Tech Crowdz

Using Social Media to Crowdfund

Editor — Sun, 10 Feb 2013 13:51:04 +0000

You need to seriously consider using as many social media and online tools as you can to reach people you know and want to know. I am going to go through the list (Readers: Please add to the list in comments below).

Your website. Many people are not on Facebook and don’t want to be. You should start by having at least a one page website if you starting a pledge project and a sophisticated site if you are involved in equity crowdfunding. Use the site for linking from email contacts who are not on Facebook. It’s also very handy to link to from your crowdfunding project for the detailed pages and photos some contributors may require. If you are engaged in equity crowdfunding you should not outright solicit funding in exchange for shares on your site (seek legal advice).

Facebook. You will have already built up a following of a couple of hundred friends. You need to use all the Facebook tools to enlarge your audience. Post regularly with updates about your project or startup. You will find tons of information online about how to effectively use Facebook. Think about competitions and Facebook advertising too. A very useful Facebook Guide Book by Mashable is linked below.

Google+. You might find that many people you know are on Google+. If you are not then it’s worth considering. Advocates of Google+ especially like the video chat features. You can download a ‘How to Use Google+’ ebook from Hubspot- link below.

LinkedIn is another good social media site focused on business contacts. You can join up to 50 groups, create your own and invite contacts. As a business startup you need to be on LinkedIn and you need to be in relevant groups. Create your profile and learn how to post discussions with links to your crowdfunding project. Link to my LinkedIn group ‘Crowdfunding Projects’ and many other crowdfunding groups. Learn about the rules. Check out the ‘Beginners Link to LinkedIn’ Mashable article link below.

Many of you use Twitter already. This ultra popular micro-blogging platform reaches all your friends. It also reaches interested journalists. Masses of things to do with Twitter. Again I refer to a Mashable document ‘Twitter Guide Book’, link below.

That’s just the beginning. Let’s talk about blogs. There are over 160 million blogs. The challenge is to find blogs dealing with your subject and give them something worthwhile printing. Let’s start with the latter. Write an article, get in some help if needed. Tell them about the problem you are solving with the delightful product you are creating. In the article link to your web site and your crowdfunding campaign. Bloggers need content and may choose to post your article. Another Mashable document is available ’10 Ways to Find Blogs’, link below. Oh, you have a blog! Very good, post it first on your own blog! Google will pick you up as the first article posted on the subject.

Now that you have written an article you should post it to article submission sites. I have added two more important links below to help you submit articles.

Next. let’s touch on videos. YouTube is a must. You should first post that cracking video clip you created for your crowdfunding venture. YouTube offers much more. Below is a Gigaom article on ’34 Ways to Use YouTube’. Why spoil it. Click the link below. However, now that you have the video clip why not submit it to some of the more than 300 video sharing sites online, including Yahoo Video, link below.

Picture sites like Flickr do for photos what YouTube does for video. In fact some of them crossover and are on the same list as above. Photos become slides become videos. Other photo sites are Picasa, Photobucket and Zooomr. Check out the slide presentation websites on the Scribd link below. Remember, these sites feature in image searches both internally and on search engines. Images generally improve search engine ratings/ SEO.

Social bookmarks can be very effective. Top names include Digg, Delicious (Yahoo owned), Google Bookmarks, Pinterest, Reddit, Slashdot, StumbleUpon, Technorati, Tumblr and Yahoo Buzz. The must read article linked below is ’101 Top Social Bookmarks’. The best use of social bookmarking sites is to link back to your blog or funding post. For instance, on Tech Fundz .com you can submit below this post to the above sites. Depending on the site your link is then viewed and clicked by others. Since the world’s biggest search engines are involved you are likely to get SE traction too.

Podcasts have a big following on sites like iTunes. It’s a social networking tool that is overlooked by most of us. However it is extremely useful for persons building a tribe of followers. Podcasts are best suited to people who have something to say, regularly. Using your voice to describe your product or startup is a good way to hone your marketing skills. Many effective podcasts feature conversations between partners. Of course, you gently remind everyone that this is the last chance they may get of supporting your fantastic business opportunity. Check out the podcasting link below.

