Crowdfunding for Today's Entrepreneur

1. Crowdfunding Your Startup: Capital
for Today’s Entrepreneur
Talia Washington
Program Specialist II
Cooperative Extension Program
Community and Economic Development
Prairie View A&M University

2. Overview of Crowdfunding
Self Financing
Credit Cards
Bank Loans
Crowdfunding

3. In the past people borrowed
from family and friends to
start their new business
ventures.
According 68% of the small businesses that
responded to a 2015 survey by Pepperdine
University stated, they financed their
business using money from friends and
family.

4. Overview of Crowdfunding
Startups
Individual Investors

5. Overview of Crowdfunding
“Crowdfunding in some of the ways
gained an impressive momentum in
the past decade to become a viable
funding option for small business
owners” – Fundable.com, Crowdsourcing guide and history

6. 2. You put it on a crowdfunding
site that is best for your product or
service
1. You have an idea
3. You tell your family and friends
4. The crowd pledges cash in exchange
for a reward or the finished product
5. The crowd shares your story 6. You hit your target and startup your
company
How Does it Work?

7. JOBS Act
Jumpstart Our Business ACT (JOBS Act 2012) was
passed by President Obama.
The goal of this ACT is to ease the burden on
entrepreneurs seeking to raise startup capital.

8. Did you know?
There are over 2,000 crowdfunding platforms all over the globe. But
there are four major types of funding categories in which the platforms
all in also known as campaigns fall into.
1.Equity-based
2.Reward-based
3.Donation-based

9. Donation Based
• Used mainly by nonprofits,
charities, medical emergencies
and natural disasters
• No rewards offered
• Straight donations
• Dependent on social media
following, social capital, timing,
relationships

10. Top Donation Base sites
• Generosity.com
• Gofundme.com
• Donorschoose.org

11. Rewards Based
• Contribution in exchange for a
reward
• Most entrepreneurs prefer this
platform vs the equity based
• Capital is raised without giving up
equity
• Dependent of social media,
likeability, profitable project

12. Top Rewards Base sites
• Kickstarter
• Indiegogo
• Fundable
• RocketHub

13. Equity based
• Investment exchange for equity in the
company
• Allows for non investors for
investment in small businesses via the
crowdfunding sites
• Investors generally have to register
with a social media account, and
verify their identity, income and
assets.

14. Top Equity Base sites
• Fundable
• Crowdfunder
• AngelList
• Wefunder

15. Why is this important?

17. Farm startup

18. Farm startup
The Problem
Lack of funding or Access to Capital
Goal is $5,000
50 people at $100 each
Or
500 people at $10 each

19. Top Ag/Food Crowdfunding sites

20. Did it get funded?
Alti Farms

21. Did it get funded?
Livin Farms

22. What makes a campaign successful?
Well Crafted
Story
High Quality
Photos and
Logo
Rewards
Email and
Social Media
Strategy
High Quality
Video or
Demo

23. Thank You!!
Any other questions please contact me
Talia Washington
Prairie View A&M University
Cooperative Extension Program
936-261-5119 office
tbwashington@pvamu.edu

24. www.sba.gov – crowdfunding
www.time.com/money/4secretstocrowdfundingsucess
www.smashingmagazine.com – article, So, you want to
Crowdfund your startup App
Don Bauf, Kickstarter, p. 87
www.fundable.com – Crowdfunding History
www.Indiegogo.com – Explore Projects
Resources