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Penny Nagle & Ginny Buckley
CultureCrowd is…
•  A consultancy that works with producers to create successful Equity
Crowdfunding campaigns

•  Penny Nagle, Ginny Buckley & Conor Roche - active in London & Hong
Kong

•  Free to download AHRC/Clore funded Research Paper published
August 2013 www.culturecrowd.co.uk
Reward Crowdfunding
vs Equity
Crowdfunding (ECF)
Reward	
  
	
  	
  
How	
  old?	
  	
  
4	
  years	
  
£	
  
Donate	
  from	
  £1	
  
Receive?	
  	
  
Perk	
  
Producer	
  Ownership?	
  	
  100%	
  

ECF	
  

1	
  year	
  
Invest	
  from	
  	
  £10	
  
ROI	
  +	
  Perk	
  =	
  Hybrid	
  
Reduces	
  	
  

Suitability	
  	
  

Small	
  scale,	
  not	
  for	
  profit,	
  amateur	
   Large	
  scale,	
  professional	
  

Pla>orm	
  fees	
  

5%	
  of	
  Value	
  Investment	
  

Main	
  Pla>orms	
  	
  

Kickstarter,	
  Peoplefund.it,	
  Indiegogo	
  Seedrs,	
  Crowdcube	
  

Cultural	
  Projects	
  

Yes	
  lots	
  

Av	
  5-­‐7.5%	
  of	
  Value	
  Investment	
  	
  

4-­‐5	
  total	
  –	
  no	
  complete	
  cycles	
  yet	
  
CultureCrowd loves
ECF because…

•  There’s nothing new under the sun…Marillion, David Bowie, Age of
Stupid
•  But online ECF radically changes the model - invest from as little as £10 
•  UK has an advantage – World’s 1st FCA regulated equity crowdfunding
arena 
•  Connects audience and investors 
•  Tech platforms more transparent, accountable & efficient
But… 
•  Investment Readiness + Maintaining Control


•  Unsuitable for amateur entrepreneur
•  Experienced Arts Investors Required?

•  Cost of compliance and danger of litigation
How much does it
cost to crowdfund?

•  Producers success fees
• 
• 
• 
• 

• 
• 
• 

Financial transaction fees
Cost of making & delivering donor ‘rewards’ 
Management fees to 3rd parties, PRs 
Tax liabilities
ECF legal fees
ECF Due Diligence
ECF Intermediary services
Case Study : Reward CF

Veronica Mars 2013
• 
• 
• 
• 
• 
• 

US based Kickstarter campaign, i.e Reward only 
13 Mar – 12 April 2013
Pitched for US$2M, raised 2.5M in first 48 hours of campaign
Eventually raised $5,702,153 from 91,585 backers
To date there are 20, 682 comments on the Kickstarter campaign page
Quickly followed by pitches from Zach Braff & Spike Lee and
accompanied by a backlash
ECF Case Study

Happy Days 2013
Commercial UK Theatre tour Oct 13
Raising investment £250K on ECF platform Seedrs (UK)
Invest for as little as £10 on industry standard terms
Challenges of sector specific investment on non-specialist platform
with atypical investors
•  The online dragons den	

• 
• 
• 
• 
ECF Case Study

Wind in the Willows 
•  October 2013 dedicated website www.investinwillows.com
•  £650K offered of total £6.5M budget, investment offered at fixed
levels £1K, £2.5K & £5K
•  Costs of promotion, legal, due diligence, FCA compliance, website &
design
ECF Case Study

Train Fever
•  Video Game - Train/Railroad (Management) Simulator (on
Gambitious.com)
•  50% share of total sales revenue offered 
•  Raised €250.000 from 651 investors from various countries
•  Ranging from €20 - €20.000 investments
•  Investors are: 
•  Fans (train-enthusiasts; lively suggestions and feedback discussions
(still) going on on the platform)
•  Investors who see the quality and enthusiasm of the crowd
•  2nd tier network of development team
•  Gambitious’ publishing branch is also publishing the title (exp. release
May 2014)
Characteristics of successful
campaigns

 Monetise an existing following - a great brand, social media profile or
• 
other compelling story
•  Combine on and offline investors – match fund
•  Be all over your campaign all the time, Equity investors are as
motivated by the performance of the entrepreneur/ producer as they
are by the product
•  Post campaign strategy to manage investors afterwards
Could ECF be part of the solution?
“There will always be a large number of micro-businesses in the sector.
From a purely creative point of view, small is both beautiful and
productive. Creative talent flourishes best in relatively small and highly
flexible units. However creative excellence does not guarantee
commercial success. In a competitive global market small, weak, projectbased business units are vulnerable to the effects of under-capitalisation,
loss of clients, adverse currency fluctuations and the withdrawal of
inward investment.”