Online Advertising. This is a subject that is as big as your wallet. It is sensible to decide on an online advertising budget, no matter how small. I have had good results advertising on Google and Facebook. Be sure to set limits on your daily spend so that you don’t run into trouble.

Some general tips. Engage your partners and friends to assist. Work for hours and hours. Prepare for ages before you start your campaign by building your networks. Take every link offered. Write until your fingers ache.

Good Luck!

Links:

Using Social Media to Crowdfund: Social networking is the act by which we engage online. Social Media are the tools by which we engage. Facebook, Twitter, Google+, LinkedIn and YouTube are the most well known social media tools. The list is vast and includes all social blogs, picture sites, video sites, microblogging platforms, social bookmarking, internet forums, blogs and podcasts. You need to seriously consider using as many social media and online tools as you can to reach people you know and want to know. I am going to go through the list (Readers: Please add to the list in comments below). Your website. Many people are not on Facebook and don't want to be. You should start by having at least a one page website if you starting a pledge project and a sophisticated site if you are involved in equity crowdfunding. Use the site for linking from email contacts who are not on Facebook. It's also very handy to link to from your crowdfunding project for the detailed pages and photos some contributors may require. If you are engaged in equity crowdfunding you should not outright solicit funding in exchange for shares on your site (seek legal advice). Facebook. You will have already built up a following of a couple of hundred friends. You need to use all the Facebook tools to enlarge your audience. Post regularly with updates about your project or startup. You will find tons of information online about how to effectively use Facebook. Think about competitions and Facebook advertising too. A very useful Facebook Guide Book by Mashable is linked below. Google+. You might find that many people you know are on Google+. If you are not then it's worth considering. Advocates of Google+ especially like the video chat features. You can download a 'How to Use Google+' ebook from Hubspot- link below. LinkedIn is another good social media site focused on business contacts. You can join up to 50 groups, create your own and invite contacts. As a business startup you need to be on LinkedIn and you need to be in relevant groups. Create your profile and learn how to post discussions with links to your crowdfunding project. Link to my LinkedIn group 'Crowdfunding Projects' and many other crowdfunding groups. Learn about the rules. Check out the 'Beginners Link to LinkedIn' Mashable article link below. Many of you use Twitter already. This ultra popular micro-blogging platform reaches all your friends. It also reaches interested journalists. Masses of things to do with Twitter. Again I refer to a Mashable document 'Twitter Guide Book', link below. That's just the beginning. Let's talk about blogs. There are over 160 million blogs. The challenge is to find blogs dealing with your subject and give them something worthwhile printing. Let's start with the latter. Write an article, get in some help if needed. Tell them about the problem you are solving with the delightful product you are creating. In the article link to your web site and your crowdfunding campaign. Bloggers need content and may choose to post your article. Another Mashable document is available '10 Ways to Find Blogs', link below. Oh, you have a blog! Very good, post it first on your own blog! Google will pick you up as the first article posted on the subject. Now that you have written an article you should post it to article submission sites. I have added two more important links below to help you submit articles. Next. let's touch on videos. YouTube is a must. You should first post that cracking video clip you created for your crowdfunding venture. YouTube offers much more. Below is a Gigaom article on '34 Ways to Use YouTube'. Why spoil it. Click the link below. However, now that you have the video clip why not submit it to some of the more than 300 video sharing sites online, including Yahoo Video, link below. Picture sites like Flickr do for photos what YouTube does for video. In fact some of them crossover and are on the same list as above. Photos become slides become videos. Other photo sites are Picasa, Photobucket and Zooomr. Check out the slide presentation websites on the Scribd link below. Remember, these sites feature in image searches both internally and on search engines. Images generally improve search engine ratings/ SEO. Social bookmarks can be very effective. Top names include Digg, Delicious (Yahoo owned), Google Bookmarks, Pinterest, Reddit, Slashdot, StumbleUpon, Technorati, Tumblr and Yahoo Buzz. The must read article linked below is '101 Top Social Bookmarks'. The best use of social bookmarking sites is to link back to your blog or funding post. For instance, on Tech Fundz .com you can submit below this post to the above sites. Depending on the site your link is then viewed and clicked by others. Since the world's biggest search engines are involved you are likely to get SE traction too. Podcasts have a big following on sites like iTunes. It's a social networking tool that is overlooked by most of us. However it is extremely useful for persons building a tribe of followers. Podcasts are best suited to people who have something to say, regularly. Using your voice to describe your product or startup is a good way to hone your marketing skills. Many effective podcasts feature conversations between partners. Of course, you gently remind everyone that this is the last chance they may get of supporting your fantastic business opportunity. Check out the podcasting link below. Online Advertising. This is a subject that is as big as your wallet. It is sensible to decide on an online advertising budget, no matter how small. I have had good results advertising on Google and Facebook. Be sure to set limits on your daily spend so that you don't run into trouble. Some general tips. Engage your partners and friends to assist. Work for hours and hours. Prepare for ages before you start your campaign by building your networks. Take every link offered. Write until your fingers ache. Good Luck! Links:

