This document discusses crowdfunding and its growth as a new fundraising platform. It provides context on crowdfunding through definitions and examples. Key details include statistics on crowdfunding growth from Kickstarter, with music and film being the largest categories. The pros and cons of crowdfunding as a fundraising platform are outlined. Environmental factors are presented, such as cuts to arts funding in Ireland. A case study of a successful crowdfunding campaign for a music project is examined, showing funds raised and lessons learned.

1. The Business of Fun – 2011 AOIFE Conference
Stuart McLaughlin
Business to Arts | Fund it
@businesstoarts | @fund_it

2. “Crowdfunding involves an open call, essentially through the
internet, for the provision of financial resources either in the form of
a donation or in exchange for some form of reward and/or voting
right in order to support initiatives for specific purposes.”
Lambert, T & Schwienbacher A (2010) An Empirical Analysis of
Crowdfunding.

3. “In 1997 when Marillion scheduled a European tour to support its
new album, keyboardist Mark Kelly posted an Internet message
stating that the band would not tour the United States due to a lack
of record company support. Fans of the band worldwide joined
forces to raise over $60,000 to underwrite it, and the band
undertook its largest North American tour since 1991. “
www.indie-music.com

5. PROS CONS
New fundraising platform Appropriate fundraising platform?
Marketing & pre-sales Fees/charges/decline rates
Consumer/Audience engagement All-or-nothing approach
Value in social network Consumer/Audience engagement
Legalities/Governance/Reputation Time/labour intensive
Budgeting/planning Computer & social media skills
Fundraising experience Regulation/IP/Tax/Finance

6. Growth of Crowdfunding in US – Kickstarter.com
$7 million pledged to projects in March 2011 on Kickstarter. Up from
$5 million in February 2011 & a little over $1 million in March 2010.
Kickstarter has a 43% project success rate.
http://www.googlelivesearch.com/web-news/kickstarter-celebrates-
birthday-releases-stats/

7. Growth of Crowdfunding in US – Kickstarter.com
Film:
Music: $19,717,790
$13,094,547
Music and film are by far the largest categories after two years.
http://www.kickstarter.com/blog/happy-birthday-kickstarter

8. Environmental Factors
“There is a clear opportunity for growth in Individual Giving to Arts & Culture in
Ireland.” Deloitte & Business to Arts (2008) Private Investment in Arts & Culture
Survey Report
“New Zealand, Australia & Ireland are the three most charitable nations in the world.”
World Giving Index (2011)
“The Arts budget is to be cut over the next four years by 15%.” Jimmy
Deenihan, Minister for Arts, Heritage & The Gaeltacht Speaking at the Global Irish
Economic Forum 7 – 8 October 2011.
“Funding from the Arts Council has been cut from €83 million to €65 million in recent
years.” Pat Moylan, Chair, Arts Council. Responding to comments made above on 10
October 2011.
“You need to look at an Irish diaspora crowdfunding mechanism which would give every
member of the diaspora a chance to contribute to Ireland's recovery.” Former US
President Bill Clinton (2011) Speaking at the Global Irish Economic Forum 7 – 8
October 2011.

10. 7 : 80 : €258k : €54

11. 7 : 25 : €98k : €51

12. Emails
How to run a
• Personal & Organisational
crowdfunding • Launch (Informative)
• Throughout (Targeted)
campaign • Midway (General Update)
• Prior to End (General Update)
Social Media Other Media
• Event Pages
• Project Videos/Photos/ Media • Targeted
• Personalised Thank You • Informative
• Competitions • National & International
•Activity updates

13. Case Study: THISISPOPBABY YOMW
Total € Pledged v’s Website Traffic
Fund it Competition
1200 Launch
1000 Competition
Mass Competition
800
Email Target
600 Reached
400
200
0
Newspaper Blogs

14. Thisispopbaby Stats € %
Target* (incl 8% commission) 6,000.00
Total Pledges 6,670.00 111.2
No. of Pledges 175
Declined Pledges 160.00 2.7
Total Pledges (Honoured) 6,510.00 108.5
No. of Pledges (Honoured) 165
Average Pledge (Honoured) 39.45
Payment Charges 195.30 3.0
Fund it Commission 325.50 5.0
Total Raised 5,989.20

15. % of Total Funders at Reward Levels
40%
35%
30%
25%
20%
15%
10%
5%
0%

16. % Funds Raised at Reward Levels
25%
20%
15%
10%
5%
0%

17. Key Learning
• Transparency of project
• Balance in communication
• Repetition of fundit.ie/project
• Personal contact on & off-line
• Interest in concept of crowdfunding
• Increased audience engagement?
• Reward delivery crucial for future use

18. Stuart McLaughlin
Business to Arts | Fund it
@businesstoarts | @fund_it