michael norton, buzzbnk - crowdfunding

Introduction to Crowdfunding, Buzzbnk and asking for money

Michael Norton,Chairman & Co-founder, Buzzbnk

Enlighten Digital Conference talk1 May 2013

My own starting point

What is Crowd-Funding?

• An internet platform, more than just giving

• A set target sum which is needed to create a specific outcome

• A specified time limit, with milestones along the way

• All or nothing

What is Crowd-Funding – continued• Build a crowd; engage the crowd

• Benefits in return – goods, product, opportunities, events, tributes, etc.

• Gift Aid is available

• A financial return: a revenue share or interest on loans or an equity stake

Loans as well as Donations

• Principal only

• Fixed rate of interest

• Revenue share (also available for donations)

• Interest in kind

• A blend of these

What Crowd-funding is not

• The money doesn’t magically appear: only if you ask for it, will it come

• Kickstarter, the most successful platform in the US for creative projects has a success rate of around 43%

• Only those projects which actively fundraise succeed.

• If you get it, you will get it!

… to strengthen the relationship with between the backer and the venture.

They share the journey and they share the benefits.

Its about more complex relationships with long term value: building engagement and reciprocity.

Crowdfunding is all about co-venturing and reciprocity

“I truly believe that crowd-funding is going to change the way good causes are supported and I am very proud that my book is among the first of the projects to be promoted by Buzzbnk.”

Martin Simon, CEO, Timebanking UK

“It’s such an exciting way to raise money. We wanted to create an active community of backers who would not only feel invested in our work, but also be rewarded for their contribution.”

Eugenie Teasley, Founder, Spark+Mettle

“At Buzzbnk we believe it is as important to build a crowd as it is to raise the money you

need, and so create a sustainable and successful future for your venture.”

The Crowd is as important as the

Funding• Engaged supporters

• Their advice, ideas, feedback, skills

• Donating things and more money. Ask when you need something; and ask again for money when you need it

• They will be there for you next time

Since launch, Buzzbnk has helped publish a book on the new economy of sharing, co--produce a feature film on child asylum seekers in the UK, help disadvantage youths launch a career, create a literacy centre with an unorthodox approach in Hackney, build wind turbines in India, provide working capital for a fair trade underwear enterprise, launch a blight-resistant potato and more…

The money will not magically appear• You have to ask

• Ask everyone everywhere

• Carry pledge cards and support materials wherever you go

• Do something daily

• Create time-bound challenges

Some ways of raising the money• Organise events

• Get others to help you: share the asking

• Speak out in public; develop an elevator pitch

• Understand what will motivate supporters, and design your appeal accordingly

• Use social media (but remember that “Facebook isn’t for Fundraising!”

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]

Is crowdfunding for you?• Think about what you want to do and whether it

can attract a crowd.• Explore your networks and think about whether

you can mobilise them to get behind you.• Think about what you can offer in return. And

whether you can make it attractive and exciting. • Think about the fundraising effort, and whether

you have the time, energy and inclination to do this.

• Consider the benefits of creating a crowd, and the ways in which this can help you build a successful and sustainable venture.

• Then go for it!

michael@buzzbnk.orgwww.buzzbnk.org