Presentation given at Innovation Warehouse on June 20/11 focused on crowdsourcing and crowdfunding for start-ups, non-profits, charities, cities, etc.

1. Innovation and change through the crowd Paul Dombowsky

2. Agenda / Highlights 11:00 - 11:30 Arrivals - Buffet Lunch - Networking 11:30 - 11:40 Introductions / Thank You 11:40 - 11:45 A word from our venue host - Tony Fish (AMF Ventures) 11:45 - 12:50 Workshop - Paul Dombowsky from Ideavibes Highlights from the Crowdconvention 12:50 - 13:05 Tony Dhillon from GrowVC - overview of one, practical example of crowdfunding 13:05 - 13:25 Question & Answer Period 13:25 - 13:35 Wrap-up 3

3. Thank you Adam Cranfield - Consultant Matt Ball – COO and Co-Founder 3

4. Our Venue Host Tony Fish 3

6. Neighbourhoods

7. Government Depts.

8. Small businesses

9. Educational System

10. Social System

11. F1000 Companies

12. Non-profits2

13. Our Bias We see the crowd as having the knowledge, the power, the desire, and the ability to help you make better decisions, solve problems, and fund change or innovation, if given the opportunity. 2

14. Overview 2

15. Crowdsourcing Defined An engagement process whereby organizations seek input from either open or closed communities of people, either homogenous or not, to contribute ideas, solutions, or support in an open process whereby the elements of creativity, competition and campaigning are reinforced through social media to come up with more powerful ideas or solutions than could be obtained through other means. Why Bother? Organizations have a difficult time engaging with their communities to strengthen their relationship and be citizen/crowd focused. Internal or external, the community has ideas that can be harnessed that come from diverse backgrounds, experiences and education. 7

16. Participation Happens – Civic or Brands 5

17. Who is your crowd? The crowd you know The crowd you don’t know Social Media Makes the Connection 8

18. Who is your crowd? CITY Engagement Targets 6

19. Where Innovation / Crowdsourcing Fits 8

20. Two Sides of Crowdsourcing Citizen Engagement Community / Civic / National Market Engagement Customers / Prospects / Partners 3

22. Wiki’s

23. User Groups

24. Podcasts

25. Blogs

26. User Voice

27. Epinions

28. Cnet

29. Reviewsarena

30. Buzzillions

31. Tribe SmartWhy not tap into the conversations that are already happening? Get the crowd working for you. 8

33. Citizen Engagement 2

34. I have a challenge 18 Land use determination – who drives the agenda and the conversation? Two approaches Opportunity driven Innovation driven The difference lies in where the ideas come from From the user or the customer From the supplier

35. I have a challenge 19 Opportunity Driven (supplier) Innovation Driven (customer)

37. Blogs

38. Square Mile Blogger

39. Londoniscool

40. London Underground Tube Diary

41. Dave Hill’s Politics Blog

42. London Standard

43. Telegraph Blog

44. Podcasts

45. Dial-Eye-Lama

46. Editorial Intelligence

47. Make no mistake – your citizens want to be involved intransforming the City of today to City 2.0.

48. Where is the engagement? Where is the innovation happening?Driven bySocial Media Platforms 4

50. Crowd is empowered to spark the innovation that will result in an improved approach to governance

51. Move away from ‘Vending Machine Government’

52. Responsibility is shared between citizens and staff20

53. NYC Example NYC Citizen Engagement Program 12

55. Referrals = 64% from Twitter

56. Cost = 500 ice cream cones ($1,000)

57. HumphrySlocombe’s Crowd= 320,000 twitter followers and Facebook Friends13

58. Market Engagement 2

59. What is Social Product Management? The opening up of innovation to internal and external input for the development of products in various stages of the product development lifecycle. Crowdsourcing can be part of an open innovation or social product management strategy. 5

60. Product Management Lifecycle Capture new customers with options & features they are looking for. Crowdsource Option: features & functionality Crowdsource Testing – early adopters reward Socializing requirements and prioritization gathering improves decision making 6