Crowdfunding with Friends and Family

Editor — Sat, 09 Feb 2013 12:32:05 +0000

With crowdfunding you will still need to rely on family and friends for the initial investment. Friends and family feature prominently in almost all successful crowdfunding ventures. Using social networking your family and friends will be the start of any potential build-up or viral communication announcing your project or startup. The difference is that you are not going to them for a large amount. Each member of the your ‘tribe’ can invest the amount they feel comfortable with. Due to the nature of crowdfunding featuring a larger number of smaller contributions, your friends and family will often be investing or giving less. Limits may be set for non-accredited investors on equity crowdfunding platforms for legal reasons.

With pledge crowdfunding, such as Kickstarter, where rewards are offered people donate the amount representing the reward. Many of these projects are for consumer gadgets and the reward system makes the startup a business which forward sells it’s products. In this case family and friends will end up receiving rewards they can use, give away or sell.

The risk is diminished by spreading the load through many friends and family. However, it’s still vital that you get family and friends onside first. If you can get your family and friends to understand and support your project or startup then you have a real chance to get funded. If you can’t get your friends and family to understand your project then you need to give them reasons as to why they should.

It’s a common complaint in crowdfunding forums that family and friends were not supportive. Well, times are tough. Think about how you can improve your image among friends and family early. The easiest to understand ideas are likely to be get the most traction. People need to be inspired by your idea!

Before you start using social media to spread your message you must carefully consider how to simply explain your ambitious plans to your nearest and dearest.

Links:

Using Social Media to Crowdfund

Social media is a popular tool with crowdfunding projects using the pledge method of crowdfunding. Users inform all their followers on Facebook, Google + and Twitter about the ongoing project and provide updates. READ MORE…

Friends and Family: Most entrepreneurs first go to friends and family to raise seed capital. However placing too much burden on friends and family can be risky. Ask any startup entrepreneur that has a failed venture behind them about the pain involved in loosing family money. It's embarrassing and can wreck havoc on relationships. With crowdfunding you will still need to rely on family and friends for the initial investment. Friends and family feature prominently in almost all successful crowdfunding ventures. Using social networking your family and friends will be the start of any potential build-up or viral communication announcing your project or startup. The difference is that you are not going to them for a large amount. Each member of the your 'tribe' can invest the amount they feel comfortable with. Due to the nature of crowdfunding featuring a larger number of smaller contributions, your friends and family will often be investing or giving less. Limits may be set for non-accredited investors on equity crowdfunding platforms for legal reasons. With pledge crowdfunding, such as Kickstarter, where rewards are offered people donate the amount representing the reward. Many of these projects are for consumer gadgets and the reward system makes the startup a business which forward sells it's products. In this case family and friends will end up receiving rewards they can use, give away or sell. The risk is diminished by spreading the load through many friends and family. However, it's still vital that you get family and friends onside first. If you can get your family and friends to understand and support your project or startup then you have a real chance to get funded. If you can't get your friends and family to understand your project then you need to give them reasons as to why they should. It's a common complaint in crowdfunding forums that family and friends were not supportive. Well, times are tough. Think about how you can improve your image among friends and family early. The easiest to understand ideas are likely to be get the most traction. People need to be inspired by your idea! Before you start using social media to spread your message you must carefully consider how to simply explain your ambitious plans to your nearest and dearest. Links:

Using Social Media to Crowdfund Social media is a popular tool with crowdfunding projects using the pledge method of crowdfunding. Users inform all their followers on Facebook, Google + and Twitter about the ongoing project and provide updates. READ MORE...

