Crowdfunding Now!

As the New York Times reported, "Syrian refugees continue to flee the violence at home, President Obama is turning to the modern tools of Silicon Valley entrepreneurship as a supplement to the more traditional means of humanitarian relief. At the request of officials from the White House Office of Digital Strategy, the crowdfunding website Kickstarter has begun its first social service campaign aimed at raising money for the United Nations refugee agency on behalf of Syrian refugees."  Here is my 10/7 talk on NPR's Press Play with Madeleine Brand:  http://www.kcrw.com/news-culture/shows/press-play-with-madeleine-brand   How effective is this? They raised $700,000 in six hours. Six hours. For more, visit the links below.  http://www.nytimes.com/2015/10/07/world/middleeast/obama-turns-to-crowdfunding-to-aid-fleeing-syrians.html?_r=0 http://qz.com/519438/kickstarter-just-crowdsourced-a-million-dollars-for-syrian-refugees/ http://www.huffingtonpost.com/entry/kic...

We posted an article with the title "How to Crowdfund" in 2012. Given all that has happened in the interim I thought we would update it. This data is from  our Online Class on How to Crowdfund -  https://www.udemy.com/how-to-crowdfund/ (Video preview :  https://youtu.be/nL5svW7pN7w ) As I noted in 2012, crowdfunding , getting investments and donations from individuals via the internet,  has taken off, giving individuals who have, until now,  been shut  out of funding markets access to much needed cash. It will especially help socially responsible individuals and those seeking to fund socially responsible projects. These are exactly the types of projects that have had an extraordinarily difficult time raising capital in the current economic downturn.  In my book on  crowdfunding  ( The JOBS Act: Crowdfunding for Small Businesses and Startups , published by Apress) I discuss how to raise ...

"How To Crowdfund" on Udemy: https://www.udemy.com/how-to-crowdfund/ Course Contents: What is Crowdfunding? The JOBS Act's definition of " crowdfunding ," “ crowdfunding platforms," and “emerging growth companies" How to get up to $1 million through crowdfunding The risks and rewards of taking advantage of crowdfunding Intellectual property protection Choosing a crowdfunding platform SEC Title IV Regulation A - how does this work? Indiegogo vs Kickstarter State-level crowdfunding How to stay on the right side of the law when soliciting funds How to identify and deal with reliable crowdfunding platforms and companies How businesses owned by women and minorities can raise new capital, as well as those now shut out of the capital markets (restaurants, day-care centers and others ignored by finicky venture capitalists and skittish bankers) How investors can identify opportunities, avoid fraud, perform due diligence, and then make an int...

We have been researching this issue for some time now, and I thought I would outline what we have learned so far. This is ever changing, so stay tuned. A. EAS (Early Adapter Syndrome). There is a guy in my office building who is a crowdfunding junkie. Daily, he tells me about the latest gadget he just bought on Indiegogo or Kickstarter. He MUST be the first to own the latest toy. Here's the thing: he has grown quite knowledgeable about both technology and about selecting tech products. His success ratio has grown to near 100% now. He can spot a troubled product or crowdfunding campaign a mile away. Not a bad skill to have, actually. B. Love. People donate to products, causes and events they feel excited about. They LOVE what you, the crowdfunder, is doing. Now, part of the issue is making sure that love comes through. If there is a disconnect, people will not know that they love what you are doing. C. Community. It speaks to the community, whatever community that is. It can ...

In the crowdfunding world, there has been much talk about potato salad, but not the delectable summertime dish. We're talking about a Kickstarter campaign that, so far, has raised over $46,000 with a $10 goal. Upon first hearing of this, one would assume there is some catch, that maybe the goal had something to do with a great social concern that potato salad could help fix, maybe hunger among six year olds.... Nope. Zack Danger Brown simply wants to make potato salad. I'm sure not even he thought that his campaign would garner so much support and notoriety. The campaign has spawned several copy-cats and off-shoots: "Potato Salad" by Philip "Call me Fredo" Morganelli and "Macaroni Salad - Yum!". The overwhelming success of this campaign should serve as a wake up for several reasons. Firstly, the goal was overly simplistic. There was no elaborate reasoning or even a video. Secondly, there was no product to promote or great social benefit. S...

The chart below results from an analysis of the Top 50 crowdfunding campaigns on Indiegogo, 'Top' measured by total dollars raised. The X axis shows the dollar amount of the reward or  perk ($1 to $10, $11 to $20, etc.) The Y axis shows the cumulative number of rewards/perks collected across all 50 campaigns, so the chart shows that, for the top 50 crowdfunding campaigns on Indiegogo, 100,000 rewards/perks with a  value ranging from $1 dollar to $10 dollars were selected by supporters.  Normally, we might expect this chart to be convex, declining steadily from $1 to $5000. This is not what we see, however. It seems that people are willing to donate small dollar amounts, up to about $50, and then contributors look to donate at least $100. What's going on here? To explain this phenomenon, classify backers into two categories: 1. The first category are people who simply want to help. They donate less than $50 dollars and do not donate for the reward (normally a T-shi...

