Crowdfunding: How to Plan & Launch a Successful Campaign

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  1. 1. @TCNupdate Crowdfunding: How to Plan & Launch a Successful Campaign Chaim Letwin Professor of Management and Entrepreneurship, Suffolk University Ryan DeChance Senior Discovery Manager, The Grommet Sarah Meister Hardware, Design, and Technology Growth Manager, Indiegogo Joe Lemay Co-Founder and CEO, Rocketbook Jason Frishman Founder and CEO, Netcapital
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  3. 3. @TCNupdate What is Crowdfunding? An online, flexible open call relating to the raising of capital Dramatic surge in social media usage combined with persistent undercapitalization has given rise to tremendous growth in crowdfunding* Types of Crowdfunding Equity Reward Donation Debt (crowd lending) Hybrid *Schwienbacher & Larralde, 2012
  4. 4. @TCNupdate Types of Crowdfunding Equity 2012 JOBs Act in US Capital raising under this method provides various changes to the existing system and creates additional avenues for entrepreneurs and investors, more importantly general solicitation. Equity Crowdfunding Portals facilitate offers and sales of crowdfunded securities During a 12 month period, any investor (regardless of net worth) may invest $2,000 through crowdfunding: up to $100,000 in the aggregate based on income and net worth
  5. 5. @TCNupdate Types of Crowdfunding Hybrid Often a combination of donation and pre-order Kickstarter Indiegogo Huge tax benefits, especially when its used as a sales channel! Kind of the wild wild west No legal requirements so fraud concerns Fraud is currently estimated at less than 1%
  6. 6. @TCNupdate Crowdfunding Tips 1. Solve an actual problem (pain or delight) 2. Do your homework! 3. Bring $ to the table. Or something. Show that you are investing in yourself. 4. Be strategic about your funding goal amount. Think about what it signals. 5. Effective pitch. 6. Its not always about the money. And thats okay. 7. Make it your priority. At least for the 30 days.
  7. 7. @TCNupdate Other Sources of Capital Traditional Small Business Loans Government-supported loans (i.e. SBA) Friends and Family Angel Investing Venture Capital Grants Bootstrapping And many others!