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What’s happening with Crowd Funding How does Crowdfunding work How involved will investors be in your business Keys to successful crowdfunding and Video Make Something Awesome How variables work Sell Directly to Your Audience Sell Directly to Your Audience Cont. Don’t ask for Charity Perk Principles Perk Principles Cont. Follow Through - Connecting with Contributors Final Things To Do After It All Ends Final Things To Do After It All Ends Cont. Resources - Crowfunding Bible Free Resources – Crowdfunding Sites Resources – Crowdfunding Sites Cont. Resources – Crowdfunding Videos Resources – Crowdfunding Training Our QuBi Project
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The emergence of CFPs around the globe is accelerating. By the end of 2012 there are expected to be more than 530 platforms, up 60% since last year. Crowdsourcing.org breaks these down into four categories: Donation-Based, Reward-Based (accounting for the majority), Lending-Based and Equity-Based. The US leads the crowdfunding trend, with 191 CFPs currently based in the country. However, crowdfunding is also booming in Europe too, with 44 CFPs in Britain and 100+ in existence across the rest of the Eurozone.
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The practice of asking a large group of people or a community to financially support a project or cause through voluntary micropayments. How does Crowdfunding work and is it right for your business? Crowdfunding is an alternative method of raising finance for a business, project or idea, popularized by Kickstarter.com in the United States. Unlike angel investment, in which one person typically takes a larger stake in a small business, with crowdfunding an entrepreneur can attract a ‘crowd’ of people – each of whom takes a small stake in a business idea, by contributing towards an online funding target. It is believed that, in many cases, this model is more successful than attempting to source the full investment required from a single individual or organization. Furthermore, while some investors may be hesitant to invest in an unproven idea, crowdfunding provides an alternative way to source seed capital from a number of backers. Obviously a lot of traditional finance providers have come out against this new source of funding because it is starting to affect their traditional strong hold on finance.
Crowdfunding works best for start-ups that have a story to tell – whether a personal reason for starting the business, a passionate vision for what it could become, or a social mission. So get your story together and make it a little personal so people can feel part of your projects and be part of the whole process.
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People have to feel inspired to invest so you need to write a charismatic pitch to get potential investors’ pulses racing, or else display evidence of outstanding innovation. If you have a mundane or complicated concept which the public will struggle to connect to, crowdfunding may not be right for your start-up. However, any business can succeed with the right pitch – the key to crowdfunding success is: keep it simple. How involved will investors be in your business? If you are using a reward-based platform your commitment to your investors officially ends when their rewards are delivered. However, the more involved you keep them in your start-up, the more they will support and endorse your business as it progresses. You may wish to create a mailing list to send them newsletters or seasonal discounts to maintain their interest. The same principle applies if you crowdfund through an equity-based model, although you may also want to include evidence that you are delivering on forecasted growth and meeting financial targets. In the latter case, you do have some level of responsibility to your investors, however you shouldn’t be concerned about interference with the day-to-day running of your start-up. Depending on how much equity you released, generally each investor will only hold a point of a percentage stake in your business.
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In reality it is much like doing any business in that you need to provide credibility for your potential product or service and engage your supporters. Planning is critical for a great Crowdfunding project and we will provide you with all the research and information we gathered. Keys to successful crowdfunding is understanding the commitment the process entails. Crowdfunding can provide a fantastic opportunity for small businesses, but it should not be entered into lightly and, to be successful, requires a careful strategy. Make sure you have the resource in place to promote your pitch daily, as well as take every phone call and answer every email from potential investors. You need to create and maintain momentum to meet your target. Victoria Westcott talks about how crowdfunding is changing the way that we create, produce & distribute our creative work.
Victoria Westcott is a teacher turned entrepreneur turned movie producer. She is co-owner of Elgin Road Productions Ltd. and crowdfunded the money for her first feature film, Locked In a Garage Band, and has since gone on to hold crowdfunding workshops locally and in the USA. In this video Victoria lays out the foundations for a good projects and we will expand on these in the following pages.
http://www.youtube.com/watch?v=YY5EfaF61hI Follow Our Project: http://www.facebook.com/groups/qubiproject/
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Five Tips From The Video Make Something Awesome Getting people to invest in your project is all about creating something awesome that hopefully meets a need or inspires them to take action. A well prepared and properly laid out project will not only get your project fully funded but also lay the ground work for further ventures and projects. The project can be as varied as the mind can think. From technology to children’s books, movies to community and charity projects and so much more. If you are going to create a project make it something you are passionate about and will see through to the end. Whatever your approach to crowdfunding, your first order of business is to take a hard, analytical look at projects that have succeeded, as well as ventures that have failed. Your goal: To observe and learn how successful projects work, and to understand the subtle nuances and tactics that determine why some triumph while others don’t. The Winners and Losers
http://www.youtube.com/watch?v=oEdNLitrBqk Follow Our Project: http://www.facebook.com/groups/qubiproject/
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Don’t take this as gospel, but based on the findings, for the average $10K project (all else being equal): •
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• •
Do whatever you can to get featured on the site. Projects that are featured have a 89% chance of being successful, compared to 30% without. Make sure you have a video. All else being equal, a project without a video only has a 15% chance of success while a project with video has a 37% chance of success. Set your project for 30 days instead of 60 days. And start making friends on Facebook!
