•Resource development•Testing messaging•Due diligence•Identifying targets•Building awareness & anticipation

•Promotion & outreach•Maintaining momentum•Growing & deepening•Tracking, responding & reflecting

•Fulfilling & thanking•Retaining•Nurturing and growing•Exploring & harvesting

Finding Your CrowdFinding Your Crowd

Primary

Secondary

Tertiary

Followers

Communicators

Influencers

Components of a Good Campaign

Run Your Own CampaignPreparation, Preparation, PreparationGet the Messaging RightGet off to a Good StartMonitor, Respond, UpdateShorter is Generally BetterVideo, Video, Video

WorkshopWorkshopSplit into 4 Groups

•Read Case Study•Discuss It •Make Some Plans•Write It Up

Feedback To The Room 10 Minutes Per Group

5 Minutes

50 Minutes

Be Creative!

• Targets• Audit• Building your crowd• Messaging• Channels• Scheduling

Key AreasKey Areas

Tim WrightTim Wright

Innovative Approaches To Fundraising For Parks And Greenspaces

CrowdfundingCrowdfundingThe Grassmarket Centre

Thursday, 3 March 2016