2. 10+ companies
$250M Funding 4 Exits (great !)
$3B Revenues 4 Failures (awful !)
Lots of lessons. Chaos, Pain and Joy.
EIR, Venture Partner
5 Companies 9 Boards
3,000 Tylenol Caplets. Ego and Brain Atrophy.
Professor of Digital Media & Entrepreneurship
Arizona State University, SJSU, Stanford (Lecturer)
New York Institute of Technology
Knight Center for Digital Media Entrepreneurship
Research in digital media, behavior, entrepreneurship
Advisor/Mentor, Author etc.
ASU – Skysong, Venture Catalyst, RSS etc
Arizona Commerce Authority / Venture ready
Arizona Innovation Challenge
Book: Age of Metapreneurship. Blog/Articles
8. Concept to Product to Growth
accel & incub
9. The Kauffman Index of Entrepreneurial
Activity is a leading indicator of new
business creation in the United States.
In 2012 - The state with the HIGHEST level of
Entrepreneurial Growth was …
10. # 1 in Entrepreneurial Growth
# 46th in Venture Capital $
29. 5 APRIL, 2012 (AND … AUGUST 2012, DECEMBER 2012 …)
Jumpstart Our Business Startup
ACT, Title III (JOBS Act).
30. Equity Crowdfunding - JOBS
• Eliminates ban on general solicitation and general advertising in connection
with private offerings to accredited investors under Regulation D (Rule 506) and to
qualified institutional buyers under Rule 144A.
• Exemption from Securities Act registration “crowdfunding” transactions
(involving access to small amounts of capital through the internet).
• Exemption to allow issuance of up to $50 million of securities in any 12-month
period, up from the current $5 million threshold
• An increase in the number of shareholders a company may have before being
required to register its common stock with the SEC and become a public reporting
company from 500 to 2,000 total shareholders (including up to 500
• Amount each person may invest in offerings of this type, tiered by the person's net
worth or yearly income.
32. SAN FRANCISCO, Dec 6 (Reuters) - Netflix Inc said on Thursday
securities regulators warned they may bring civil action against the
company and its chief executive for violating public disclosure rules with
a Facebook post …
33. • Equity Crowdfunding - not in the USA (yet)
• JOBS act (April 2012) technically enables CF – but has
not yet been approved by SEC.
• No documented fraud in USA or other areas.
• Equity CF is for “high growth companies” seeking
significant funding from experienced investors
• Will dramatically change in 3-5 years (CJ prediction)
WYNTK(what you need to know)
43. Kickstarter (2012)
2.2 million people pledged a total of
(up 221% from 2011)
Backers pledged $606.76 per minute
People in 177 countries backed a project in 2012
(That's 90% of the countriesin the world)
47. Lessons from Ethan Mollick‟s “The Dynamics of Crowdfunding: Determinants of Success and Failure”
48. 3 Why’s: 1. They connect to the greater
purpose of the campaign
2. They connect to a physical
aspect of the campaign like the
3. They connect to the creative
display of the campaign’s
three main reasons why
people unconnected to a
project or business would
What Is Crowdfunding And How Does It Benefit The Economy - Forbes
49. The Real
– For the technology
– For the industry
– For the cause
– For the product
– For the Entrepreneur
– For the region, industry etc
• Every reason BUT R.O.I. …
58. 1. Crowdfunding = New “1st Money” for ventures
($10k - $50k average– but wild exceptions)
2. Equity Crowdfunding is Still Far away
3. Rewards based Model IS Crowdfunding today
4. All or Nothing Crowdfunding – Standard
5. Perks and Rewards: Pre-order Crowdfunding
6. Social Media & Content Intensive
WYNTK(what you need to know)
60. • The iPhone-friendly Pebble watch earned $7.6
million more than its $100,000 goal.
• And the Galileo iPhone platform closed its
Kickstarter campaign at $702,000, far
surpassing its $100,000 goal.
61. • Ouya raised $2 million in one day for a new Android gaming
console (it’s raised more than $5 million to date),
• the Nifty MiniDrive, external memory for Apple MacBooks.
The tiny storage company is more than 2,000% above its
$11,000 goal with 15 days left in the campaign.
62. Successful campaigns took an average
11 days preparing for their launch.
63. Campaigns ran an average 49 days in
2012, as opposed to 60 in 2011.
Successful campaigns fundraised for
64. Crowdfunding Myths & Mistakes
• Myth #1: If You Build It, They Will Come
• Myth #2: Cash is Free
• Making it about you
• Unrealistic Expectations
• Lack of clarity
• No call to action
• Expecting to be found: (No Marketing)
• Ignoring Small Donations/Donors
65. focus on “them” –
not your company
WHO are they?
What motivates them?
Interests, Values …
The new 4 P‟s of
You are pitching to “them”
TELL A STORY !!
WHY is more important than $$
VIDEO(s) & VISUAL(s)
Tell the story in small „chapters‟
VIDEO(s) & VISUAL(s)
And even smaller “sound bites”
Give them a Story they
can tell to others.
$$ Value is a negative driver !
It‟s about THEM
And what is important to “Them”
Make sure it is …
4.It‟s a daily/hourly effort …
It‟s a conversation …
UPDATES, BLOGS, NEWS
Provide Value, and Talking Points
It‟s about … for their network
VALIDATION & EVIDENCE
66. First: Who What Why When …
• The 3 Who’s:
– Who are the donors? (affinity & passion)
– Who is benefits? (the market)
– Who are you?
• The 3 Why’s
– Why would your donors care?
– Why does the market care?
– Why are you the right team to do it?
67. First: Who What Why When …
• What is your project & goal?
– Understandable & Simple
– Compelling & Intriguing
– Repeatable & Memorable
• How and When
– How will you achieve your goal? Realistic?
– When, after funding? When will I get my perks?
75. • $25 perk is the single most claimed perk,
representing nearly 25% of all perks that are
• While the $25 dollar perk is only responsible
for raising 11% of total funds.
76. • $100 perks raise more money than any other
perk price and make up nearly 30% of total
funds. A $100 perk combined with the next
three perk price points: $50, $500, and $1000
makes up about 70% of total money raised by