1.
CROWD FUNDING
LESSONS LEARNED
BY VIDAR @BLACKTAR ANDERSEN
VIDARANDERSEN.COM

2.
I’M VIDAR ANDERSEN
• NORWEGIAN LIVING IN COLOGNE, DE
SINCE 2005
• PROFESSIONAL EXPERIENCE WORKING
WITH F500 AND GOS SOLVING PROBLEMS
WITH WEB/MOBILE TECH SINCE 1997
• STARTUP FOUNDER & ENTREPRENEUR (HITS & MISSES)
• CORPORATE ENTREPRENEURSHIP CONSULTANT TO F100
CORPORATIONS THROUGH PLUSANDERSEN.COM
• EDUCATOR (STARTUP NEXT INSTRUCTOR, UNIVERSITY
LECTURER ON STARTUP ENTREPRENEURSHIP &
CERTIFIED LEAN LAUNCHPAD INSTRUCTOR @ STANFORD)
MORE: VIDARANDERSEN.COM

3.
I’VE BEEN AROUND
AND MORE…

4.
I FOUND STUFF TOO

5.
CERTIFIED
LEAN LAUNCHPAD EDUCATOR
@ STANFORD 2013
#PIXORITDIDNTHAPPEN

6.
MY CROWD FUNDING
EXPERIENCES
#1
#2

7.
NUMBER OF USERS
ALL GERMAN NATIONAL
PLATFORMS COMBINED
ORDER OF MAGNITUDE
BIGGER
(AKA NUMBER OF READY WALLETS)

8.
TRY #1
IPHONE
APP
AN
INSTAGRAM
FOR
ONE SECOND
VIDEOS

9.
ONESEC
HYPOTHESES
• IT IS POSSIBLE (FOR US - RIGHT NOW) TO
CROWD FUND THE DEVELOPMENT OF AN
IPHONE APP?
• IS THERE ANY INTEREST IN THE MARKET FOR
THIS PRODUCT?
• HOW EFFICIENT IS OUR SOCIAL AND
MARKETING REACH AND SKILLS?
• WHAT IS THE CONVERSION RATE FROM
PUBLISHED STORIES ABOUT THIS?

10.
ONESEC - VIDEOS
• THE APP SPOT
HTTP://YOUTU.BE/9PJ4HKCRA3E
• THE CAMPAIGN VIDEO
HTTP://YOUTU.BE/TGSH8EBY-YS
• $ 25
HTTP://YOUTU.BE/RR3MSVYNJW4
• $ 500 (WE SOLD ONE!)
HTTP://YOUTU.BE/HUQ2CHZ7MK4
• $ 1.000
HTTP://YOUTU.BE/UQN2KY9REPA

11.
#FAIL

12.
#WIN
ACQUIRED BY TWITTER IN OCTOBER 2012 FOR A REPORTED
$30 MILLION

13.
IDEAS
ARE
WORTHLESS
EXECUTION
IS
EVERYTHING

14.
STATS
• ONLY 8%
OF GOAL REACHED
•GAZILLION
HOURS WASTED

15.
#FACEPALMIF WE WOULD HAVE INVOICED THE HOURS SPENT
DOING CUSTOMER WORK INSTEAD OF RUNNING
THIS CAMPAIGN WE WOULD HAVE MADE
10XOUR GOAL… BUT:
MADE THE FRONTPAGE OF INDIEGOGO TECH CAMPAIGNS
FEATURED ON INDIEGOGO BLOG
FEATURED ON DVICE
FEATURED ON TREND HUNTER
FEATURED ON BUZZ PATROL
FEATURED ON GADGET EXPLORER
PETE HATES MUSIC LOVES ONESEC
FEATURED ON MOBILE DEVICE RUSSIA
AND MANY MORE…

16.
TRY #2
I GET INVITED TO
STANFORD
TO SPEAK ABOUT THE
COLOGNE STARTUP
SCENE
TO GET TAUGHT &
TRAINED
BY STEVE BLANK
AS A SCHOLARSHIP
AND TO BRING BACK
THE BEST STARTUP
EDUCATION AVAILABLE
TO COLOGNE, DE

17.
HYPOTHESES
• CAN I GET THE MAJORITY OF THE STARTUP SCENE
OF COLOGNE TO OWN A STAKE IN BRINGING BETTER
ENTREPRENEURIAL EDUCATION TO COLOGNE?
• CAN I GET FRIENDS AND STRANGERS TO CO-INVEST
AND SPLIT MY FLIGHT AND LIVING COSTS FOR THE?
DURATION WITH ME?
• CAN I MAKE THIS A STORY BIGGER THAN MYSELF,
ABOUT A LARGER GOAL?
• CAN I EMOTIONALIZE IT AND CONNECT WITH THE
AUDIENCE?

