Cash From The Crowd_Table of Contents and Introduction

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Cash From The Crowd_Table of Contents and Introduction Powered By Docstoc
					             CONTENTS


      Acknowledgments . . . . . . . . . . . . . . . . . . . . . . vii
      Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
      Introduction . . . . . . . . . . . . . . . . . . . . . . . . . xi

chapter 1
   Crowdfunding Explained                                                                          1
     History and Overview . . . . . .       .   .   .   .   .   .   .   .   .   .   .   .   .   . 2
     Benefits Beyond Capital . . . .        .   .   .   .   .   .   .   .   .   .   .   .   .   . 5
     Convincing the Crowd . . . . .         .   .   .   .   .   .   .   .   .   .   .   .   .   . 8
     Your Crowdfunding Potential.           .   .   .   .   .   .   .   .   .   .   .   .   .   . 11

chapter 2
   Types of Crowdfunding                                                                          13
     Platform Models Defined . . . . . . . . . . . . . . .                                  .   . 13
     Who Should Consider Which Funding Approach?                                            .   . 16
     Sampling of Key Crowdfunding Websites . . . . .                                        .   . 20
     Choosing a Crowdfunding Platform Checklist . .                                         .   . 27




                                                                                                       iii
iv	                                                                                          cash	 from	 the	 crowd


         chapter 3
           Preparing a Successful Crowdfunding Campaign                                                    29
             Reviewing Guidelines and Projects . . . . . . . . . .                       . . . . . . . . . 29
             Gathering Your Crowd—Those You Know
               and Those You Don’t . . . . . . . . . . . . . . . . .                     .   .   .   .   .   .   .   .   .   30
             Building Your Campaign Elements . . . . . . . . .                           .   .   .   .   .   .   .   .   .   39
             Campaign Timeframe: Shorter Is Usually Better .                             .   .   .   .   .   .   .   .   .   48
             Video—Power in Your Pocket . . . . . . . . . . . . .                        .   .   .   .   .   .   .   .   .   50
             Video Tips from a Pro . . . . . . . . . . . . . . . . .                     .   .   .   .   .   .   .   .   .   51
             Are You Ready? A Pre-Launch Checklist . . . . . .                           .   .   .   .   .   .   .   .   .   63

         chapter 4
           The Art of the Ask (Campaign Launch)                                                                              65
             Driving Traffic to Your Project . . . . .       .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   69
             Real-World Gatherings . . . . . . . . . .       .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   73
             Overcoming Mid-Campaign Blues . . .             .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   74
             Re-Launching a Failed Campaign . . .            .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   76
             Your Campaign Launch Checklist . . .            .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   78

         chapter 5
           Keeping Your Backers Happy                                                                                        79
             Managing Donor Expectations . . . . . . .               .   .   .   .   .   .   .   .   .   .   .   .   .   .   79
             Reward Fulfillment . . . . . . . . . . . . . .          .   .   .   .   .   .   .   .   .   .   .   .   .   .   82
             Reward Manufacturing . . . . . . . . . . . .            .   .   .   .   .   .   .   .   .   .   .   .   .   .   82
             Tax Considerations: Don’t Forget the IRS                .   .   .   .   .   .   .   .   .   .   .   .   .   .   84
             Post-Campaign Checklist . . . . . . . . . .             .   .   .   .   .   .   .   .   .   .   .   .   .   .   87

         chapter 6
           Equity Offers—Share in the Fun(d)                                                                                 89
             First, the Facts . . . . . . . . . . . . . . . . . . . . . . . . .                      .   .   .   .   .   .   90
             Latest Developments . . . . . . . . . . . . . . . . . . . . .                           .   .   .   .   .   .   92
             How to Prepare. . . . . . . . . . . . . . . . . . . . . . . . .                         .   .   .   .   .   .   93
             Educational Resources for All Forms of Crowdfunding                                     .   .   .   .   .   .   98

         conclusion
           Reinventing Financing $100 at a Time                                                                              99


n     CONTENTS
cash	 from	 the	 crowd	                                                                                                         v



   appendix a
       Crowdfunding Toolkit                                                                                           101
         Social Media Management Tools . . . .           .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .101
         Idea Protection . . . . . . . . . . . . . . .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .102
         Campaign Promotion. . . . . . . . . . .         .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .102
         Backer Relationship Management . . .            .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .103
         Product Manufacturing Liaison . . . .           .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .103
         Post-Campaign Product Marketplaces.             .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .103

   appendix b
      Frequently Asked Questions                                                                                     105
        Can I run a campaign simultaneously on more than
          one crowdfunding platform? . . . . . . . . . . . . . . . . .                                   . . . .105
        Do I have to be a legal entity to post and raise funds? . . .                                    . . . .106
        Can I crowdfund if I want to keep my not-yet-
          patented product/invention confidential? . . . . . . . . .                                     . . . .106
        Why do crowdfunding sites screen the projects they post?                                         . . . .107
        Do platforms charge upfront fees in addition
          to the success fee on funds raised? . . . . . . . . . . . . . .                                . . . .107

      About the Author                                                                                               109




                                                                                                                     n   CONTENTS
    INTRODUCTION



I  f, like me, you don’t have an impressive list of investors
   at hand, this book is for you. Take heart in the fact that
while you may not know one person who can write you a
check for $5,000, I bet you know 100 people who, if you had
a good idea, would each give you $50. Raising money this
way—from many people in small increments—is the essence
of “crowdfunding.”
      Crowdfunding, where individuals appeal for
contributions from the public using an online platform,
is becoming a powerful way to fund new entrepreneurial
projects and ventures. Massolution, a research and advisory
firm specializing in crowdsourcing, reported that in 2012
crowdfunding platforms grew 81 percent and raised $2.7
billion; they are forecasted to bring in over $5.1 billion in
2013. Although this has the potential to be a tremendous
financial boon to entrepreneurs and innovators, on average
60 percent of all crowdfunding projects fail.


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xii	                                                                 cash	 from	 the	 crowd



              So what does it take to win the hearts and wallets of potential
          backers? By applying the advice and strategies in this book, you can
          properly prepare and communicate your project with passion, creativity,
          and the effectiveness required to fund your dream.
              Along with a brief introduction to what crowdfunding is and for
          whom it works best, this book offers tips, best practices, and resources
          for creating and running a successful crowdfunding campaign. The
          advice covered is segmented into “Pre-Campaign,” “Campaign Launch,”
          and “Post-Launch” sections and includes insights from successful
          and unsuccessful project owners. The book closes with an overview
          of the new laws currently being shaped that will soon allow for equity
          crowdfunding investment and includes helpful checklists, as well as
          links to examples of effective campaign videos.
              Even though this book focuses on entrepreneurial campaigns, the
          advice can be applied to any form of crowdfunding, whether for social
          causes, art and science efforts, educational endeavors, or any other ideas
          that need support.
              As John Allston once said, “The only thing you take with you when you’re
          gone is what you leave behind,” so . . . go build something!




n      INTRODUCTION

				
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posted:9/6/2013
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