Crowdfunding for Women: The Capital Raising Equalizer is a presentation given by Reality Crowd TV Media Corporation to the University of Hartford Entrepreneurial Center for Women on 10/30/14.
Patch of LandCrowdfunding, Digital Media, & Network Effects. Expert in Fundraising & User Acquisition. Matching Investors to Startups à Patch of Land
Crowdfunding for Women: The Capital Raising Equalizer
1. Crowdfunding for Women:
Capital Raising Equalizer
By Jessica Sun, CEO RCTV
Manolis Sfinarolakis, Founder RCTV
2. Purpose
Gain a better understanding of
what crowdfunding is
Introduce you to the 9 stages of
crowdfunding
Understand the difference
between Rewards, equity, and
debt based crowdfunding
Motivate you to use crowdfunding
to achieve your business goals
Understand how Women led
crowdfunding campaigns have a
high success rate compared to
traditional financing means
3. Ground Rules
Participate
One conversation at a
time
Cell phones off during
class
No laptops
Ask questions
Respect others’
opinions
Respect confidentiality
4. Introduction to Founders
Jessica Sun
➢ CoFounder & CEO, Reality Crowd TV Media Corp.
➢ Brand Management, Marketing, and Brokerage Operations experience
in multiple industries
➢ Educated/consulted multiple crowdfunding campaigns on what
crowdfunding is and the process around it
➢ Attended multiple crowdfunding events to get the mission of our
company out there and further educate people on Crowdfunding
➢ Education experience with the NYC Department of Education. Created
curriculums for both Math and Science Classes
➢ Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S-1
documentation for broker/dealer that raised 1.2 billion during IPO.
➢ BA in Math, Finance, and Economics from Binghamton University
5. Introduction to Founders Continued
Manolis Sfinarolakis
➢ Founder, Reality Crowd TV Media Corp.
➢ Member of Crowdfunding Professional Association (CfPA), Crowdfund
Intermediary Regulatory Advocates (CFIRA), and National
Crowdfunding Association (NLCFA)
➢ Multiple speeches given on the topic of Crowdfunding in states across
the U.S., including Connecticut, New York, Georgia, Denver, Seattle,
Texas, Washington D.C., and Florida
➢ Insurance Industry experience with The Hartford Insurance Group
within the Internal Audit Department.
➢ Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S-1
documentation for broker/dealer that raised 1.2 billion during IPO.
➢ BS in Business Administration, Concentration in Accounting from
University of Connecticut
6. “Crowdfunding is converting social capital into actual
capital through the internet.”
8. The 9 Stages of Crowdfunding
Successful campaigns take at least 3 months of pre-launch
activities before they launch their project (to go
into detail later in the presentation):
Business Planning
Intellectual Property
Social Media
Public Relations
Campaign Strategy
Networking
Team Building
Website Development
Profile & Video
9. Donation Based Crowdfunding
Used mainly by charities, medical emergencies, or
natural disasters.
Top websites used for donation based crowdfunding:
YouCaring.com
DonorsChoose.org
No rewards offered, straight donation.
Must have a compelling story that inspires action.
Highly dependent on social capital and relationships.
Amplified by PR and Social Media execution ahead
of time.
If 501(c)3, tax benefit to the donors.
10. Rewards Based Crowdfunding
Contribution in exchange for a reward. Used by many
different non-profits, businesses, artists, film makers, and
entrepreneurs. The crowdfunding of choice for Startup
companies. Capital raised without giving up equity /
taking on debt!
Top websites used for rewards based crowdfunding:
Kickstarter.com
IndieGoGo.com
Highly dependent on social capital and relationships.
PR is most important, followed by social media.
Video must be top notch to tell a compelling reason why
they should invest in the person’s project, especially if it
is a for profit enterprise.
Must reach 30% of funding within the first week of the
campaign (90% success).
11. Equity Based Crowdfunding
Investment in exchange for equity. Title II, Title III, and
Title IV of the 2012 JOBS act.
Title II allows for the general solicitation of Accredited
Investors for investment in small businesses via the
internet / crowdfunding websites.
Title III will allow for the general solicitation of Un-
Accredited investors for investment in small businesses
via the internet / crowdfunding websites.
Title IV allows for general solicitation of both Accredited
and Un-Accredited investors, however, it is state by state
crowdfunding and takes months to close.
Top websites used for equity based crowdfunding:
Angellist.com
Realtymogul.com
12. Debt Based Crowdfunding
Investment in exchange for bond. Title II, Title III, and
Title IV of the 2012 JOBS act.
Title II allows for the general solicitation of Accredited
Investors for investment in small businesses via the
internet / crowdfunding websites.
Title III will allow for the general solicitation of Un-
Accredited investors for investment in small businesses
via the internet / crowdfunding websites.
Title IV allows for general solicitation of both Accredited
and Un-Accredited investors, however, it is state by state
crowdfunding and takes months to close.
Top websites used for debt based crowdfunding:
Patchofland.com
LendingClub.com
CircleUp.com
14. Successful Women led Crowdfunding
Examples
Case Study: Bia Sports Watch:
https://www.kickstarter.com/projects/956860865/bia-the-
first-gps-sports-watch-for-womenby-women?
ref=nav_search
Case Study: Knix Wear, High Tech Underwear
https://www.indiegogo.com/projects/knix-wear-high-tech-
multi-tasking-underwear
Case Study: OUYA, A new kind of video game
Counsel
https://www.kickstarter.com/projects/ouya/ouya-a-new-kind-
of-video-game-console?ref=nav_search
15. Women and Crowdfunding Statistics
On Kickstarter, where backers make
contributions in exchange for
rewards, women-led companies
account for less than 10% of
technology projects. But roughly
two-thirds of women-led technology
ventures reached their fundraising
goals versus just 30% of technology
ventures with male founders
Women are 13% more likely than
men to meet their Kickstarter goals
Women often succeed in
crowdfunding because other women
activists often support women
campaigns.
Women are 61% more likely than
men to meet their financial targets
on its site, Indiegogo Inc. says
Women account for 44% of
Kickstarter backers
16. Top Crowdfunding Platforms
1. CrowdHelps: CrowdHelps is a Crowdfunding site for Women.
Women from around the World can raise money online for any life
situation
2. Buzzbnk: A UK platform that supports social entrepreneurs and
innovators. “Positive People Backing Bright Ideas.”
3. StartSomeGood: StartSomeGood empowers “social innovators,” and
forwards the trend of social entrepreneurship. It is a relatively new social
site.
4. Crowdrise: Named the “Top 25 Best Global Philanthropist.” Since 2009,
Crowdrise has helped bring together volunteers and philanthropists to
spread the call of service.
5. Kickstarter: A project crowdfunding website that any organization or
individual can use to finance their event or project.
6. Indiegogo: An international crowdfunding site for creative types that can
also be used to raise money for charity and non-profit organizations.
7. Rockethub.com: A crowdfunding platform used by all types of
organizations and individuals ranging from scientists to philanthropists.
8. Pozible.com: An Australia-based website that encourages creative
projects and ideas. This website can also be used for charity purposes.
17. Workshop Activity
Get into groups of 4 (We can get into groups based
on industry).
A. Discuss ways you can utilize crowdfunding to get your
cause to reach your target audience
B. Discus project ideas. What types of campaign can you
use crowdfunding for?
C. What are some obstacles you are facing now? Can
crowdfunding help?
D. What are some ways you tried to get funding? Come
up with ideas how you can utilize crowdfunding to
enhance these ways.
We will then come together and discuss as a group.