18.
HYPOTHESES
• CAN I GET THE MAJORITY OF THE STARTUP SCENE
OF COLOGNE TO OWN A STAKE IN BRINGING BETTER
ENTREPRENEURIAL EDUCATION TO COLOGNE?
• CAN I GET FRIENDS AND STRANGERS TO CO-INVEST
AND SPLIT MY FLIGHT AND LIVING COSTS FOR THE?
DURATION WITH ME?
• CAN I MAKE THIS A STORY BIGGER THAN MYSELF,
ABOUT A LARGER GOAL?
• CAN I EMOTIONALIZE IT AND CONNECT WITH THE
AUDIENCE?
ES!

19.
#EPICWIN

20.
STATS
•203,26% OF GOAL REACHED
• 12 HOURS TO MEET 100% GOAL
• RUNNING TIME 19 DAYS, 52 PLEDGERS
• 1,707 FACEBOOK LIKES, 243 TWEETS
• MADE INDIEGOGO GLOBAL HOMEPAGE

21.
SO WHAT
DID I LEARN?

22.
ONESEC
HYPOTHESES
• IT IS POSSIBLE (FOR US & RIGHT
NOW) TO CROWD FUND THE
DEVELOPMENT OF AN IPHONE
APP?
• IS THERE ANY INTEREST IN THE
MARKET FOR THIS PRODUCT?
• HOW EFFICIENT IS OUR SOCIAL
AND MARKETING REACH AND
SKILLS?
• WHAT IS THE CONVERSION RATE
FROM PUBLISHED STORIES ABOUT
THIS?
NO!
YES!
HORRIBLE!
NON-EXISTING!

23.
ONESEC
CONCLUSIONS
• WE FAILED TO EXPLAIN THE PRODUCT WELL
ENOUGH
• WE FAILED TO MAKE AN EMOTIONAL CONNECT
WITH POTENTIAL USERS AND BACKERS
• WE FAILED TO IDENTIFY THE TARGET USER
SEGMENTS AND MULTIPLIER GROUPS
• WE FAILED WITH TONGUE-IN-CHEEK, NO-BUDGET
STYLE WHEREAS MORE SUCCESSFUL CAMPAIGNS
USE BETTER STORYTELLING AND POLISHED VIDEOS

24.
TRY #2
CONCLUSION
COLOGNE LOVES STARTUPS!

25.
CONCLUSIONS
• HAD A VERY CLEAR STORY
• HAD A VERY CLEAR “WHY” AND “BUY-IN”
• HAD A VERY CLEAR, LIMITED AUDIENCE
• HAD A “MODEST” GOAL
• TRANSPARENCY ON HOW EXACTLY THE MONEY WOULD BE USED
• HAD “SOCIAL PROOF”
• CLEARLY COMMUNICATED WHAT WOULD HAPPEN IF GOAL NOT
REACHED
• PUSHED LIKE CRAZY - BEYOND UNCOMFORTABLE AND THEN SOME

26.
LESSONS
LEARNED
THINGS TO CONSIDER FOR YOUR CAMPAIGN

27.
SHOW THE PRODUCT
• MAKE PEOPLE UNDERSTAND THE
PRODUCT
•
MAKE PEOPLE UNDERSTAND & FEEL
WHY THEY WOULD WANT THE PRODUCT

28.
FIND THE MULTIPLIERS
• WE FAILED TO FIND THE GROUPS OF
PEOPLE AND CHANNELS OUTSIDE OF OUR
FRIENDS, FAMILIES AND NETWORK
OUTSIDE THE STARTUP WORLD WHO
WOULD BE INTERESTED IN AND
PASSIONATE ABOUT THE PROBLEM THE
PRODUCT IS SOLVING
• ONCE WE HAD REACHED ALL OF OUR
NETWORKS, THE CAMPAIGN STALLED

29.
• DO THE RESEARCH UP-FRONT, TEST AND
FIND THE COHORTS AND CHANNELS, THE
PEOPLE WHO YOUR PRODUCT AND
MESSAGE WILL RESONATE WITH BEFORE
LAUNCHING
• HAVE AN ACTUAL PLAN ON WHO TO
MARKET IT TO, WHERE THEY ARE AND
HOW TO BEST REACH THEM
FIND THE MULTIPLIERS

