crowding in

7/30/2019 Crowding In

1/15

1 Crowding in

How tHe UKs bUsinesses, cHarities,government, and inancial system

can maKe tHe most o crowdUnding

decembe 2012

Pee Baeck, Lam Clls a Sa weslake

crowding in


2/15

2

Ab nesa

n h UK u. w hp pp . w h p h,k k.

w p h u k hn l.

n op cp h e w h p u 7706036 h u

1144091. r h s u sc042833. r : 1 Puh P, l, ec4a 1de

.esa..k

nesa 2012.
http://documents/NESTA/Crowding%20In/ac/Users/mikegreen/Library/Caches/Adobe%20InDesign/Version%207.0/en_GB/InDesign%20ClipboardScrap1.pdfhttp://documents/NESTA/Crowding%20In/ac/Users/mikegreen/Library/Caches/Adobe%20InDesign/Version%207.0/en_GB/InDesign%20ClipboardScrap1.pdf


3/15

3

introduCtion

C s es . Plams lke Kcksae, Peple., Bzzbk,

Zpa, F Ccle a Ccbe ae all sas als ecl

pecs, bsesses a cases.

i 2011, u $1.5 , h Us, pj,

up u pj,

h. th UK u k , u . w xp h h

u 2012 UK u p u h 120 h 2011.

bu h h h. i p h h h , u u

p u 15 p h UK. wh h h k , h u uh, u h u

p pp h 115 u.

cu pj, u huh

u u u, h h u . th

u huh huh p h h huh

k, h k xh. i , uu k

p, uh Kk Zp, h pp u pj

. Pp k pp , u h pp

pu k.1

cu . Pu up u u h h

su l, qu h i u u p u

u h .

wh h uh u k h h

h h . th i k

p u h pp k u. a k p u

h p k h pj. Pp k

u pp h , k h

u h pp u . U h w,

p 10,000 pp nk t up

pp 7,793 ph l.

1. s u p--p . h pup h p, h u.


4/15

4 Crowding in

wh h , h uh h u k p.

a h h u h p: h, uu

, h u k u, hp h

p . Kk, Zp, Ppu., buzzk, cu, s u

c xp p.

s , h h p. th p h k

h h u pj u h h h p u

, k, h pu p.

B s eas

cu p pp h k

h p h p . i

, h, p h . th h p

p u h h h h

p . th h u p p u

.

i h pu, p h h h h j u

h h p k h p u h

p. ahuh u u u p

h u k h h pph

h u.

A mbe mels pea a ae secs

te se se c as see e emeece seeal ee aees.

te e pmal a e e es a a e epec m pecs.

Sme ae clse caable es epec ecee a am l ae a

a cas m e esme. oes e es a sl cmmecal e, smecases bee a e e aalable m maseam facal ss. A

beee e , ee ae ma aaemes a e es a me e

pes beefs. F e sake smplc, e ca be caees:

Fm cb Fm e Ma e

da d i . i

C .

rea d/ r u c C Ppuh .

.

Ce l rp h c ,Le . s

. .

Eq i ru c ,C h u .

r .. i h

.


5/15

5 Crowding in

2

SCREENING

3

PITCH GOES LIVE

Project

idea

Fundinggoal

Funding

deadline

Return andrewards

5

PROJECT DEVELOPMENT

4

PUBLIC PLEDGE

MONEY

1

PITCH

Platform

The public

Funders

Return and

rewards

Waiting,

engagedaudience

Funding

windowopens

Fundingdeadline

Entrepreneur

Entrepreneur

Project

gets themoney*

OR End of

project*

Fundingreturned*There are two main models.With allornothing the

project only gets the money

pledged if they reach their

target on time. The keep it all

model lets the project keep any

money pledged by the

deadline, even if the target is

not reached.

38%

FUNDING GOAL

100%

thE CrowdFunding ProCESS


6/15

6 Crowding in

SoME ExAMPLES oFuK PLAtForMS ExPLoringCrowdFunding PotEntiAL

Bzzbk: sp u u. th h

u pp h hk u h phhp p,

u h p upp p

pj h u. buzzk h p fx

u k u u u

pp.

Sla Scls: i h p h hp h u p. i

h huh u p h p

u . sh pp p h p h upp u h h . th pj p

h 2011 u u xp k uh

u h UK.

