This project is under the Alternative Investment course lectured by Professor David Lee at SMU. These slides illustrate the definition, history, types and future of crowdfunding. More specifically, slides demonstrate that, innovative technology, blockchain, will be employed in crowdfunding.

1. 2000 600000 55000
• Research Members:
Chen Wanfeng, Huang Yiya, LV Qixun,Pan Fan, Zang Mengyu

2. Introduction
• What is Crowdfunding?
• History of Crowdfunding

3. • What is crowdfunding?

4. Old Method
• What is crowdfunding?
Entrepreneur Loan Officer/VC

5. Crowdfunding
website
New Method
• What is crowdfunding?
Entrepreneur
Social Media
Crowd-investors/
Donors
$ $ $ $ $ $ $

6. • History of Crowdfunding
• crowdfunding was derived from a Boston musician and computer
programmer, launched ArtistShare in 2003.

7. Types of crowdfunding
• Four types of crowdfunding
• Specific focus on equity based crowdfunding

8. • 4 types of crowdfunding
Types Contribution Retribution Representative
platforms
Donation-Based
Crowdfunding
small amounts of money
(typically between $1
and $1,000, sometimes
more)
none
Reward-Based
Crowdfunding
small amounts of money
(typically between $1
and $1,000, sometimes
more)
Reward
(often a product
or service)
Equity-Based
Crowdfunding
larger amounts of
money (at least $1,000
and often a lot more)
a small piece
of equity
Lending-Based
Crowdfunding
(P2P)
make a loan principal
plus interests

9. • 4 types of crowdfunding
Sources: http://if.pedaily.cn/news/201512/20151209161296584_all.shtml

10. • Equity-Based Crowdfunding
• What have happened?
In 2015, in US, SEC approved Title III of JOBS Act--Equity Crowdfunding with Non-
Accrediteds;
In China, Premier Li Keqiang issued a call for “people to start their own businesses
and to make innovations”(“双创”，大众创业，万众创新) ， in which equity-based
crowdfunding would become a very important engine
Block chain technology will get more application, such as equity registration, risk
control, and credit record, along with the development of the equity-based
crowdfunding, to meet the requirements of high efficiency, low cost, reliable.
• What will happen?

11. The Future of Crowdfunding
• Innovative platforms/network, blockchain and
cryptocurrencies
• Other trends of crowdfunding

12. • A platform which takes a widespread approach to crypto equity and
crowdfunding of early projects and business ventures.
• Use Bitcoin’s second-generation protocol
Counterparty and crowdsourcing engagement
• Crowd-incubator-like systems such as Swarm use
technology built on Bitcoin to allow start-ups to raise
money by launching their own cryptocurrencies.
• Powered by Bitcoin 2.0 technology
• Future of next-generation crowdsales
• SwarmCoin
• Advantage: designed to be compliant with the existing
legal framework with respect to security offerings
Get Your Fair Share
(of Project Coins)
Swarm
Sources: http://www.swarmbot.io/s/vOQq/

13. • A decentralized platform that runs smart contracts: applications that run
exactly as programmed without any possibility of downtime, censorship,
fraud or third party interference
• Build and distribute decentralized applications
• Write, deploy and use your own smart contracts
• Ether
• DESIGN AND ISSUE YOUR OWN CRYPTOCURRENCY
• KICKSTART A PROJECT WITH A TRUSTLESS CROWDSALE
• CREATE A DEMOCRATIC AUTONOMOUS ORGANIZATION
• Four component
• Static content publication
• Dynamic messages
• Trustless transactions
• Integrated user interface
• Store the recent state -> Save storage space
• Blockchain protocol with a built-in programming language
Sources: https://ethereum.org/
On a blockchain, anyone can set up a
node that replicates the necessary
data for all nodes

14. • A platform which provides the most secure, private, and encrypted cloud
storage, using blockchain technology and peer-to-peer protocols
• Storjcoin X (SJCX)
• USERS EARN MONEY
• 10-100X MORE COST
EFFECTIVE
• SECURE, PRIVATE &
FAST NETWORK
MetaDisk – KEEP DATA
• Each file -> split into shards -> encrypted
-> upload to the network
• Only you, with your private key, have
access to your data.
DriveShare – EARN MONEY
• Rent out extra hard disk space in exchange
for SJCX
Initial crowd offering
• Mid-October 2014
• Raised 910 BTC
• Goal: 9800 BTC
Future crowdsales
• Fund new projects and ideas
• Support development of
ongoing projects
CROWDSALES
Sources: https://storj.io/

15. Secure Access For Everyone
• A fully decentralized platform with open-source programs
• Most of what can be done on current internet can be done with
SAFE
• Data on this platform are heavily ”shredded” into chunks and then
encrypted
• Maidsafe(Massive Array of Internet Disks) keeps track of the
allocation of hard disk space and communication between
computers
Mastercoin
Bitcoin
Crowdfunding
Create
Safecoin
40%
Reward
Left
earned
by
• “Farmers” who rent out their hard disk storage space to the net works
• “Core developers” who improve SAFE network code by fixing bugs and
adding new features
• “Builders” who make their applications available on the networks.
Payment is according to applications’ popularity
• A potential crowdfunding platform for application creators
sources: http://maidsafe.net/

