How should I prepare for Crowdfunding?

Kirsten Knipp @kirstenpetra

@bigcommerce UpSummit 2014

info.bigcommerce.com/UPSummit

Dream Big. Sell More.

#DreamBig

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Igniting ideas with financing from the masses

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60%

40%

More than half don’t make it … but 40% do!

Source: PCWorld

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Some that do, Crush It!

© 2013 Bigcommerce Pty. Ltd. Source: http://www.appsblogger.com/behind-kickstarter-crowdfunding-stats/

Reality = More Modest Success

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Is Crowdfunding right for your venture?

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It’s all about Marketing Build your Network

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Crowdfunding platforms – many choices

IndieGogo Kickstarter RocketHub Fundable

Launch Year 2008 2009 2010 2012

Total Funding Raised Unlisted, $600M+ 100K Projects Funded

$1.1B+ 60K+ Projects

Unlisted, 10,000 Projects Funded

$113M+ Avg Raise $175K

Types of Projects Creative, SMB & Charity Broad Guidelines & Limited Review

Creative & Product Concept Tight Guidelines (20% get rejected)

Creative, Fashion & Science Very few true Businesses

Startup Businesses Ready to Scale Full Time Entrepreneurs Extremely Flexible

Funding Partial Funding All or Nothing Partial Funding All or Nothing

Equity vs Reward Rewards (considering equity) Rewards Rewards (considering equity)

Equity or Rewards (Jobs Act First Mover)

Fee Structure 4% if hit goal 9% if don’t hit goal +3% Payment Fees

5% + 3% Amazon Payments Fee

4% if hit goal 8% if don’t hit goal +4% Payments Fee

Flat Rate $179/Month, Not a %

Success Rate ~34% ~43% Unknown Unknown

Additional Notes Largest Audience, Lends Credibility & Reach

A&E ‘Project Startup’ TV Partnership

Only accredited investors may fund equity plays until rest of Jobs Act passes Very tight guidelines – great for startups

Honorable Mentions: Kiva, Peerbackers, Prosper, CrowdCube, SomoLend (debt)

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Build momentum with a full campaign

Image Courtesy of RocketHub

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Prepare for the dip & drive momentum

Image Courtesy of RocketHub

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Plan, Prep, Launch: But don’t overthink it PREP:

Messaging & Prebuild Audience

Collateral & Influencers

Apply! Draft

Campaign

Launch! Buzzzzzz

Re-Invigorate Live Events

Home Stretch & Thanks!

T – 8 Weeks T – 4 Weeks T – 2 Weeks Day 0 Day 15 Day 30

You cannot prep enough! •  Define roles: DIY or

get help from PR firm

•  Vet concept with friends & strangers

•  Prepare & Refine Messaging

•  Review successful campaiigns

•  Define budgetary need & goal

•  Outsource Influencer List Building – LinkedIn

Soft Launch & Build Campaign Assets •  Get friends,

followers & influencers a sneak preview

•  Craft your video – get a professional to help! VIDEO!!!

•  Build out your rewards, funding rationale & fulfillment plan

•  Build your own website or landing page to link to (301 redirect)

Countdown! •  Prioritize your

email lists •  F&F Build

speed •  Tier 2

Influencers build credibility

•  Social proof lets you go after Tier 1 with personal touch

•  Draft emails •  Draft press release •  Identify Co-

marketing targets

Give yourself 24-48 full hours: •  Drop all your

emails, social, PR & blog content

•  Do personal outreach to Tier 1 influencers

•  Monitor earlybird rewards – top up before you max out for momentum

•  Have a kickoff party – Give $1 at the door to get momentum

•  Breathe …

Ensure you have a plan for the trough: •  Every campaign

has a lull in the middle – don’t be unprepared

•  Engage in co-marketing with other projects

•  Events, Round 2 Press or Updates & Contests work

•  Release new rewards for stretch goals

•  Compile buzz to date & share it broadly

•  Prep for the final peak

Revive yourself for the final push: •  Share updates on

your project page & social

•  Get ready to redirect all that traffic to your site post-event

•  Make any last minute edits – no changes after you hit fund date …

•  Celebrate!!! •  Get ready to

DELIVER … Reminder: If you don’t fund, You CAN try again …

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Resources help you plan – it’s all been done! Tools

•  CrowdMapped – Lists of Portals & Resources

•  Kicktraq – Trendlines & shares

•  Prefundia – Preview & Crowd Building Tool

•  LinkedIn, Mailchimp, All Social Sites

Books / e-Books

•  Fundable’s Guide to Equity Crowdsourcing

Great Blog Posts & More

•  Crowdfunding Radio Podcast

•  Tim Ferriss on $100K in 10 Days – A Few Useful Snippets (and some bunkJ)

•  Forbes on Kickstarter Prep

•  INC Infographic on Crowdfunding

•  3 Great Crowdfunding Infographics

•  HuffPo on Notable Crowdfunding Fails

•  Forbes on the ROI of Crowdfunding

•  Crowdfunding Stats - % Likelihood to be Funded

•  Crowdcrux Crowdfunding Site Comparison

•  Wikipedia list of history making successful projects

Download these tips on crowdfunding info.bigcommerce.com/UPSummit

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@kirstenpetra | @bigcommerce | @ringsafe