1. AAnn IInnttrroodduuccttiioonn ttoo tthhee
PPrraaccttiiccee ooff CCrroowwddffuunnddiinngg
University of Glasgow 20th November 2014
TTiimm WWrriigghhtt

2. • What is crowdfunding?
• Benefits and Risks
• How to do it – the TAMP Process
AAggeennddaa

3. CCoonnssuullttaannccyy
•CCrroowwddssoouurrcciinngg
•CCrroowwddffuunnddiinngg
•IInnnnoovvaattiioonn
•KKnnoowwlleeddggee MMaannaaggeemmeenntt

4. CCrroowwddffuunnddiinngg iiss aa mmeetthhoodd ooff rraaiissiinngg
mmoonneeyy ffrroomm aa ddiissttrriibbuutteedd ggrroouupp ooff
ffuunnddeerrss ((tthhee ccrroowwdd)) wwhhoo pprroovviiddee aa
llaarrggee nnuummbbeerr ooff ssmmaallll ssuummss ffoorrmmiinngg aa
ssiiggnniiffiiccaanntt ttoottaall wwhheenn aaggggrreeggaatteedd
ttooggeetthheerr..

5. $5 Billion 2013
$2.7 Billion 2012
UK is a world leader
Constant innovation in sector
Individual projects raised up to $50 Million

6. Empowering
It is hard work
Grown up with Social Media
Platforms are the facilitators
Founded in the “Long Tail” distribution model
Government engagement

7. Technological
Social and Collaborative tools, Platforms
Societal
EEmmppoowweerrmmeenntt,, eeccoommmmeerrccee,, ““ggrroowwnn uupp ddiiggiittaall”” ggeenneerraattiioonn
Economic
CCaappiittaall CCoonnssttrraaiinntt,, iinnvveessttmmeenntt ooppppoorrttuunniittyy
WWhhyy iiss iitt ggrroowwiinngg??

8. GGIIFFTT PPEERRKK LLOOAANN EEQQUUIITTYY
Four Models of Crowdfunding

9. Funds collected are gifts or
donations with no tangible
return to the provider.
Four Models of Crowdfunding
GGIIFFTT PPEERRKK LLOOAANN EEQQUUIITTYY

10. Just Giving
https://www.kickstarter.com/
Yimby
https://www.indiegogo.com/
Razzoo
http://www.razoo.com
PPllaattffoorrmmss –– DDoonnaattiioonn

11. “Rewards” or “perks” of
different value are offered to
investors to purchase.
Four Models of Crowdfunding
GGIIFFTT PPEERRKK LLOOAANN EEQQUUIITTYY

12. Kickstarter
https://www.kickstarter.com/
Indiegogo
https://www.indiegogo.com/
Crowdfunder
http://www.crowdfunder.co.uk/
BloomVC
http://bloomvc.com/
PPllaattffoorrmmss –– PPeerrkk oorr RReewwaarrdd

13. A loan is constructed from
many small loans collected
from the crowd. Many are
interest bearing.
Four Models of Crowdfunding
GGIIFFTT PPEERRKK LLOOAANN EEQQUUIITTYY

14. Funding Circle
https://www.fundingcircle.com/
Rebuilding Society
https://www.rebuildingsociety.com/
Lending Crowd
https://www.lendingcrowd.com/
PPllaattffoorrmmss -- LLeennddiinngg

15. Shares are sold in small
parcels to a large group of
investors.
Four Models of Crowdfunding
GGIIFFTT PPEERRKK LLOOAANN EEQQUUIITTYY

16. Crowdcube
http://www.crowdcube.com/
Seedrs
https://www.seedrs.com/
Squareknot
https://www.squareknot.co.uk/
ShareIn
http://www.sharein.com
PPllaattffoorrmmss -- EEqquuiittyy

17. Keep it all
You get to keep whatever you raise
All or nothing
You get to keep anything only if you reach your target
DIY
You run your campaign “of platform”
Hybrid models
A mix of funding
AAddddiittiioonnaall VVaarriiaattiioonnss

18. •Set targets
•Select platform
•Prepare
•Outreach
•Updating
•Promotion
•Crowd invests
•Contact their crowd
•Target met
•Rewards paid
•Money collected
Idea to crowdfund

19. Crowdfunding working in all sectors

20. Advocacy
Expertise
Asset Development
Inward investment
Validation

21. Average Success Rates
30% 75wwiitthh%
ccooaacchhiinngg

23. BBeetttteerr OOuuttccoommeess
How Does Crowdfunding Impact Job Creation, Company Revenue and Professional Investor Interest? CCA 2014

