8. WHAT IS CROWDFUNDING?
Crowdfunding describes the collective
cooperation, attention and trust by people
who network and pool their money and
other resources together, usually via the
internet, to support efforts initiated by other
people or organizations.
@MelfiAssociates
9. THE FOUR TYPES OF
CROWDFUNDING
•
Donation
Contributions go toward a charitable cause
•
Lending
Investors are repaid for their investments over a
period of time
•
Reward
Investors receive a tangible item or service in return
for their funds
•
Equity
Investors receive a stake in the company
@MelfiAssociates
11. ADDRESSING SCAMS AND FRAUD
IN CROWDFUNDING
“With the fraud rates in the unregulated world of donation
crowdfunding hovering around 3%, I think if the Internet's
sunlight effect is allowed to work, we will find investment
crowdfunding sees even lower incidents of fraud. There
are a number of factors at play in making that work,
including the pledge system and the basic vetting
required.”
David Marlett
Founder and Managing Partner,
Crowdfund International
@MelfiAssociates
13. SUCCESSFUL
PROJECTS:
• Create a call-to-action video
• Keep active & engaged with your
audience
• Get early funders aboard
• Reach the CF “sweet spot” ( 40% )
14. social media
noun (usually used with a plural verb) Computers.
Web sites and other online means of communication
that are used by large groups of people to share
information and to develop social and professional
contacts: Many businesses are utilizing social media
to generate sales.
15. COMMON PITFALLS
• Setting
campaign goals too high/low
• Lack of authenticity/personality in messaging
• Not accounting for processing/reward
fulfillment costs
• Excluding a proper “call to action”
Editor's Notes
Wel
Welcome – Thank sponsors
At it’s essence, crowdfunding is using the Internet to take a little bit of money, from a lot of people, to fund a business, idea or a cause
A key understanding of all of these (or a team member that specializes in at least one) is essential to having a successful crowdfunding campaign.
LEGAL – Need to have your idea and intellectual property protected. Moreover, legislation is still being finalized by the SEC, so legal expertise is essential.
FINANCE – Need to know how much money you actually need, why, and where it’s going to go
MARKETING – Defined as a “clear concise message to a targeted group of individuals.” Need both for successful crowdfunding
SOCIAL MEDIA – Becomes one of your main means of executing your business strategy.
And today, we are lucky to have a presenter that exhibits, practices and really owns all of these qualities
And we will illustrate these forms with a simple example basically everyone has experienced.
