crowdfunding & crowdsourcing

Crowdfunding & Crowdsourcing

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June 2014

PHRONESIS STRATEGIES

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This publication contains general information only and is based on the experiences and research of PHRONESIS STRATEGIES consultants. PHRONESIS STRATEGIES is not, by means of this publication, rendering business, financial, investment or other professional advice or services. This publication is not a substitute of such professional advice and services and the user of this publication should consult a PHRONESIS STRATEGIES consultant before making any decision. The user of this publication is solely responsible for outcome of any decisions based on information contained herein. PHRONESIS STRATEGIES, its owners, consultants or its associates make no representations or warranties regarding accuracy and completeness of such information and expressly disclaims any liabilities based on such information or on omissions therefrom. The user of this publication specifically agrees and acknowledges that all proprietary rights in the information available on this publication for all times shall remain the property of PHRONESIS STRATEGIES. Reproduction, redistribution and transmission of any information obtained from this publication, in any form, is strictly prohibited.

This presentation was delivered on 1st June 2014 at Vidarbha Management Association (VMA) and is intended for Internal Circulation only

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USD 5.1 Bn

3

Appx. Amount raised through Crowdfunding in 2013

(Source: http://www.crowdsourcing.org/editorial/crowdfunding-industry-trends-and-statistics-infographic/25662)

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Crowdfunding

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Types of Crowdfunding: Ø  Reward based (43%)

Ø  Donations based (29%)

Ø  Equity based Ø  Lending based

(Source: http://www.crowdsourcing.org/editorial/crowdfunding-industry-trends-and-statistics-infographic/25662)



Pebble Watch

§  Category: Technology §  Target: $ 100,000

E-Paper Watch for iPhone & Android

Funding Received:

$ 10,266,845

(Source: Kickstarter)



OUYA

§  Category: Gaming §  Target: $ 950,000

A new kind of video game console

Funding Received:

$ 8,596,474




The Grand Theft Orchestra

§  Category: Music §  Target: $ 100,000

Amanda Palmer

Funding Received:

$ 1,192,793




But that seems to be a global phenomenon.. What about India?



Fin

§  Category: Technology §  By: Kochi based Startup

Wearable Bluetooth Ring; Allows to control up to 3 devices at a

time remotely

Funding Received:

$ 200,000

(Source: Sachitanand, R. (2014) “Not yet a madding crowd”, The Economic Times - Sunday Magazine)

Other benefits: 300 distributors, 40+ investors & at least dozen manufacturers interested



Gecko

§  Category: Technology §  By: Bangalore based Startup

§  Target: $ 50,000

Bluetooth tracking tool; Allows to track keys, wallet, children,

pets, medicines etc., play music remotely or act as camera trigger

Funding Received:

$ 135,410


Other benefits: §  Flooded with 7,500 pre-orders §  Got interest of Apple co-

founder Steve Wozniak



Lucia

§  Category: Films §  By: Director Pawan Kumar

Kannada movie

Funding Received:

INR 71 Lakhs from 600+ backers


§  Was a Hit §  Later sold rights to Udaya TV

for INR 1 Cr



Sochi Winter Olympics

(Source: http://articles.economictimes.indiatimes.com/2014-04-21/news/49290737_1_yuki-bhambri-vikas-gowda-lakh)

§  Category: Sports (Luge)

§  By: Shiva Keshavan (India’s first representative to compete in the ‘Luge’ sport at the Sochi Winter Olympics)

Funding Received:

INR 10 Lakhs



The Platforms

Global

& 500+ more

Indian

& several others



The Rewards

What Backers look for:

§  What it is you are trying to do §  How you will do it §  How the funds will be used §  Your qualifications to complete this

project §  The identities of the people on your

team (if you have one) §  How far along your project is

The more information you share, the more you will earn your backers’ trust. Creating a Video raises the chances of funding success


Can be anything, all on your imagination.

Some examples of rewards: §  First chance to pre-order §  Discount/ Free products §  Copy of CD, Limited edition of comic, §  Print from the show, Visit to the set § Naming a product/ component after

the backer §  Personal phone call §  Autographed Photos §  Any experience engaging the backer

more with the product etc.


People back projects that are exciting, creative, disruptive innovations or carries the potential to change the industry or society, and NOT projects that may be financially attractive but have little impact on the world


What is Crowdsourcing then?



Creater: D. Udaya Kumar – Associate Professor, IIT Guwahati



Has received over 6 million submissions over 70 years



Brainstorming session @ VMA



Crowdtesting – Testing of Mobile Apps

Platforms:

§  Passbrains (7,500 testers, adding 300-500 testers every month) §  99tests.com etc.

Why?

§  Much less time §  Around 50% cheaper

Who’s using it?

§  Mindtree §  Flipkart §  Ibibo §  Cleartrip §  Foodpanda §  Babyoye etc.



“My firm belief is that for 95% of Indians, even Rs. 51,000 is good enough to achieve a dream and asking for Rs. 51 as contribution from 1,000 people to start and do something new is easier than making business proposals and definitely better than killing their ideas due to lack of money”

- Ateet Bajaj – Founder, Start51.com

Thank You!!

VYOM SHAH M: +91-9158852515 E: [email protected]


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