Alberto Giusti - Crowdchain: The New Species of Fundraising

1. European Crowdfunding Center
Crowdchain: The new species
of Fundraising
Presented by Alberto Giusti
24-Lug-2018

2. @albgiusti - http://euro-cc.eu/
info@euro-cc.eu

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What’s not Crowdfunding

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The Crowdfunding process

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Definition
Crowdfunding (a form of crowdsourcing) is the practice of
funding a project or venture by raising monetary contributions
from a large number of people, today often performed via
internet-mediated registries, but the concept can also be
executed through mail-order subscriptions, benefit events, and
other methods.
Crowdfunding is a form of alternative finance, which has
emerged outside of the traditional financial system.

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Types of Crowdfunding

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Crowdfunding Geography

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Crowdfunding Campaign benefits
• The average company invested 135 hours of staff time in their
campaign, with an average of 45 days engagement.
• The average crowdfunding campaign returns $813 dollars for every
hour invested.
• The average company spent just over $2,100 on the campaign itself
(video, marketing, social media marketing, etc).

9. MARKET-TEST
A zero risk / cost driver for companies
that want to launch products on the
market involving the network and new
stakeholders in the process of product
validation

10. SCALE-UP
A crowdfunding campaign allows the
company that supports funding to
have access to projects that can
become services or products of the
Company itself or collaboration with
the R & D department

11. Through crowdfunding, products
that can be resold in bundle with
other commercial offers are pre-
purchased at an advantageous
price
PRE-ORDER

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Immediate ROI in Crowdfunding
• The average increase in quarterly revenue across all types of
crowdfunding was $12,675. This represents an average
increase of 24% quarter over quarter.
• Equity-based crowdfunding resulted in a quarterly increase of
35%—not including funds raised via the equity round.

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Crowdfunding: Impacts on Job
• 87% of firms either had or intended to hire new employees as a
direct result of having raised equity or debt financing via
crowdfunding.
• Average of 2.5 new employees.
• The larger the firm size, the more likely the firm would reinvest
crowdfunding proceedings into new employee hires.

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Professional Investors Engage with
Crowdfunding

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Crowdfunding is more than money

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It’s all about Trust
• People will give if they like the product, like you (or the company)
and believe in the idea behind it. Be transparent and build trust!
• Getting positive press/media can boost your credibility and draw
attention to what you’ve already accomplished.

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The Constellation of Trust

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Crowdfunding as start-up “easy” money

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Crowdfunding is becoming the new angel
investor…
• The average fundraising goal for
business startups is over
$500,000 across all industries
• Energy & Utilities and Financial
Services & Real Estate have the
highest average fundraising
goals, while Consumer Products
and Services have the lowest

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… for 25% of equity on average
On average, business
startups gave up
nearly a 1/4th of
their equity to crowd
investors

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In some countries better than others

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Netherlands Docet

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Opportunity - Royalty Based

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The Future - Crowd Chain
APPLICATION EVALUATION
AND PROJECT
PREPARATION
REWARD
BASE
CROWDFUNDI
NG/
MARKET
TEST/
PUBLICITY

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Business Model - Crowd Chain

26. Numbers

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Features
Model: All or nothing
Countries: 24
Process online: Approval then launch
Model: All or nothing+flexible+equity
Countries: Worldwide
Process online: Always welcomed
Market place

29. Statistics Kickstarter

30. Statistics Indiegogo

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Kickstarter: Statistics

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Indiegogo: Statistics

33. How to plan a
Crowdfunding Campaign

34. INSPIRE the audience with your VISION
ILLUSTRATE your VISION with CLARITY
BUILD CONFIDENCE that you can realize your
Vision
Vision, Clarity e Confidence

35. Know What You’re Building
You Must Open with a BANG
•You need to BUILD an audience BEFORE launching
•Go live where they live - they need to know you
•Share with them your vision beforehand
•Get them psyched to be there on day one
•You need to MARKET your Crowdfunding
•Use Social Media Missions to spread the word
•Network with other Crowdfunders, Press and Platforms

36. Research Similar Crowdfunding Projects
• What funding ranges worked?
• What reward prices worked?
• Graph the revenue per price point
• What reward items / content worked?
• What social missions worked?
• What social rewards worked?
Campaign Planning

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Research Similar Crowdfunding Projects

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What’s about time in other projects?

39. Understanding Cost Of Goods
•Digital Distribution
•PC - Costs of fullfilment
• Mobile - Watch out for iOS costs
•Design and Sourcing
•Everything you do takes time away from your
Project
•COG Challenges
•Low volume manufacturing = high unit costs
•More reward items = lower production per item
Cost Analysis

40. Vision, Clarity, & Confidence
•KISS Keep It Simple (or you're the one that is) Stupid
•Hierarchy of Information
• Video
• Graphics
• Text
• FAQ
•Video should be Professional but PERSONAL
• Don’t overproduce it.
The Pitch

41. A Successful Campaign

42. You Must Open with a BANG
• You need to BUILD an audience BEFORE
launching
• Go live where they live - they need to know
you
• Share with them your vision beforehand
• Get them psyched to be there on day one
• You need to MARKET your Crowdfunding
• Use Social Media Missions to spread the
word
• Network with other Crowdfunders, Press
and Platforms
The First 48 Hours

43. Crowdfunding. Solo soldi o nuovi Business Model
You need to BUILD an audience BEFORE launching

44. Keep the Energy UP
•Connect with the audience
•Answer questions – promptly
•Say thank you – personally
•Participate in the dialog – constantly
•Schedule exciting new updates – Regularly
•Create activities to keep the audience engaged
The 26 Days of Hell

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Create activities to keep the audience engaged

46. Increase the Energy
•Kickstarter’s 48 Hour Email
•Hold something EXCITING to be revealed
•Now it's a SPRINT - go to FULL COURT
PRESS
The Last 48 Hours

47. Enterprise Crowdfunding

48. The Enterprise Crowdfunding allows
to make known to the same
companies the opinion of the public
about a particular product before it is
put on the market

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Enterprise Crowdfunding
● Get in touch with creative people,
enthusiasts of innovative products
● Opinion of the public about a
particular product before it is put on
the market.
● Launch of a new product without
exposing itself to high financial risks

50. The benefits of this approach are first and foremost in
terms of know-how generated, secondarily in economic
/ monetary terms, relating to the reduction in costs of
market research and focus groups, production costs
and those of a product's roll out.
Potential FOR your Business

51. Takeaway.Crowdfunding change business models:
fans&investors become the marketing team,
crowdsourced engagement, new ownership models

52. Thanks for Watching
What’s Next?