61. How Product Development Used to Happen 9

62. Social Product Development/Open Innovation 10

63. Build a Social Product Strategy Reach customers & prospects where they live – join in the conversations that are happening already Capitalize on valuable customer and prospect insight Develop a culture of collaboration Implement the right social technology to get the job done Communicate results and intentions and be open as possible Let conversations happen in the open Be crowd friendly on an ongoing basis 22

64. Sources of Innovation Does participation require a reward? Do people contribute for the good of the brands they like? How do you democratize the input? 11

65. Innovation: Crowdsourcing vs The Survey 9

66. Product Development - Branded IdeaStorm was created to give a direct voice to Dell’s customers and an avenue to have online “brainstorm” sessions to allow them to share ideas and collaborate with one another and Dell. Their goal through IdeaStorm is to hear what new products or services you’d like to see Dell develop. In almost three years, IdeaStorm has crossed the 10,000 idea mark and implemented nearly 400 ideas! 14

67. Product Development - Inventions Quirky is an all in one product development shop for inventors. 15

68. Conference Agenda Ignite uses crowdsourcing for the source and crowd directed agenda at an upcoming event. 16

69. Where does trust sit? According to Forrester Research (2010), 71% of people say they trust the opinions of family, friends and colleagues as a source of information on products and services. Their crowd or tribe. 7

70. It all starts with a Question or Problem 17 Needs to be: Clear and compelling Not leading Allow for open innovation Encourage participation Allow for outliers to feel comfortable

71. The Appeal Crowdsourcing surfaces new perspectives Invites participation from nontraditional sources Infuses real energy into the process of generating ideas and content Empowers people when they feel their voice is being heard Technology can enable participation by disenfranchised (ie. PCs in libraries/shelters with citizen engagement campaigns) Builds engagement and relationships with new audiences 10

73. Reduced risk due to early customer input

74. Increased customer lifecycle value

75. Broader source of innovation

76. Strengthened brand through participation

77. Organizations can’t have all the brightest people on staff

78. Ideas don’t have to be discovered by internal R&D teams to be capitalized upon

80. Needed trust not easily come by in some organizations

81. Requires community management

82. Suffers if crowd is too narrow

83. Disruptive to traditional timelines for product roll outs

84. First attempt is risky until you understand your crowd

85. Need to know your target audience17

87. Narrow crowds product narrow results

88. No follow-through causes creditability hit

89. If you say you are generating solutions for X, communicate what happened and why

90. Broad ideation campaign descriptions will result in less focused results BUT too narrow will restrict creativity

91. Dismissing ideas that seem far fetched

92. Ideation often requires refinement – understanding what your crowd is saying by ‘x’11

93. What is Crowdfunding? Crowdfunding(sometimes called crowd financing, crowd sourced capital, or street performer protocol) describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the Internet, to support efforts initiated by other people or organizations. Crowdfundingoccurs for any variety of purposes, from disaster relief to citizen journalism to artists seeking support from fans, to political campaigns, to funding a startup company or small business[1] or creating free software. 21

95. Percentage of profits

96. Rewards (points or the CD / Movie)

97. Tax receipt11

99. Kickstarter

100. IndieGoGo

101. Start-ups

102. Peerbackers

103. GrowVC

104. Crowdforce

105. Ceedme

106. RocketHub

107. Fundedbyme

108. Charities

109. Fundchange

110. Crowdrise

111. Lending – Charities

112. Kiva11

113. Example - Kickstarter 11

114. Example - Fundchange 11

115. Examples: Profunder (US only) Funding source for entrepreneurs Revenue Share Debt Equity 11

116. The Appeal Uses social media to get the word out Taps into your crowd and your crowd’s crowd 10

118. It’s social – the crowd won’t promote projects that aren’t shareable

119. Success comes to those that actively build a crowd

120. A challenge for organizations new to social media

121. It’s the free market at work

122. It’s the free market at work

123. Build stickiness to the project

124. Need to pay attention to write-up to inspire funders12

126. Because your efforts are only as good as the crowd you are able to mobilize to your cause, it makes sense that your organization strategically manages and promotes its brand online.