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Sell Directly to Your Audience Crowdfunding gives you the chance to raise awareness and build an audience prior to - or while -working on your project. Many successful creators consider these benefits to be more valuable than the funding. Non-monetary benefits of crowdfunding include: – Showing the world that you are not the only one to believe in your project (known as “third party validation” in marketing speak). – Building a network of supporters and advocates - even if people don’t buy your vouchers, they may talk about your project to their social network. (“word of mouth” marketing) – Starting distributing your product by selling your project vouchers - i.e. pre-sell your product (“market testing”). – Getting assistance from the public: let fans participate in your project. Hear their feedback! The public loves to see your face on your crowdfunding campaign video (no really!). So show yourself and tell the story of your project (briefly). Create a channel on Youtube plus other public video sites and add regular updates to build your audience prior to release.
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Sell Directly to Your Audience Cont Please use the tools at your disposal on the site to share your project with the world (Twitter and Facebook share, Grab the Widget, Facebook Recommend). Ask your friends to share your project page with their social network too. If you don’t already have an account with Twitter and/or Facebook, please create one. Twitter is a particularly valuable marketing tool, as it travels across networks easily. Create a mailing list (Mailchimp for instance is free for under 2000 email addresses and has great monitoring tool). People respond more to email than social messages. Own your public! Talk to people about your project and crowdfunding campaign (sounds old fashioned, but it is still the most powerful medium). Engaging your crowd is a bit like courting: you don’t usually just go and ask someone for sex… Identify your audiences. Start by asking yourself the questions: What does my project talk about (themes), where is it located (places of interest), how is it being produced (genres, methods), who is taking part (team and beyond)? However don’t give yourself too long either, or your campaign WILL stall. Deadlines actually help get things done.
Set Some Goals Follow Our Project: http://www.facebook.com/groups/qubiproject/
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Don’t ask for Charity The magic behind crowdfunding, I believe, is that you’re not asking for a handout. Some people think that slapping a PayPal “Donate” button onto a website or posting a Facebook status that says Please donate to my project/cause/whatever is fundraising. But in my experience, you’ll have the same chance of raising a significant amount of money by watching your navel lint accumulate. Unless you’re fundraising for a truly charitable cause, don’t ask for charity with your crowdfunding campaign. Unless I’m a family member or close friend, I’m not going to give you $50 to travel to France just because you ask nicely. Instead, make me a deal. Offer me something unique, compelling, cute, or useful—and ultimately meaningful—in exchange for my donation.
Most Crowdfunding sites embrace this idea by asking you to create perks (Kickstarter calls them rewards). Every donor to your campaign receives a perk. The more money someone donates, the bigger and better a perk they receive. Be professional when you present your information whether it be for a business or charitable project. Some sites will not allow you to raise money for charity and some specialize in charity crowdfunding. No matter what your project, communicate with your supporters and present a positive up beat project. Follow Our Project: http://www.facebook.com/groups/qubiproject/
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Perk Principles Offer perks directly related to (or produced by) your project. If you’re raising money for a film, don’t send me a Snickers. Your perks shouldn’t be so fancy/expensive that they suck up all of your donations. The point is to use your fundraising money for your project, not just providing the perks. (This isn’t necessarily true if you’re crowdfunding a physical product launch and essentially using the platform for pre-sales.) Your perks shouldn’t feel cheap. In other words: don’t make your perks so dinky that it feels more like a charity donation. My book campaign’s perks were too weak at the $225 and $350 levels (and perhaps other levels). Personalize, customize, and one-time-only-ize. Great perks can’t be found anywhere else. Produce excellent perks under $100. Most crowdfunding campaigns succeed through tons of small donations rather than a few big ones. Your $10/$25/$50/$75 perks will net the most cash, so make them awesome. The Best Perks Sell Meaning Most importantly, know this: You’re not offering perks, you’re offering meaning. Look at other projects like yours and see what they offer.
