Crowdfunding 101

Presented by

Chris Abdur-Rahman Blauvelt

chris@launchgood.com

WhatisCrowdfunding?

•  Age-oldconcept:Acrowdofpeoplecometogethertofundaproject– E.g.family&friendshelpingalovedonea>eraccident

•  Today:Acrowdofpeoplecometogetheronlinetofundaproject– E.g.Collec@ngDona@onsforvic@msofSanBernardinoshoo@ng

TheKEYIdea

TheCrowdcomesbeforetheFunding

1.   SocialCapital:Yourabilitytoraisedependsonyourexis@ngsocialcapital

2.   Publicity:Crowdfundingismoreaboutpublicitythanfundraising

TypesofCrowdfundingDONATION

MoneyraisedforacauseIncen<ve:goodcause,sen@mentalrewards(e.g.mugs)

Muslims4SBraises$208k

PRE-SALE

Pre-sellingaproductIncen<ve:theproduct,supportentrepreneurism

NadoonaDVDraises$18k

DEBT

Low/no-interestloansIncen<ve:empowerindividuals

Khalilahraises$2kforcar

EQUITY

RaisinginvestmentIncen<ve:Returnoninvestment

Alchemiyaraises$100kfor

MuslimNeFlix

$100-$100,000 $5,000-$500,000

$100-$10,000 $50,000-$500,000

CrowdfundingExample:NadoonaTitle&Tagline

Pitch•  Video•  Images•  Headers•  Text

Goal•  Financial•  Deadline

GivingLevels•  Rewards•  Impact

Goodvs.BadCrowdfunding

Bad Good

Purpose Opera@ngfunds Specificproject

Needs Money Publicity&Money

FinancialGoal >$100k $1-20k

SocialNetwork Non-existent Thousands

Team Soloopera@on 4+allpushingit

RealityofCrowdfunding

1.   It’sHard:<10%ofprojectshittheirgoal2.   It’sCrazy:80%offundsinfirst&last3days3.   It’sEveryone:80%ofdona@onsfromsmall

donors,but50%offundsfromlargedonors4.   It’sNotRocketScience:Facebook&Twieer

s@lldon’tbeatanole’fashionedphonecall

SecretstoSuccess

1.  Bepassionate!2.  Workasateam3.   Prepare2+weeksaheadof@me4.  Beemo<onal,notlogical5.  Neverquit6.  Havefun!

Ac@vity

(NmepermiOng)•  Formsmallteams(2-4people)•  GotoLaunchGood.com,createyourownmockcrowdfundingcampaign

•  Presenttoroom!