Opening Up Enterprise Funding Through Technology

-Crowd Funding-

Sam Shafie

Co-Founder, pitchIN http://pitchin.my

What is Crowd Funding?

• An alternative method of raising finance for a business, project or idea.

• With crowd funding, an entrepreneur can attract a ‘crowd’ of people – by contributing towards an online funding target.

Types

Rewards or Equity or Donation

How has crowd funding worked in other parts of the world, to

help SMEs & entrepreneurs raise money?

Kickstarter (as from 2009)

pitchIN (as from 2012)

Projects Launched 72,108 15

Successful Projects 30,097 3

Total Dollars Pledged

368 million 17,815

Successful Dollars 311 million 8,305

Unsuccessful Dollars 38 million 9,301

Is Crowd Funding a Viable Option?

• Democratic

• Rather than pitching to one or two angels/VC, you’re instantly pitching to the world.

• People are motivated to be part of a community.

• Validation

• Develop a fan/customer base very early on.

• Clear process

• Instant results

How Does Crowd Funding Work

• Idea or project is pitched to the public

• Choose a duration (30-45-60 days),

• “All or nothing” for commercial/creative projects

• “All” for community projects

• Successful project(s) get money after fees are deducted

Categories/Channels

Arts & Design

Community

Film & Video

Games

Music

Photography

Publishing

Technology

How Does One Inspire The Crowd?

Have a great idea to start a project.

Be creative, passionate and clear.

Articulate, inspire and engage.

Reward your potential supporters

Will My Idea Be Copied?

• There is always a risk of copyright infringement when you release your concept into a public domain.

• It’s all about execution.

What Are The Key Criteria To Have, To Be SUCCESSFUL In

Crowd Funding?

• Tell a compelling story

• Paint a picture of what it might be, document, tell a story. Let others know.

• Get people to know your project/business.

• Spend some time to do a high quality video.

• Do the legwork before you launch

• The crowd funding campaign should be your

last push.

• Write a project blog, open Twitter and Facebook accounts and create teaser videos.

• Do as much as you can to get your message out there and keep on updating people. Build momentum.

• Hit the ground running

• Some projects try to crowd fund far too soon, with little or no build up.

• People’s opinion of any project will be based at least in part by how well it’s been received by others, so if a lot of time has gone by with little or no money raised, then it will be seen as a vote of no confidence.

• Know your customer

• Get covered. Getting mentioned on the right press can have a far bigger impact.

• Focus efforts to reach the people who are most likely to back your project.

• Set goals

• Set a meaningful and realistic funding goal, set it too high and you may never reach it – set it too low and you won’t create enough excitement or benefit that much once funded.

• Be prepared to work hard

• Not a shortcut to success, nor an easy ride – it takes hard work. It’s not magic.

• Be prepared to keep promoting the project to all your contacts, on your social media accounts and in the media too.

• Be open, honest and realistic

• People will want to know a lot about you and your business.

• Unless you have a pre-existing reputation as a successful entrepreneur, you must expect people to want to know more about you and your story.

• It’s important to remember that in many cases your backers will help out by providing their time or expertise – let them know how they can help.

• It’s not all about the money

• Crowd funding can be a great way to fund a start-up, but it’s all the other benefits that really make it an exciting prospect for your project.

• A successful crowd funding campaign will generate far more than just money.

Summary

• Crowd Funding is a viable option for entrepreneurs to raise funds.

• A great source for validation.

• Little risks.

• Success is not guaranteed but entrepreneurs will definitely learn.

don’t forget to pitchIN!

• Facebook: facebook.com/pitchIN.my

• Twitter: twitter.com/pitchIN_my

• Web: http://pitchin.my

• Email: pitch@pitchin.my

• Create a project: http://pitchin.my/create

• Or download at http://db.tt/DBpnj2qt