Sees:i UK qu u p h k h

up. th h k p pp

10 up ( qu

10,000 p ).

FCcle: i pp p hh u u h k h pp u h k . s uh 2010, 61 h u u .

Ccbe: i UK qu u p h

u up k up, 10 u h

h h uu h u.

Peple.: i UK p h hp uh h u.

Ppu. u h u p

uk h p, u k . i

u h h r c upp tv p Huh

wh, hh h h p u

pp pj h u u. th p

h k puh p Uu p wdth.


7/15

7 Crowding in

whAt doES CrowdFundingoFFEr?

te ea pmse c s a es sme aaaes a e ms

fac . ts meas a me le pecs a bsesses e e

a l ese , a peple lk es ae e me ae

me cces ab . i a l c facal a as cme be

asscae ee a skle, s a elcme cae.

i pu, u u . i h pp

pu hh u hp h u u. i

h h h. b p

u u, hp k h upp pu. a h pu h u. l h u.

TRADITIONAL FUNDING

Large amounts from one,

or a few, sources

CROWDFUNDING

Many small sums from

a large group of individuals

hArnESSing PEoPLES MotivAtionS to gEt worthwhiLE

ProjECtS FundEd

te ec cec beee eepee a e c es peple e cace

a me pesalse pc, a e eepees e cace appeal

ess mas a eess as ell as e alles.

Everyone should be able to buy food thats good for you and that is not detrimental to the

environment either.th h euh h h

up th n l cp euh 2012. t h up

h u u p buzzk hp p h h

u h h h . th u 3,340

h u uh u uh h hp

.


8/15

8 Crowding in

g h h j pp h hp h h

hp u , h u u

u h . bk hp uu h h hp

p p up. i u h p k hp h

u k u .

te ce sae pla

i ma cases ee s a scec a ess beee e es s a seces

a e csmes eses.

cu h p fu h pu

h .

epu h p h h

h h u .

th u upp h u u .

h c ca a ale

Me me aable ems: cu u h ppu

u h h h k u pj u

u. th u p u

h u p u

k . i , h h ph k

u u pj k up u u

p hp. wh h h h h pj h h (uh u

), h h h w k p

u u pj .

ge a bee pc b ea e eepee: cu

u hp fu h h pu. e

upp hp h k php h h

pu h k k h p uu.

ge me a me: wh h x u u,

h h u h

u h . th h

k, k h pj h h p k.

LowEr trAnSACtion CoStS

B ess me a le ca e lece, a ama me

e pcess, c ca ece e asac css e capal

eepees, mak fac ceape.

e u su d h u k u

p u c, h u

u h h h. su d

h 12,000 53 u 8.4 p . th

guh u h uh k u 12 p

qu h qu h u c.


9/15

9 Crowding in

te ce sae pla

Fac bsesses a pecs emeaes les a mbe css:

s qu pp , uk u , p p.

bk u h .th xp pu pp u.

h c ca a ale

C cse les css . B b e es le e e

lece pcess a ac as a plam, as a pcpal, ese css ca be le

a se aal face pes aes.

cu p h h f u 5 p

h uu.s k hp h h ph p

k.

dEMoCrAtiSing Funding

C s a pel a e a peple a csme, a a

pecs e a see aea.

th pp h p u h u. wh

u pu, uu u u h h

k pu. wh h u, h h u ppu u h h u

u.

te Albas kk h . Uk

h h k u u u . wh php

h pu h h p h u

. i 2012 l pu o lh h

h u k p pu pu.

tu h , h uh $3,000 u i.a h p h pu 2,000

k p h kk u u

$44,596.

te ce sae pla

we ele e mpe pcs seces e pblc e ms mpa

pece ma s ee ee s ema a s be elee. hee, e

accae measeme ema s fcl, e :

u h h k h p p

u.

du uh

p.


10/15

10 Crowding in

h c ca a ale

C ca elp bee mee ema a ece asel esme b:

mu p . th h

p h j p u h h pj h hu upp u.

tp p p h

pu p h pj.

th fx u h h h

h x. th h huh h h u x

u h u , h u p.

