Crowdfunding

Rewards-based crowdfunding (definition)

An open call, through an internet-based platform for the allocation of financial resources to support a specific goal, in exchange for some level of non- financial reward

Equity based crowdfunding

JOBS act (example is crowdfunder)

What has been cited as the world's largest rewards-based platform?

Kickstarter (Since it's initial founding in 2009: • $3.17 billion to more than 141K ventures • Roughly $3.6 billion pledged • Average funding < $10,000 • Almost 5,000 ventures > $100,000 • Success rate of roughly 36%)

Crowdfunding represents what?

a relatively new (and growing) source of financial capital

Crowdfunding (definition)

an open call through an internet based platform for the allocation of financial resources

Who is prosocial crowdfunding for?

basic ventures, generally impoverished individuals, seed funding, purchase inventory, capital investments, less than 1,000 on average

Motivations for people and kickstarters (heterogeneous motivations)

desire for a product or service, desire to support an entrepreneur or purpose, desire for belonging

Who is Rewards based crowdfunding for?

early-stage ventures, develop commercialize or market a specific product or service, 10k or less on average

The global crowdfunding industry is doing what

growing rapidly (passed angel investment in 2015 and global VC investment in 2016)

What does Have seed funding mean

having social influence, having someone put money into your kickstarter or whatever to motivate others to

Who is the kickstart crowd?

inexperienced laypersons, 25-34 yo college educated, emotion based, heuristic decisions, heterogenous motivations

Prosocial based crowdfunding

microlending, poverty alleviation through entrepreneurship (example is Kiva)

Rewards based crowdfunding

non financial rewards (examples are kickstarter, indiegogo)

What is the most common form of crowdfunding?

rewards based (crowdfunding)

Types of crowdfunding

rewards based, equity based, prosocial

Who is Equity Based Crowdfunding for?

ventures at all stages, typically for high growth profitable ventures, ventures that might also qualify for other forms of private equity, $$$$$