Total raised on Kickstarter: $1,149,549,280 Number of successful campaigns: 63,052 Average dollar amt: $18,231.77 Total raised on Kickstarter: $1,149,549,280 Number of supporters: 6,329,762 Average amt per supporter: $181.61 Total raised on Kickstarter: $1,149,549,280 Number of pledges: 15,626,785 Average amt per pledge: $73.56

"three basic issues that should be addressed before launching a (product-based crowdfunding) campaign: Cost.  Before anything else, you need to determine what the true costs of the product are in terms of materials, labor, and ancillary production expenses? 'You can’t begin to set realistic margins until you have that completely nailed down,' he says. Quality.  In this case, 'quality' doesn’t necessarily mean reaching for the highest possible standard, with all other considerations secondary; that’s the path to bankruptcy, notes Miller. 'You have to match customer expectations and product costs to your quality benchmark,' he says. 'You need the right balance. If the quality is too low relative to your price point, you’ll either never get off the ground or your customers will ebb away. If the quality is too high per the price, you can lose so much money you go out of business.' Scheduling.  You have to deliver products when they’re expected. ...

From Kickstarter: " On Wednesday   night, law enforcement officials contacted Kickstarter and alerted us that hackers had sought and gained unauthorized access to some of our customers' data. Upon learning this, we immediately closed the security breach and began strengthening security measures throughout the Kickstarter system. No  credit card data of any kind was accessed by hackers. There is  no  evidence of unauthorized activity of any kind on your account. While no credit card data was accessed, some information about our customers was. Accessed information included usernames , email addresses, mailing addresses, phone numbers, and encrypted passwords. Actual passwords were not revealed, however it is possible for a malicious person with enough computing power to guess and crack an encrypted password, particularly a weak or obvious one. As a precaution, we strongly recommend that you change the password of your Kickstarter account, and other acco...

Cover of Illmatic (Aniv) We note with interest the crowdfunding campaign by Nas , (formal name: Nasir bin Olu Dara Jones.) According to Wikipedia, "his debut album Illmatic , released in 1994, received universal acclaim from both critics and the hip hop community. It is frequently ranked as..the greatest hip hop album of all time.." His crowdfunding campaign is unique, actually brilliant. No other celebrity of his stature has launched a crowdfunding campaign that has been as personal and targeted. Rather than focusing on a record, a product or a film (in contrast to, say, Spike Lee or Zach Braff) or self aggrandisement, Nas chose to focus on the needs of a single human family. Outstanding. THIS is what crowdfunding can do and may be the template for future crowdfunding campaigns by similarly situated performers. Related articles How To Crowdfund: 5 Crowdfunding Tips Not Your Mom's Fundraiser: Crowdfunding Is Nothing Like Fundraising Crowdfunding's G...

With crowdfunding gaining traction, I thought I would revisit and update our crowdfunding tips. 1. Review other crowdfunding campaigns for best practices As one blogger noted, "Before you start your crowdfunding campaign,  study others who have done it well." There will be many  examples of how to do crowdfunding right. Watch our Twitter feed (@Blackcrowdfund)  2. Hustle Develop a " strategic approach." Who are you trying to get support from? Why would they support you? What are the long term benefits to your supporters? Are you going to hit them up again? How many times?  Create a m edia list. Get "ambassadors," people who will speak on your behalf. "Plan ahead  as much as possible. This means contacting your supporters before you  launch to firm up their promotion and participation, and also  developing a thorough marketing plan." Above all, get going! 3. Adapt quickly As one crowdfunder put it, things may not go as planned. You wi...

From Indiegogo: "Congratulations on launching your campaign!  Now it's time to start raising money! Start sharing your campaign Tell people that your campaign has launched...  Reach out to your closest friends and family to ask for their support. Aim to raise 25% of funds from this inner circle. This will help your campaign reach a tipping point. Increase your (campaign activity) and get featured The most active campaigns are featured on our homepage, newsletter and blog. Campaign activity is measured by...several metrics, such as funds raised, comments, updates, campaign media, referrals, and more. Keep your audience updated It takes 7 contacts with someone before they will take action. Don't be afraid to keep reaching out to your community to ask for their support. Post Updates throughout your campaign to increase your funding.  Campaigns that post Updates every 1 – 5 days raise twice as much money as those that don't ." All good ideas... ...

Crowdfunding News 4/27/13 Synergist Founder Hopes To Raise $25K Using The Company's Own ... TechCrunch Sites like Kickstarter have been used to crowdfund a wide range of projects, but I don't think they've ever done what Synergist is attempting today — they've never crowdfunded themselves. The site was founded by 17-year-old Jared Kleinert, who ... See all stories on this topic » Bill Clinton Touts Potential of Crowdfunding at Creativity Conference Variety WASHINGTON — Speaking at an MPAA , Microsoft and Time event called the Creativity Conference Friday, former President Bill Clinton talked up crowdfunding as a potentially important avenue for filmmakers and others to "make more messages that we ... See all stories on this topic » Tips from a 22 Year-Old Crowdfunding Veteran [Part I] - Crowdsourcing.org Crowdsourcing.org At age 22, Anthony Ng Monica has already completed two successful crowdfunding campaigns to fund his startup,...

At Blackcrowdfunding.net , we support  "The White House Champions of Change program highlights the stories and examples of citizens across the country who are " Winning the Future " with projects and initiatives that move their communities forward. This May, the White House Office of Public Engagement will host a Champions of Change event for entrepreneurs who exemplify the promise of crowdfunding to fuel the growth of startups and small businesses across the Nation. "Crowdfunding" means raising money in small increments from many individuals, typically using an Internet platform. Donation-based crowdfunding is already empowering many entrepreneurs, while investment-based crowdfunding platforms will soon be facilitated by the bipartisan Jumpstart Our Business Startups (JOBS) Act, which the President signed one year ago and the SEC will implement. We are asking for your help to identify crowdfunding entrepreneurs who may be "Champio...