FroM MASS ProduCtion to PErSonAL ProduCtion

C elps bsesses see a me ese a pesalse make, b backa ese l al e e.

te ce sae pla

Eepees e sle access m b pblc a pae

es, as ese e peae cea a e base :

H upp h u h u.

l h p h h u pu .

m h j huh h pph.

h c ca a ale

tee ae ee as c ca be see as aess ese callees.

Spas acss aal sec a e baes. m u p

h p pj h p

u. th h h h

u .

g b small cce. cu p p

h h uh huh h p.

ol ees e ema, ls ema. c k p

k u.

mh u es u $384,000 10,000 Kk u k h n md, app mk pp pu. th pu u h h h mbk h ph p up h u ( u h p) u hh pu h h mbk. i hu k u k h h h h m, h up h h n md hh h h h fuh h h h m.

o k h p ppuh h u, h h h $11,000 h h.


11/15

11 Crowding in

nEw FrontiErS ForCrowdFunding

tese aaaes pe a ae e pssbles c. A e

mme, s a ce a small e bsesses, cl pecs caable

eaks. B cl be mc me.

th p u uh p h k u

. m k u c, mk i cu hh

, p h h p u k

u h xpu.

hk u h u uu u phhp u xp u

h h u , u u p

h u p.

th pph p h pu . th

p pu p h k

h p, u u p

u. cu p h. cu pp h

g h u u

u p, u huh u p, php h

pp h u? wh u u p u

n l ?

cu p h u. Pp

p k Zp, u c mk i

h k.

, u u k p u

u p, h k

p. i, h p,

u p uu, u

h k u pu h

h .


12/15

12 Crowding in

whAt nEEdS to hAPPEn ForCrowdFunding to thrivE?

C as e pe cae a le ae fels, m bsess

face caable . B e sl ael assme ll asm e

l e. iee, c s acee s peal, ee ae a e ke

callees cse.

Es eqal

wh x u pu u, u

p h, h p . o h h, u h h z

pu. o h h h, h h p

. th k h h h , , u

h p u u p up.

th h h u h u u h

pu : k pp, u k h

k u pp h u u h h

uk k u h u h. a h p, u pp

h u h k p hp p h u,

wee ll e c plams be base?

i u , h p h p

. a p qu UK pk, h, h h

p ? th u x u h h UK h u

u h p p: p

h UK, xp, u u ,

hh u pu pp u u. i u k

u UK p h, u h UK . o

p h h UK g k h h h

UK p : h h u, u .

rsk a ela

a u h h p, k h qu

h p. th pu u qu u h

uph k k u p

h xp k u. bu h , h g

hu u h k hh u k f

p. o h h, h u u u k

pp u u h pu p

. i d, n h u

u u x h h h h h .


13/15

13 Crowding in

Maa cmmes

th i h p u h . bu h

xp u p h n h k h

h p u u u qu . th h

, h kp h u hpp k h j h .

Saas a aa

a pu p h u h pu u x, h

h p: hp h u k h

h hp u fuh.

th k h. a H, bk e

xu, u h h h pu uhp k pp k. Ju U Pu c

() upk upk u h ,

H u h h h pu u pp

h h uh k h h p

k.

th u u. m pp p u

hp h pu h . d

h h, p u h

uu u hh k k p : u uh du

p ph pu u . th g

p h u h u u pu u u h h u u.


14/15

14 Crowding in

thE SiZE oF thECrowdFunding oPPortunity

i e c s e uK a e geme ca eecel aess ese

callees, s ell pse ap .

ahuh u , p h 100 p h UK,

h h p xp u . w p

xp h x h u . th, h up

14.5 .

blls, pe ea

Sze seme Aessable b vale

c

a u u 3.0 20% 0.6

s u 4.6 10% 0.5

oh pu p* 5.0 20% 1.0

bu 74.9 10% 7.5

rk p u 2.1 10% 0.2

ch 9.3 50% 4.7

tal 14.5

*iu p l u, dclg h g p h p u.


15/15

Nesta

1 Puh Pl ec4a 1de

[email protected]../_uk.k./.uk

www.nesta.org.uk

Nesta.

December 2012

n op cp h e w h p u 7706036 h u1144091. r h s u sc042833. r : 1 Puh P, l, ec4a 1de

crowding in

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