How do Crowd funding Transactions Work? Entrepreneur posts project including funding amount and time (1 to 90 days)
Backers fund the project (money in escrow account)
At project completion date, entrepreneur receives funds
Often is “All or Nothing” - if project under-funded entrepreneur gets NOTHING, if over-funded gets the over funded amount
What Types Of Ventures Can You Get Funding For?
For-profit ventures, non-profit ventures, creative ventures, ambitious ventures
Restrictions placed by platforms
- E.g., on Kickstarter.com, no ventures dealing in like pornography, violence,
firearms, weapons, lotteries, raffles, etc
- Kickstarter: project should achieve a goal (not pay (medical) bills, or go on vacation)
How Much Money Can You Raise Via Crowdfunding? Excluding Equity based Crowdfunding
Review of sites worldwide
- As little as $500 as much as $200,000 and more
Possibilities
- “Sweet spot” seems to be $4000 to $25,000
Doesn’t have to provide all the funding
- Can have other sources and followup sources too (e.g., bank loan)
Why Does the Crowd Donate or Invest? They like you (Friends, family, acquaintances)
The like your story (Friends, family, acquaintances, others)
Rewards (Tangible and intangible rewards given to backers)
Why is Crowdfunding occurring now?
Initial donation-based crowdfunding platforms weren’t even built until late 2009
Key trends for crowdfunding growth
- Simplicity of posting content online
- Massive growth of social networking (MySpace, Facebook, Twitter) gives individuals massive reach that they didn’t previously have
Essentials for a good Crowdfunding campaign
1. A Compelling Story and Prize
2. A Passionate Individual orTeam
3. Impressive Credibility
4. Lots of Suitable Followers
5. A Proven Process and Platform
What are the Fundamentals of a Crowdfunding Raise?
1.Choose your platform (e.g kickstarter, profounder, see Alchemy list)
2. Create an account
3. Create your funding project
4. Categorize your project
5. Create your project tagline
6. Create your project teaser text
7. Create your full text project summary
8. Determine the right fundraising amount
9. Determine the right donation time
10. Develop your list of rewards
11. Create your project visuals
12. Create your project video
13. Promote your project to your network
14. Maintain and update your project
Links to successful crowdfunding campaigns
http://www.pozible.com/index.php/archive/index/3778/description/0/0
http://www.pozible.com/index.php/archive/index/3701/description/0/0
http://www.kickstarter.com/projects/1060514964/escapecapsule-waterproof-iphone-4-case
http://www.pozible.com/index.php/archive/index/2454/description/0/0
http://www.crowdcube.com/investment/kammerling-s-10425
http://www.crowdcube.com/investment/bubble-balm-10394
http://www.kickstarter.com/projects/revolights/revolights-join-the-revolution
http://www.kickstarter.com/projects/1615737438/kammoktm-no-longer-bound-to-the-ground
If you have any questions or queries, or would like some assistance to implement a crowd funding raise pls call 1300 308882 or send an email to admin@alchemyequities.com.au and someone from the Alchemy team will assist you.