Extract from Ingenious Media paper submitted to Hse of Commons Select Committee 2008
ECF: What If? Next 5
Years ….
•  Niche platforms? Gambitious, investinzombie.com, Arts specific?
•  Professional Intermediaries & other CF service businesses
•  Social Finance instruments adapted for use by arts/ creative
industries
•  Mini-markets - Symbid certificate trading
•  Big Data – more analysis & audiences participating directly in culture
they want
•  Netflix
Thankyou – Feedback 

@culturecrowd




penny@culturecrowd.co.uk

virginia@culturecrowd.co.uk

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REMIX SUMMIT-Virginia Buckley, Co-Founder, Culture Crowd

  • 1. Penny Nagle & Ginny Buckley
  • 2. CultureCrowd is… •  A consultancy that works with producers to create successful Equity Crowdfunding campaigns •  Penny Nagle, Ginny Buckley & Conor Roche - active in London & Hong Kong •  Free to download AHRC/Clore funded Research Paper published August 2013 www.culturecrowd.co.uk
  • 3. Reward Crowdfunding vs Equity Crowdfunding (ECF) Reward       How  old?     4  years   £   Donate  from  £1   Receive?     Perk   Producer  Ownership?    100%   ECF   1  year   Invest  from    £10   ROI  +  Perk  =  Hybrid   Reduces     Suitability     Small  scale,  not  for  profit,  amateur   Large  scale,  professional   Pla>orm  fees   5%  of  Value  Investment   Main  Pla>orms     Kickstarter,  Peoplefund.it,  Indiegogo  Seedrs,  Crowdcube   Cultural  Projects   Yes  lots   Av  5-­‐7.5%  of  Value  Investment     4-­‐5  total  –  no  complete  cycles  yet  
  • 4. CultureCrowd loves ECF because… •  There’s nothing new under the sun…Marillion, David Bowie, Age of Stupid •  But online ECF radically changes the model - invest from as little as £10 •  UK has an advantage – World’s 1st FCA regulated equity crowdfunding arena •  Connects audience and investors •  Tech platforms more transparent, accountable & efficient
  • 5. But… •  Investment Readiness + Maintaining Control •  Unsuitable for amateur entrepreneur •  Experienced Arts Investors Required? •  Cost of compliance and danger of litigation
  • 6. How much does it cost to crowdfund? •  Producers success fees •  •  •  •  •  •  •  Financial transaction fees Cost of making & delivering donor ‘rewards’ Management fees to 3rd parties, PRs Tax liabilities ECF legal fees ECF Due Diligence ECF Intermediary services
  • 7. Case Study : Reward CF Veronica Mars 2013 •  •  •  •  •  •  US based Kickstarter campaign, i.e Reward only 13 Mar – 12 April 2013 Pitched for US$2M, raised 2.5M in first 48 hours of campaign Eventually raised $5,702,153 from 91,585 backers To date there are 20, 682 comments on the Kickstarter campaign page Quickly followed by pitches from Zach Braff & Spike Lee and accompanied by a backlash
  • 8. ECF Case Study Happy Days 2013 Commercial UK Theatre tour Oct 13 Raising investment £250K on ECF platform Seedrs (UK) Invest for as little as £10 on industry standard terms Challenges of sector specific investment on non-specialist platform with atypical investors •  The online dragons den •  •  •  • 
  • 9. ECF Case Study Wind in the Willows •  October 2013 dedicated website www.investinwillows.com •  £650K offered of total £6.5M budget, investment offered at fixed levels £1K, £2.5K & £5K •  Costs of promotion, legal, due diligence, FCA compliance, website & design
  • 10. ECF Case Study Train Fever •  Video Game - Train/Railroad (Management) Simulator (on Gambitious.com) •  50% share of total sales revenue offered •  Raised €250.000 from 651 investors from various countries •  Ranging from €20 - €20.000 investments •  Investors are: •  Fans (train-enthusiasts; lively suggestions and feedback discussions (still) going on on the platform) •  Investors who see the quality and enthusiasm of the crowd •  2nd tier network of development team •  Gambitious’ publishing branch is also publishing the title (exp. release May 2014)
  • 11. Characteristics of successful campaigns Monetise an existing following - a great brand, social media profile or •  other compelling story •  Combine on and offline investors – match fund •  Be all over your campaign all the time, Equity investors are as motivated by the performance of the entrepreneur/ producer as they are by the product •  Post campaign strategy to manage investors afterwards
  • 12. Could ECF be part of the solution? “There will always be a large number of micro-businesses in the sector. From a purely creative point of view, small is both beautiful and productive. Creative talent flourishes best in relatively small and highly flexible units. However creative excellence does not guarantee commercial success. In a competitive global market small, weak, projectbased business units are vulnerable to the effects of under-capitalisation, loss of clients, adverse currency fluctuations and the withdrawal of inward investment.” Extract from Ingenious Media paper submitted to Hse of Commons Select Committee 2008
  • 13. ECF: What If? Next 5 Years …. •  Niche platforms? Gambitious, investinzombie.com, Arts specific? •  Professional Intermediaries & other CF service businesses •  Social Finance instruments adapted for use by arts/ creative industries •  Mini-markets - Symbid certificate trading •  Big Data – more analysis & audiences participating directly in culture they want •  Netflix
  • 14. Thankyou – Feedback @culturecrowd penny@culturecrowd.co.uk virginia@culturecrowd.co.uk