1. Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder, Buzzbnk Transforming Finance Conference talk 10 May 2013

2. My own starting point

3. What is Crowd-Funding? Internet fundraising going beyond just giving A set target amount to create a specific outcome Within a specified time limit All or nothing (usually)

4. What is Crowd-Funding – continued Benefits in return – goods, product, opportunities, events, tributes, etc. Gift Aid is available if for a charitable purpose It can involve a financial return: a revenue share or interest on loans or an equity stake

5. The Crowd is as important as the Funding More than just money. Your crowd can give you ideas feedback advice skills things contacts and mobilise support from their friends Engaged supporters will be there for you now and in the future

6. Loans as well as Donations Principal only Fixed rate of interest Revenue share (also available for donations) Interest in kind A blend of these

7. Different reasons for giving support Personal support: mobilising support from people you know and in your networks who want to support you and the project you are developing. [The Mushroom Project] People looking for a bit of fun – accessing “Money can’t buy” returns. [Gateshead CAB] Sales in advance. [The HisBe supermarket] An ethical or social investor looking to put money into something worthwhile and seeking a financial or a social return. [Pants2Poverty and The Converging World] Outliers: Projects that can get publicity and catch the imagination. [Malala’s bouquet and the BP oil spill]

8. Crowdfunding transforming social finance Lending for good: Personal loans which underpin social loans Recycling support for socially enterprising projects Investing for good, sharing in the success Equity Quasi equity Saving for good: Allia Bonds Community savings funds

9. michael@buzzbnk.org www.buzzbnk.org