24. BBeetttteerr OOuuttccoommeess
Non Financial Support – Equity CF
Understanding Alternative Finance - Nesta, University Cambridge 2014

25. BBeetttteerr OOuuttccoommeess
Non Financial Support – Reward CF
Understanding Alternative Finance - Nesta, University Cambridge 2014

27. BBeetttteerr OOuuttccoommeess
24%
Quarterly increase
revenue post
crowdfunding
Increased revenue of equity 351%
crowdfunded companies
Value of every hour
invested in a successful
campaign $813
How Does Crowdfunding Impact Job Creation, Company Revenue and Professional Investor Interest? CCA 2014

28. BBeetttteerr OOuuttccoommeess
Within three months of a crowdfunding campaign…….
28%
of companies had closed
an angel investor or
venture capital round.
43%
were in discussions
with institutional
investors.
How Does Crowdfunding Impact Job Creation, Company Revenue and Professional Investor Interest? CCA 2014

29. EEnndduurriinngg AAsssseett
Crowdassets are the new source of innovation and
economic growth.
Open for Business — Moving from ‘Knowing’ to ‘Doing’! - Wright & Marom - EC Open Innovation Handbook 2014
Crowdfunding provides a perfect
entry to the crowd empowered world!

30. CCrroowwddaasssseett FFrraammeewwoorrkk
Crowdsourcing
Viral Marketing
Collaborative Economy
Maker Community
Wiki Building
Open Source
Turking
Deep Skills
Open for Business — Moving from ‘Knowing’ to ‘Doing’! - Wright & Marom - EC Open Innovation Handbook 2014

31. HHooww ttoo DDoo IItt??

32. The Purpose of TAMP is to:
Establish if crowdfunding is right for your
project.
Show how ready you are to crowdfund.
Analyse which form of crowdfunding is best
for you.
Build a plan that will help you to run a
successful crowdfunding campaign around.
IInnttrroodduucciinngg tthhee TTAAMMPP PPrroocceessss

33. TT Targets
AA Audit
MM Method
PP Plan/Prepare
TThhee TTAAMMPP PPrroocceessss

34. What
When
Why
Who
TTaarrggeettss

35. How much do you want and need to raise?
? How did you arrive at the numbers
? Is it enough
? Is this a single funding round
? Do you want stretch targets
? Is it a costed amount in a business case
? Are you using sensible valuation schemes
WWhhaatt ddoo yyoouu nneeeedd??

36. ? How hard are the timings
? Are they fixed, moveable, long or
short term
WWhheenn ddoo yyoouu nneeeedd iitt??

37. Think strategically
Saying you want to fund a film is simply not enough!
? How does this fit with the wider plans for you or your
organization
? Are you looking to take a product to market, expand, or
even radically change your business model
WWhhyy ddoo yyoouu nneeeedd iitt??

38. Followers and Fans
Influencers
Communicators
WWhhoo aarree yyoouu ggooiinngg ttoo ttaarrggeett??

39. Assets
Skills
Resources
Tools
AAuuddiitt

40. Items, artefacts, objects and components
that you or your organisation holds.
Social and Relationship capital
IP
Pictures
Mail lists
Video
Newsletters
AAsssseettss

41. Technical skills
Web builder, reward maker, fabrication.
Communication skills
Copy writer, designer, video editor.
SSkkiillllss

42. Time
Money
People
Facilities
RReessoouurrcceess

43. CRM
A server
Mail list tool
Analytical tools
Manufacturing tools
TToooollss

44. ?? ?? ??
Reward
Equity
Lending
Donation
MMeetthhoodd
All or nothing
Keep it all
Duration
Crowdcube
Kickstarter
Crowdfunder
Funding Circle
DIY

45. Resources
What do you need?
Responsibilities
Crowd Who will do what?
Fans, Influencers, Communicators
Schedule
When will things happen?
Publishing Plan
Channels, Content, Timing, Monitoring, Responding
PPrreeppaarree && PPllaann

46. Before
33 PPllaannnniinngg PPhhaasseess
After
During

47. Followers
Influencers
Communicators
FFiinnddiinngg yyoouurr ccrroowwdd

48. Run Your Own Campaign
Preparation, Preparation, Preparation
Get the Messaging Right
Get off to a Good Start
Monitor, Respond, Update
Shorter is Generally Better
Video, Video, Video
Components ooff aa GGoooodd CCaammppaaiiggnn

49. QQuueessttiioonnss??
TTiimm WWrriigghhtt
tim@twintangibles.co.uk
07717 814 595
@twintangibles