crowdfunding describes the collective cooperation, attention and trust by people who network and...
DESCRIPTION
Almost $1.5 billion was raised in 2011 by Crowdfunding platforms around the world (according to an industry report released by Massolution). This amount is expected to double in 2012 and $6.2 billion is forecast to be generated by Crowdfunding sites in 2013 (Ref: Gartner Research). 536 Crowdfunding Portals (“CFPs”) worldwide 1 million successful campaigns were run by CFPs in 2011 Average fundraising campaign timeframe is 91 weeksTRANSCRIPT
CROWDFUNDING -WHY ALL THE HYPE?
WHAT IS CROWDFUNDING?Crowdfunding describes the collective cooperation, attention and trust by people who network and pool their money and other resources together, usually via the internet, to support efforts initiated by other people or organizations.
THE INDUSTRY Almost $1.5 billion was raised in 2011 by Crowdfunding platforms around the world (according to an industry report
released by Massolution). This amount is expected to double in 2012 and $6.2 billion is forecast to be generated by Crowdfunding sites in 2013 (Ref: Gartner Research).
536 Crowdfunding Portals (“CFPs”) worldwide
1 million successful campaigns were run by CFPs in 2011
Average fundraising campaign timeframe is 91 weeks
WHY IT WILL /WHY IT WILL NOT WORK
ADDRESSING SCAMS AND FRAUD IN CROWDFUNDING
“With the fraud rates in the unregulated world of donation crowdfunding hovering around 3%, I think if the Internet's sunlight effect is allowed to work, we will find investment crowdfunding sees even lower incidents of fraud. There are a number of factors at play in making that work, including the pledge system and the basic vetting required.”
David MarlettFounder and Managing Partner, Crowdfund International
FUNDS RAISED BY CATEGORY
AVERAGE FUNDS RAISED
A LOOK AT KICKSTARTER
THE SECRET SAUCE Social Media IS NOT A FAD
The average person spends over eight hours a week on social media and has over 150 friends on Facebook
78% of people make purchasing decisions based on peer recommendation
People "believe in the little guy" or they want to be "part of the next big thing“
People have a tendency to want to be part of a community
ASSUMING IT WORKS, HOW DO WE MAKE
MONEY? Portals Analysts of portals and investments Specialized Software Risk Managers (insurance) Professional Business Specialists Escrow Agents Resellers of Purchased Shares
QUESTIONS & ANSWERS