Presentation on crowdfunding

2. Crowdfunding

4. A Statistical View on Crowdfunding

5. Crowdfunding is the use of small
amounts of capital from a large
number of individuals to finance a
new business venture.

7. Definition
 Crowdfunding was created
by entrepreneur Michael
Sullivan in 2006.
 Crowdfunding involves
a more specific request:
The crowd is solicited
for financial
contributions to a
particular venture or
cause.
 Such as a film project or
cancer research.

8. Major driving forces behind Crowdfunding
1. This is a tool for capital
formation via web 2.0
2. JOBS Act 2012 has been
working as a major driving forces
to initiate crowdfunding more
than before
3. Crowdfunding Campaign
4. Crowdfunding Models
5. The role of technology to grab
the marketplace

9. There are 3 most important criteria an entrepreneur needs
to understand for increasing crowdfunding marketplace:
A) Crowdfunding Campaign: Is an open call in which the recipients is any number of
the crowd that decides to support the business plan.
B) Crowdfunding Owners: The person or company who is in the charge of the
campaign.
C) Crowdfunding Platform: Supports the campaign owner’s personal means of
communication and outreach.

10. Future of Crowdfunding

11. The Crowdfunding World Map
 Campaign owners reaches out for support
into initial channel.
 High market growth among the countries.
 Acceleration the awareness in globally.

12. Crowdfunding World Map : Global
Crowdfunding Volumes

13. Crowdfunding World Map : Global
Crowdfunding Volumes

14. The Market Outlook
Anticipated healthy growth rate of crowdfunding;
Rising more capital through the social media
Platforms offering reward-based crowdfunding,
CFPs will advance their crowdfunding models
It continues increasing number of business and
individual

15. Crowdfunding cons in outlook
Your idea will be out directly in front of the public
It may drum up your interest in your project
Success requires investing tireless effort

16. Crowdfunding Models
Crowdfunding Platforms (CFPs) focus on four main models:
Equity based
crowdfunding
Lending
based
crowdfunding
Financial
Donation
based
crowdfunding
Rewards
based
crowdfunding
Non-
financial

17. CFPs Activity across the 10 Most Active
Categories
10 most popular categories are presented in the bar chart where 0%
resembles no activity within the sample and 100% resembles high
activity across the entire sample for a particular category.
Source: Crowdfunding Industry Report 2013.

18. Financial versus Nonfinancial Return
Crowdfunding
 Financial crowdfunding involves an expectation for the
crowdfunder to make a financial return on investment.
 Lending-based or equity-based crowdfunding are
examples of financial crowdfunding.
 Non-financial crowdfunding is that, there is no direct
possibility for the crowdfunder to make a financial return
on the investment.
 Reward and donation crowdfunding are examples of
non-financial crowdfunding.

19. Donation-Based Crowdfunding
Donation crowdfunding is one of the non-financial models.
Crowdfunders typically have intrinsic motivation to donate, and
returns will be intangible benefits from backing the project.
Source: Crowdfunding Industry Report 2013.

20. Rewards-Based Crowdfunding
Reward crowdfunding offers crowdfunders non-financial benefits in
exchange for their pledge. The most common reward crowdfunding
model is a pre-purchasing platform.
Source: Crowdfunding Industry Report 2013.

21. Lending-Based Crowdfunding
Lending-based crowdfunding is a financing model where crowdfunders
lend money via CFPs either directly or indirectly to potential borrowers.
Source: Crowdfunding Industry Report 2013.

22. Equity-Based Crowdfunding
Equity crowdfunding is the act of offering securities to the general
public by privately owned businesses, usually through the Internet.
Source: Crowdfunding Industry Report 2013.

24. Crowdfunding Campaign

25. Writing a Business Plan Disclosure Document
Basic information
Description of the business
Description of your financial condition
Use of proceeds of the offering
Valuing Your Company: Pricing securities and
understanding capital structure
Reviewed versus audited financial statements
Budgeting, projections and forecasting

26. Basic information
Company’s name
Legal status,
Physical address
Web site address
Names of the
directors and officers

27. Description of the business
Summary
Market analysis
Marketing and sales
Detailed product or service
Description

28. Description of your financial condition
If you are raising $100,000 or less, delivering recent
income tax return and financial statements, certified
by the CEO.
If you are raising between $100,000 and $500,000,
the financial statements have to be reviewed by an
independent public accountant.
If you are raising between $500,000 and $1 million,
financial statements have to be audited by an
independent accounting firm.

29. Use of proceeds of the offering
State purpose and intended use of the
proceeds
Target offering amount
Deadline to reach the target offering
amount
Regular updates regarding the progress of
the issuer

30. Valuing Your Company: Pricing securities and understanding
capital structure
Projected future performance to figure it
out.
Where you think the company will be, say,
in three years $500000
Equity, donation, reward

31. Budgeting, projections and forecasting
Cost allocation and disbursement
Assumption
Multiple projection