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Learn About CrowdFunding For additional information please contact Bill Joyce, President Vision Management A CrowdCreative Company 817-918-4667

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Presentation on theme: "Learn About CrowdFunding For additional information please contact Bill Joyce, President Vision Management A CrowdCreative Company 817-918-4667"— Presentation transcript:

1 Learn About CrowdFunding For additional information please contact Bill Joyce, President Vision Management A CrowdCreative Company 817-918-4667 wcbs2008@gmail.com

2 Are you ready to grab the bull by the horns? Picture by permission from: http://www.startup2startup.net/

3 We have all seen growth patterns like this…. In fact if we were to start an new Widget Company we would hope to convince our potential investors that our product would grow along these lines. CrowdFunding is real and it will be a major process within our economy for the foreseeable future. We have all seen growth patterns like this…. In fact if we were to start an new Widget Company we would hope to convince our potential investors that our product would grow along these lines. CrowdFunding is real and it will be a major process within our economy for the foreseeable future.

4 en·ter·prise (ntr-prz)n. 1. An undertaking, especially one of some scope, complication, and risk. 2. A business organization. 3. Industrious, systematic activity, especially when directed toward profit: Private enterprise is basic to capitalism. 4. Willingness to undertake new ventures; initiative: "Through want of enterprise and faith men are where they are, buying and selling, and spending their lives like serfs" (Henry David Thoreau). [Middle English, from Old French entreprise, from past participle of entreprendre, to undertake : entre-, between (from Latin inter-; see inter-) + prendre, to take (from Latin prehendere, prndere; see ghend- in Indo-European roots).] enter·priser n. The American Heritage® Dictionary of the English Language, Fourth Edition copyright ©2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company. All rights reserved.Houghton Mifflin Company

5 mom-and-pop [mom-uhn-pop] Show IPA adjective, noun, plural mom-and-pops. adjective 1.of or pertaining to a small retail business, usually owned and operated by members of a family: a mom-and-pop grocery. 2.of or indicating something, as an enterprise, investment, or project, that is independent, small in scope, and modestly financed.independent http://dictionary.reference.com/browse/mom-and-pop

6 Breakdown of the types of CrowdFunding? Like people, no two projects are the same but there are clear segments of CrowdFunding emerging: Non-Equity CrowdFunding Advance Product Sales Cause Contribution CrowdLending Peer-to-Peer Loans Micro / Business Loans Equity Level CrowdFunding 2013 for USA

7 ReasonMom & PopEnterprise Money RequirementsYES Expand Customer BaseYES Understand your customer betterYES Build Relationships with your CustomerYES Link others to your Vision / Mission – vendors Social Networks YES Be part of the “in-Crowd”YES Reason to CrowdFund

8 ACTIVITYTimeMoney Prepare for the Social Marketing Effort30 days Create a convincing presentation30 days Be ready to respond1 day DO IT!30-45 days Measure your activitiesOngoing Continue to communicateOngoing CrowdFund Step-by-Step

9 ArgumentMom & Pop Enterprise An Unsaturated Market. Few capital sources exist for sub-$10 million consumer products businesses. Historically, venture capitalists and angels have focused their attention (although not exclusively, of course) on high tech companies in Silicon Valley and Boston. YES The crowd understands consumer products best. Professional investors will tell you the most important part of their job is due diligence, the process where investors look beneath the hood of a company — analyzing business plans, financials, products, markets, organization, legal issues, and a host of other items — before they invest in a business. YES Consumer product companies are efficient users of funding. Consumer products companies are often cash flow positive very early on and require minimal startup capital. YES Consumer Products Market Segment http://venturebeat.com/2012/04/04/3-reasons-crowdfunders-will-hit-consumer- products-first/

10 Key CharacteristicsMom & PopEnterprise In need of a reasonably low amount of capitalYesMaybe The company is interestingYes The entrepreneur is open to sharing his ideas and welcomes input from investors ??? The entrepreneur knows how to use social media tools Important Characteristics of Suitable CrowdCos http://www.smartermoney.nl/?p=619

11 Mom & PopEnterprise You need to dress up: If you’re not careful, you might get burned: Standing out from the crowd is critical: 3 Reasons Why Crowdfunding is like Trick-or-Treating http://www.entreviewblog.com/2011/10/3- reasons-why-crowdfunding-is-like.html

12 BenefitMom & PopEnterprise Building Community Do-it-Yourself attitude with the crowd behind you. See it grow Build ongoing connection Local benefit http://www.hispanicbusiness.com/2012/4/18/ crowdfunding_a_new_way_of_investing.htm

13 INVESTOR PROTECTION: When discussing the current crowd funding taking place, the question is raised: "Why are people doing this?" If only 43% of projects on Kickstarter succeed, why aren't people crying foul but instead pledging more than ever before? ($7M in March on Kickstarter compared to $4M in January). The answer is simple. They want to help someone they know. They want to support an idea. They want to be part of a community and they want some recognition for it. People are drawn to crowd funding because they are capitalists. They admire entrepreneurs, and they know that sooner or later they may be entrepreneurs as well. INVESTOR PROTECTION: When discussing the current crowd funding taking place, the question is raised: "Why are people doing this?" If only 43% of projects on Kickstarter succeed, why aren't people crying foul but instead pledging more than ever before? ($7M in March on Kickstarter compared to $4M in January). The answer is simple. They want to help someone they know. They want to support an idea. They want to be part of a community and they want some recognition for it. People are drawn to crowd funding because they are capitalists. They admire entrepreneurs, and they know that sooner or later they may be entrepreneurs as well. http://www.sbecouncil.org/legaction/display.cfm?ID=4575 Emphasis added – wcj iii Crowdfund Investing is more than just money - it is facilitation, diligence, team building, and valuation. Most importantly, it is the engine that will create much needed jobs.

14 CrowdCreative The new way to build great ideas! Together we can make it happen…


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