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How do you give people “meaning?” You do it by giving them the chance to: – be part of something big – support a motivated young artist, adventurer, or self-educator – be personally recognized – receive a behind-the-scenes look – meet you in person – enjoy a one-time-only offer – Of course, the quality of the physical (or digital) perk that you offer matters. Get an editor… or three. Please, please, please don’t just write up a first-draft project description and then launch it. Have a different set of eyes read your page (and your perks, and your personal bio) and give you constructive feedback. Do this two or three times. Really. Ask these friends / family / mentors /grammar-nazis to help you craft a compelling, compact, and typo-free proposal. Resources IndieGoGo Getting Started guide Kickstarter School Kickstartup Kickstarter Tips from a Fan of Crowdfunding The IndieGoGo Blog Follow Our Project: http://www.facebook.com/groups/qubiproject/
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Follow Through - Connecting with Contributors “If you don’t come in with a known reputation, you have to build it and present a good representation of what it is that you want to make. Be yourself. Just like traditional investors, backers are investing in people. Keep your pitch short. Tell your story concisely and avoid being overly filled with angst. Your goal is to inspire potential backers. Be clear about the scope of what it is that you’re doing and convince your audience of your belief in your ability to pull it off.” -Jordan Weisman, Shadowrun Returns When Should You Launch ? “One big mistake we made was launching on a Tuesday at 5AM. When you launch determines when your project ends. Maybe it would have been better set at another day and time, like 5PM on a Friday. We could have had a great final day and a closing party. We could also have promoted that last opportunity to pledge… those final hours. But not on a Tuesday at 5AM.” Brian Fargo, Wasteland 2 Make sure you have all the elements and time set aside for your launch The connections you make in your Crowdfunding project can be with you a long time if you respect and nurture them. Follow Our Project: http://www.facebook.com/groups/qubiproject/
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Final Things To Do After It All Ends If your campaign has just finished and you have successfully raised funds, then congratulations! Now it’s time to actually do what you’ve promised in your pitch. Your campaign deadline may be over, but there’s a lot that needs to happen before your project is complete. Below are five things to consider after the campaign is over and some next steps: •
Your funds won’t arrive overnight If you’ve raised money by credit card, it can take up to two weeks after your deadline to see funds in your bank account. Intermediary banks, mis-typed account information or missing bank information can all slow down the disbursement process. Don’t commit yourself to writing any checks for at least two weeks after your campaign deadline.
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Don’t kill yourself trying to email each funder individually Most sites provide fulfillment information in a downloadable CSV file. Use this file to set up a ‘mail merge’ in Outlook, Entourage, or any other email program. You can group your funders by perk level and create custom emails for each group.
•
Update your funders regularly, especially after the campaign is over Just because you’ve raised funds don’t forget that your funders are potentially lifelong fans – tell them how the project is coming along, when they should expect their perks, and how you’re spending their money. People contributed because they want to be involved in your project, so make them feel like a part of your team!
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Final Things To Do After It All Ends •
Sh*t happens The manufacturing company that was going to give you an amazing rate will disappear at the last minute. Your producer will suddenly move to France. Your printer will run out of ink. Something will happen that was not supposed to happen, which may cause your project to be delayed. For small business owners, this might mean that your perk delivery date just got pushed back by 6 months. Instead of hiding the fact that your project has hit a roadblock, tell your funders. Tell them why their perks aren’t coming right away. Ask for their help – “does anyone know a good producer?” “Can you lend me some printer ink?”. You’ll be surprised by how resourceful and understanding your fans can be, as long as you keep them informed.
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It’s okay to launch a follow-up campaign If your project goes well, you will reach a point where you need more money. We encourage people to launch follow-up campaigns because that shows progress. If you do go back for a second round, tell people that you’re working on the same project, but that this is a new campaign. Link to your old campaign, and then give the new one a unique pitch description and perks. Tell funders what happened after your first campaign and what the new funds will go towards – this will encourage people who funded your first project to fund again.