127. Make sure your target audience is online and will give online

128. If you opt to post your projects on established crowdfundingsites, do your homework – be careful of the company you keep. 13

129. How an Engagement Platform Works 22

130. A Platform Could Help 2

132. Able to run multiple campaigns at once

133. Can run Crowdsourcing and Crowdfunding Campaigns

134. Build stickiness and community around those that engage (sign-in and see past votes, comments, ideas)

135. Hosted solution (in Canada)

136. Able to be implemented on existing website or set-up in new, destination site

137. Social Media connected

138. One of few sub $1000/month solutions21

139. How Does Ideavibes Compare? Enterprise Collaboration or Idea Management Large – multi-functioning platforms for Idea Management Integrated into change management and process improvement lifecycles Chaordix, Bright Idea, etc. Middle-tier Focused Crowdsourcing Apps Purpose-built customizable apps focused on crowdsourcing Narrow or wide focus Multiple crowdsourcing and crowdfundingcampaigns Ideavibes, Spigit Note – Ideavibes is only white label crowdfunding platform available Ad-hoc website or Social Media widgets Developed by web teams with basic functionality Functionality as opposed to business process driven 24

140. Thank you Paul Dombowsky | 613.878.1681 | paul@ideavibes.com www.ideavibes.com

141. Grow VCEveryone Funding Startups June 1, 2011

142. Vision The next Silicon Valley is not a location, it is a platform and community on the Internet

143. Mission Provide the platform, service tool kit and partner network for the Virtual Silicon Valley

144. Investment models www.growvc.com 56 1. Community Fund 2. Private Investment 3. Work Investment Startup selects the funding target Members make micro-investments ($20, $50 or $100) The funding target is divided into 10 parts; startups get money always when a 1/10 is full Standard GrowVC investment agreement GrowVC manages the investment Startup selects the funding target Members make investment proposals Startup can accept or reject Local law firm makes the investment agreement based on standard Term Sheet The investor manages the investment Startup makes an offer: competence, targets (hours/achievements), ownership  model to calculate compensation An expert makes a proposal Startup can accept or reject the proposal Standard work investment agreement Startup manages work and the expert the investment

145. WE HAVE A DREAM: more equal opportunities, where entrepreneurs and ordinary people unite to accelerate innovation

146. How to democratize startupinvestments: examples A company like Facebook A company collects totally $20M and achieves $10B valuation If the company has 20 equal investors, each of them invested $1M and gets $500M in the exit If the company has 100,000 investors, each of them invested $200 and gets $100,000 in the exit A more typical startup A company collects totally $3M and achieves $100M valuation If the company has 3 equal investors, each of them invested $1M and gets $33M in the exit If the company has 10,000 investors, each of them invested $300 and gets $10,000 in the exit www.growvc.com 58 Which model has greater influence on people, business and economy

147. global transparent open collaborative efficient

148. 1. P2P and Crowd-funding via Community Fund investments

149. 2. Match-making and negotiation toolsfor Private investments

150. 3. Reward professionals Work investment scheme

151. Browse investments when you have time www.growvc.com 63

153. Co-investors have automated model with veto right

154. Direct investments

155. Community micro-investments

156. Support for investment process and materialsStart-upXXX Community FundMicro-investments Start-upYYY Private investments Start-upZZZ Co-investors Investment process:Managed by community

157. www.growvc.com 65 Initial growth: customer adoption The first full service was launched on February 15, 2010 Statistics on April15, 2011: Registered users: 8,256 Startups, total: 1,986 Startups, open funding round: 98 Total available capital: USD 16,668,175 Total requested capital: USD 20,021,502 Average monthly growth: over 400 new members a month

158. First local services:India and China www.growvc.com 66 Top level local local teams: including VC and finance professionals,serial-entrepreneurs. Localized for the local needs and ecosystem.

159. Tony DhillonHead of European Operationstony@growvc.comTel (UK): +44 7961 848 586Skype: tony.dhillon10 - Twitter:@tdhillon10 www.growvc.com Twitter: @growvc