16. • A potential crowdsales platform for digital assets, provides fast & reliable
messaging combines with secure and fast Bitcoin wallet
Will issue
100 million coins
• Bonus block rewards
• Promotion
• Marketing
• Bounties
• Network R&D
• Operation Cost
45 million
Stakeholders
10 million
Daily airdrop
for 5 yeas
45 million
Gems
• A messaging application that is built on top of Telegram.
• GetGems groups can have up to 200 members.
• Support replies, mentions and hashtags that help maintain order and
keep communication in large communities efficient.
• Has gif search, art photo editor and an open sticker platform.
GetGems
• Gems is a social network currency.
• Ways to earn Gems:
• register to the app
• invite new users who register with the referral code
• tap on the "Daily Bonus”
• Gems can be trade on selected exchanges
• Daily air-dropped Gems are to the “Exodus,
dress”(addresses that were given the coins).
• Ecosystem automatically credits those accounts according
to contribution.
• Value of gems will increase as the network effect of the
number of uses and advertisements kick in.
Gems
sources: http://getgems.zendesk.com/

17. • Self funding and self-sustaining platform gives the stakeholders the power to direct
where blockchain reserves are spent
Sources :https://bitshares.org/technology/stakeholder-approved-project-funding/
• A protocol for issuing
DAC shares with
shareholders working
together to secure the
system.
• Disrupt anything that
deals with digitized or
collateralized assets.
• music
• insurance
• Derivatives
• banking services
• and industry
Bitshares
• The business plan can be encoded in open-source software that operate automatically in
transparent manner.
• Business can easily produce profits by providing services that can charge transaction or usage fees.
• These profit can in turn be distributed to holders of Bitshares.
A self-sustaining funding model

18. • A decentralized domain name system(DNS) that cannot be censored /shut
down.
Namecoin •Top-leve domain(TLDs) such as .bit can exist that are not owned by anyone
•DNS lookup tables are shared on a peer to peer system.
Peer to peer Low fees Worldwide Secure No limit
• A decentralized peer- peer music network to develop the front- and back-
end projects that give BitShares Music Blockchain or DAC
• BitShares Music Foundation is a nonprofit organization.
• PeerTracks is a company that plug into the Bitshare Music blockchain.
• It allows for a user-friendly way for artists and fans to interact with each other by being a music
track exchange that the buying and selling currency is DAC notes.
• Artists will be able to create his/her own digital currency.
sources: https://www.weusecoins.com/what-is-namecoin/
sources: http://peertracks.com/

19. • Colored Coins is based on blockchain technology and focuses on using the technology to hold
real assets.
• Since the blockchain is public, it allow color-specific addresses, which hold colored bitcoins.
• One can track the assets simply by knowing the first Colored Coins and tracking them throughout
transaction history.
• Finally a way to manage a truly decentralized crowdfuding campaign where investors don’t have
to trust a complex and limited exchange protocol, the “distribute” feature creates standard
Bitcoin transactions.
• A way to manage a truly decentralized crowdfunding campaign with real
assets
Australian hair salon Klippt
started crowdfunding campaign
with colored coins.
Vapetropolis held an IPO on the Bitcoin
blockchain using Colored Coins, through
Coinprism
Sources: http://blog.coinprism.com/

20. • A debt recording, clearing and settlement agent without real-world
enforcement power.
Native
Currency
XRP
Create
100 billion
• Creators
• Seeders
• VC companies
• Other founder
20%
left
55%
• Users
• Strategic partners
• Ripple ledger only records the amounts owed by users to
another for the Ripple native currency XRP-denominated
transactions and its use in house ledger and for transaction in
other assets.
• Users will have to define who they trust as peer and set the
limit of lending for different instruments.
• The users themselves are responsible for the counter party risk
and they can act as market makers.
• Small transition fees is charged for each transaction as an
antispam measure and the fee paid in XRP is destroyed.
• The gate way to redemption and subscription is via Ripple
network.
International Payment
Infrastructure Costs
Sources :https://ripple.com/

21. • Hiring specialists to run their crowdfunding
campaigns
The agency 2.0 has managed more than
campaigns, with average funding increasing .
Startups Agency
200
Sources: www.entrepreneur.com/article/248122

22. In fact, an increasing number of VCs
want startups to engage in
crowdfunding campaigns to test
their products and ask for customer
feedback.
• VCs and crowdfunding will co-exist
Sources: www.entrepreneur.com/article/248122
crowdfunding campaign
posted in the AngelList

23. • drive corporate
innovation
• offer alternatives to
focus groups
Test the
market for
new products
•The entrance of
Fortune 100companies
destroy the
crowdfunding culture
Make it
harder for
startups to
stand out.
• More corporations launch projects on crowdfunding
Sources: www.entrepreneur.com/article/248122

24. Reference Book:
David Lee Kuo Chue－Handbook of Digital Currency Bitcoin，Innovation Financial
Instruments，and Big Data－Academic Press（2015）
Q&A Thank you!