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Resources Below are links to videos articles and general information we found in our research. We have been through and removed much of the non informative and duplicate material so you have quality content. Features Include: Best Crowdfunding Websites and Services Complete Guides: How to Start and Promote Any Project Expert Tips: Crafting Pitches, Rewards and Marketing Programs Advice from Today’s Most Successful Creators and Campaigns Handbooks to Building Powerful PR and Social Media Strategies Key Lessons and Takeaways from Top Hits and Failures
Free at http://www.crowdfundingguides.com/ The world’s most comprehensive guide to raising money online, The Crowdfunding Bible shows you how to launch, market and successfully operate a high-tech fundraising campaign, regardless of your chosen industry, scope or budget. Built for enterprising entrepreneurs and individuals alike, it reveals the secrets to catching the media and public’s eye, and convincing fans to support ventures of all types, in a language that everyone can understand. Follow Our Project: http://www.facebook.com/groups/qubiproject/
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Resources - Crowd Funding Sites Below is a list of crowd funding sites, including both US and non-US crowd funding sites. Note that some support creative projects while others are more business-oriented:
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Kickstarter http://www.kickstarter.com/ Indiegogo http://www.indiegogo.com/ Sponsume http://www.sponsume.com/ Go Fund Me http://www.gofundme.com Crowdfunder http://www.crowdfunder.co.uk/ Chipin http://www.chipin.com/ Citizen Effect http://www.citizeneffect.org Cofundit http://www.cofundit.com/ Crowdcube (UK) http://www.crowdcube.com/ Fundable http://www.fundable.com/ Peerbackers http://peerbackers.com/ Revenue Trades http://www.revolutiontrades.com/ Rockethub http://www.rockethub.com/ Sonicangel http://www.sonicangel.com/ Spot.us Startnext http://www.startnext.de/ Ulule http://www.ulule.com/ Cofundos http://www.cofundos.org/ Buzzbnk http://www.buzzbank.org/ 40billion http://www.40billion.com/
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Resources - Crowd Funding Sites • • • • • • • • • • • • • • • • • •
Appbackr http://www.appbackr.com/ Capangel http://www.capangel.com/ Crowdfund http://www.crowdfunding.co.za/ Digital Garage http://digitalgarage.co.za/ Globeforum http://www.globeforum.com/ Growvc http://www.growvc.com/ Innovatrs http://innovatrs.com/ Investiere http://www.investiere.ch/ Podium ventures http://podiumfunds.com/ Profounder http://www.profounder.com/ Raisecapital http://www.raisecapital.com Seedups http://www.seedups.com/ Seedmatch http://www.seedmatch.de/ Vencorps http://www.vencorps.com/ Venture Bonsai http://www.venturebonsai.com/ Wealthforge http://www.wealthforgeonline.com/ Wiseed http://www.wiseed.fr/wicket/web/ FriendsClear http://www.friendsclear.com
The Complete World Wide List
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Resources Crowd Funding Videos Crowdsourcing and Crowdfunding Explained http://www.youtube.com/watch?v=-38uPkyH9vI Rock The Post is a crowdfunding site oriented to fund small businesses http://www.youtube.com/watch?v=OI-bTpbkH4Y Victoria Westcott: Crowdfunding 101 http://www.youtube.com/watch?v=YY5EfaF61hI Tim Wright of twintangibles delivers a seminar on crowdfunding. http://www.youtube.com/watch?v=Wr2aS8Gvi2k Crowdfunding History and Future http://www.youtube.com/watch?v=N6QTr1BceFc Kickstarter with BeardedBros.com http://www.youtube.com/watch?v=8pcR9GUl0uw What Makes a Great CrowdFunding Video? http://www.youtube.com/watch?v=t7eRgyFHwz8 Fundbreak Australia https://vimeo.com/10837996 Crowdfunding with IndieGoGo http://www.youtube.com/watch?v=OgXzJX2wlwM Startup Sherpa (Kickstarter): How To Get Successful Projects http://www.youtube.com/watch?v=kqDNWcu6Hs0 Do a search on any video channel and you will find heaps more and remember its just the beginning.
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Resources Crowd Funding Training The best place to get training and learn how to put your project together is from the Crowdfunding sites themselves. Kickstarter School http://www.kickstarter.com/help/school/defining_your_project Indiegogo Training http://www.indiegogo.com/happiness/campaigner#started Sponsume Getting Started http://www.sponsume.com/getting-started Go Fund Me Fundraising http://www.gofundme.com/how-to-fundraise/ Kickstarter Rock Stars http://kickstarterrockstars.com/ Crowdsourcing and Crowdfunding http://www.crowdsourcing.org/ The Stats from eConsultancy http://econsultancy.com/th/blog/10074-crowdfunding-in-numbersstats
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QuBi Project Our project is to develop and supply a brand new media set top box that will turn any television with a hdmi port into a smart television.
There are a lot of small devices that do this but not a powerful box that will allow games , media management and much more. Our progress so far We have sourced the hardware and the software for our box and at present we are getting the software customized for both our system and also so it can be customized by the customer. This unit has been customized with the most-used programs preinstalled for you. Access your social media with YouTube, Twitter, Facebook, and MSN. Communicate using Email and Skype. Watch your favorite videos, view your photos, listen to your favorite music, read eBooks and much more. Follow us on http://www.facebook.com/groups/qubiproject/ and watch as our project develops and also join in the conversation Crowd Funding
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Crowd Funding
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Crowd Funding
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