30.
STORYTELLING
• HAVE A STORY TO TELL, CREATE ONE - YOU
NEED IT!
• ADD AS MUCH AS POSSIBLE TO THE STORY
ABOUT “WHAT’S IN IT FOR ME” FOR THE USER,
FOR THE BACKER: “ONLY YOU MAKE IT HAPPEN”
• “IF YOU HELP MAKE THIS HAPPEN, YOU WILL BE
ABLE TO DO X AND Y”
• FOCUS ON THE EMOTIONAL APPEAL, THINK
APPLE, THINK TITANIC

31.
WHAT’S IN IT FOR ME
• EMOTIONALIZE IT
• MAKE THE BACKERS PART OF THE STORY /
EXPERIENCE
• VISUALIZE IN IMAGES WHAT’S IN IT FOR
THE BACKERS
• SHOW, DON’T TELL

32.
INCLUDE THE BACKERS
• REACH OUT TO THE PEOPLE WHO HAVE
ALREADY BACKED YOU
• PUBLISH THEIR STORY ABOUT WHY THEY
BELIEVE IN YOU
• MAKE THE STORY ABOUT SOMETHING BIGGER
THAN YOURSELF AND THE APP
• KEEP BUILDING YOUR SUCCESS NARRATIVE,
YOUR STORY AS THE CAMPAIGN MOVES ALONG

33.
CONSEQUENCES
• CLEARLY COMMUNICATE WHAT IS GOING
TO HAPPEN IF YOU FAIL TO RAISE THE
GOAL AMOUNT
• PAINT A PICTURE OF THE CONSEQUENCES,
HOW POOR AND SAD THE KITTEN WILL BE
• EMOTIONALIZE IT

34.
WHEN & HOW TO PUSH
• REACH MORE THAN $ 1.000 PLEDGED
BEFORE PUSHING TO PRESS
• KEEP PUSHING PRESS ALTHOUGH THEY
FIRST DON’T REACT
• KEEP IT UP AND PING PRESS ON ANY
UPDATES
• KEEP BUILDING YOUR MOMENTUM STORY

35.
TRICKS
• PAY THE FIRST $ 1.000 YOURSELF, CONSIDER
THE PAYPAL FEE MARKETING EXPENSES
• USED PAID MARKETING TO TARGET YOUR
AUDIENCE AND DRIVE TRAFFIC TO
CAMPAIGN
• YOU CAN ACTUALLY EXTEND RUNNING TIME
OF CAMPAIGN BY CONTACTING INDIEGOGO
SUPPORT BY MAIL

36.
SO YOU GOT FUNDED -
NOW WHAT?

37.
AFTERMATH
• DELIVERING ON PERKS CAN BE A PAIN IN THE NECK AND A NASTY
FINANCIAL SURPRISE
• BE VERY CAREFUL ABOUT HOW MUCH YOUR PERKS ARE GOING TO COST
IN TIME AND MATERIAL TO DELIVER AND CALCULATE ALL THIS IN
ADVANCE, ADD TO AMOUNT YOU ARE RAISING IF NEEDED
• KEEP PLEDGERS INFORMED IN THE TIME (YES IT IS GOING TO TAKE MUCH
LONGER THAN YOU THINK) IT TAKES FROM YOU CLOSE TO YOU CAN
FULFILL ON YOUR PLEDGERS’ PERKS
• BEST CASE, USE ONLY PRODUCT OR DIFFERENT VERSIONS AND AMOUNTS
OF ITSELF AS PERKS OR IF NON-PRODUCT ONLY PERKS THAT DON’T HAVE
A LOT OF COST AND AFTERMATH LOGISTICS FOR YOU ATTACHED TO THEM
• ENCOURAGE PLEDGERS TO TAKE PICTURES OF DELIVERED PERKS AND
SHARE THEM ON SOCIAL MEDIA - PICS OR IT DIDN’T HAPPEN!

38.
SO YOU DID
NOT GET FUNDED -
NOW WHAT?

39.
SHIT HAPPENS -
DON’T TAKE IT
PERSONAL

40.
“NOTHING
VENTURED,
NOTHING
GAINED”

41.
LEARN,
CHANGE,
REPEAT

42.
GOOD LUCK!
TELL ME ABOUT YOUR CROWD FUNDING PROJECT
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