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What is Crowdfunding?

crowdfunding
kra dfnd/
noun
noun: crowdfunding; noun: crowd-funding
1 the practice of funding a project or venture by raising many small amounts of money from a
large number of people, typically via the Internet."musicians, filmmakers, and artists have
successfully raised funds and fostered awareness through crowdfunding"

How Important is Crowdfunding?

Over $2 Billion raised through Kickstarter

quity Crowdfunding in UK raises more that VCs and Angel

For almost anyone wanting to raise the money to start a business or a social enterprise, I
would advise them to investigate the crowdfunding route very seriously
Luke Johnson, Chairman of the Centre for Entrepreneurs

The Reality is shrouded in mystery

Just put it up on online

Strangers will give me money for my idea
It will cost me nothing.

The Truth

Most campaigns fail!

Most successful campaigns raise less than 10k
Some people lose money on a crowdfunding campaign

Who is Crowdfund Campus?

Henry Jinman
henry@crowdfundcampus.com
07545 898120

Alex Bargate
alex@crowdfundcampus.com

Graduate Entrepreneurs for Graduate Entrepreneurs

University Partners

Start with Why?

Lack of funding should NOT be a barrier to opportunity

Crowdfunding is not JUST about raising money
Validate through Pre-selling

http://sandpit.cc

The Exercise

Create and Run Simulated Crowdfunding Campaigns

4 Stages
IDEATE
CREATE
VALIDATE
DEMONSTRATE

The Exercise Aims

Understanding of crowdfunding
Identify and Validate Opportunities
Creativity and Innovation
Strategy
Communicate Ideas
Tolerance of Failure

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1. Ideate

How much disposable income is in the economy?

CC 1000 x 30 people = CC 30,000

1 CC = 1
CC = Campus Coin

Whats the purpose of your campaign?

What are you trying to do?

Set a defined goal.
Conduct a viable test.

Whats the target of your campaign?

How much do you need?

All-or-nothing Campaigns
Stretch Goals
110-120%

Good example
We have a prototype of
our product but we dont
have enough money to
buy stock. To make a
viable test we need to
order 100 units from our
manufacturer. The cost
per unit and delivery is
50. Therefore we need
5,000 and I will set a
crowdfunding target of
5000.

Bad example
My friend Gary says he
wants my product, he is
willing to pay 80 for it, I
reckon every person on
my University course will
want this. There are 100
people on my course
therefore I can raise
8000, but I want to
beat the system so I will
set a target of 800.

End of Idea Generation and Crowdfunding Strategy

You should:
-

Have an idea
Be crowdfunding for a defined purpose
Have set the amount of funds you NEED

BACKERS

Backer Journey

Image and Short Description

Video
Rewards
Long Discription/Pitch

Who will back your campaign?

Friends and Family

Alumni and 2nd Connection
Customers
Fans
Suppliers and other stakeholders
Philanthropists
NEW

WHY will they back your campaign?

A connection to the authors

To be part of it
To get early access to a new product
To bring about a social good
To give back

2. Create

Components to a campaign

Featured Image
Short Description
Long Description
Rewards
Video

Video

Tell your story

You are not Tarantino or Ang Lee
People buy from people
Music = emotion
30sec sweet spot

1 minute pitch
Why you do what you do?
Who you are?
What are you offering?
Why should they contribute?

N.B. This is not an Investment Pitch

Rewards

Consider

Who are your rewards appealing to?

Deliverable Rewards
Varied price range
Work out Cost

Reward Ideas

Get creative
Thank You
Product
Time
Knowledge

Description

Start with why!

https://www.youtube.com/watch?v=IPYeCltXpxw

Description

Images
Bullet Points
White space
Colours
Wall of text
Lots of techy talk
Picture of you and team

3. VALIDATE

Put your money where your mouth is!

Rules
You cannot contribute to your own Team
You do not have to spend all your money