CROWD FUNDING YASMIN, LAURA P, LAURA G
FACTS AND FIGURES
_ Crowdfunding was founded in 2003 in the USA _ since 2011 it has established itself in Europe _ about €2.7 Billion were collected world wide in 2012 _ about €20 Million were collected in Germany in 2013
PROBLEMS IN GERMANY _ Germans are skeptical towards unknown projects _ Americans like to support new and special things _ Germans analyze too much _ Germans are not interested in helping to realise ideas
CLASSIFICATION AND DIFFERENT TYPES OF CROWDFUNDING // donation _ the crowd gives money or something else to support the cause > gets nothing in return other than the good feeling
// sponsoring _ the crowd gives money in exchange for a reward > often these rewards take the form of services like PR or marketing for the sponsor
// equity _ individual investors who are seeking to invest into something – but today, equity crowdfunding is only for accredited investors _ members of the crowd become part-owners of the company > (an enventual) financial return / profit in the form of a dividend or distribution
// lending _ the rewards are normally the interest and the payback after a certain lending period > receives an amount including an agreed share of the earnings of the venture (that can be a multiple of the original, but in case of a bad performance, also be nothing)
CROWDFUNDING PLATFORMS ON THE INTERNET: _ Kickstarter, IndieGoGo (US) _ Pling, StartNext (Germany)
// VERONICA MARS _ the highest funded crowd funding movie project _ campaign target amount raised: over $5,000,000 by 90.000 backers pledging $1 or more get a reward (stickers, t-shirts..), makes it attractive for people to pledge
// PLEDGE $25 OR MORE (11510 BACKERS) _ The Movie T-shirt // Pledge $35 or more (22997 backers) _ digital version of the movie + T-shirt + pdf of the shooting script // Pledge $1,000 or more (100 backers All gone!) _ red carpet + plus two tickets to the after-party // Pledge $10,000 or more (1 backer All gone!) _ speaking role in the movie
// WISH I WAS HERE _ raised 2 million dollar in 3 days (kickstarter)
// STROMBERG _ 1 million euro in 1 week (startnext) mixture between crowdfunding and crowdinvesting
// WHY IS CROWDFUNDING EXCITING? We believe crowdfunding is a classic disruptive innovation. In the offline world, it is difficult for investors to identify and invest in private businesses. It takes time to network into a deal, and even then the investment minimums are typically very high. CircleUp exists to make this process simple. Investors can discover opportunities, review information, and engage with management teams to ask questions and begin their diligence – all beginning with our private, secure platform. Investors still make their own decisions, but we make the process more efficient.
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