The Crowdfunding Pitch Description

Editor — Fri, 08 Feb 2013 23:40:27 +0000

The Crowdfunding Pitch Description

The written description you offer online will differ between Pledge Projects and Equity Startups. The former is less formal while the latter requires a professional approach. Some elements are interchangeable so you should read both.

The Pledge Project Description

Start with a catchy title or heading for the written description of your project. Follow with a brief description in a couple of sentences. A call to action often follows. A factual statement and a positive question are tools often used by writers. Example: A third of all children in the region have no safe drinking water. Do you believe all children deserve clean drink water? Join us to provide clean drinking water in the region!

Using simple words and short sentences to tell your story. People relate to human stories and the efforts of others. Give background about who you are and what problem you are trying to solve. Show how you are going to solve the problem with a product or a service. Introduce your team or supporters at this point.

Call to action. Ask for the money you need to make your project or startup possible. Tell then what you intend to spend the money on. Explain the rewards you intend to give.

Most important is your PASSION! Be passionate, sincere, vital, honest and, if possible, amusing.

While the above presentation is on stage one can learn a lot about the way in which the presenter has passionately explained his business model. The product becomes more than a plastic water bottle- it saves millions of lives and changes the world.

Be sure to read the preceeding article on the pitch video as the same principles apply. Also add photos and diagrams that promote your project or Startup. It’s important to prepare properly- write, rewrite, have someone check your description and check the spelling with your spell checker! A hastily written grammatically incorrect description with lots of obviously bad spelling mistakes will make you look ignorant and lazy.

The Equity Crowdfunding Description

In the case of equity crowdfunding you will need to convince investors as well as friends and family. It is best to approach the written description as if you have a bunch of investors in the room, listening to your every word (or not!).

Start with the elevator pitch, the short summary that quickly defines your business to be. Picture yourself in a lift with an investor with just 30 seconds to 2 minutes maximum to make an impression. This is where you explain the problem in the market and the need for your solution.

Next describe your product or service solution. How does it work? What are the benefits to the consumer? What technology do you have that makes your product or service different? Using credible data describe the size of your market. Investors are looking for double digit growth in large markets. Show the investor you understand the market complexities and market opportunities.

Explain your business model and how you are going to make money. Explain who pays. Be clear about revenue, profit and growth. Tackle your competition head on. Explain your advantages.

Explain your marketing and sales plans, the timeline and budget. Introduce working partnerships with other companies. Next introduce you startup or executive leadership team. Qualifications and experience count.

Using your Financial Projections or Investors Plan highlight the revenues, expenses, break even point, burn rate and projected growth. Be sure to include a graph at this point. Now explain the money you need and how you plan to use it.

Describe the equity you are giving in exchange for the crowdfunding, as well as any rewards you have chosen to give as an added incentive. Finally explain the exit strategy. Are you looking for an IPO, sale to competitors or buy back of shares? Will you pay dividends? What time period is given for the investor exit? What rate of return is sought for investors annually?

Although you are not on stage you should practice this presentation description as if you were. You will need to add bullets to highlight descriptions and keep the presentation a bit simpler. Be sure to add photos. You can also refer then to the business plan and investor plan for some of the details. Add links to your startup or product homepage. Write and rewrite. Get help from a writer if need be.

Above is a class by leading angel investor Dave McClure, the founder of 500 Startups, on ‘How to Pitch to a VC’. Again, the pitch spoken about is face to face, but the same elements apply. Below is a link to the accompanying slideshow.

Links:

The Team

Unless you are raising money for a small project you can do yourself you need a team. Your friends and family may understand your individual promise but an investor would prefer to back a team. For a startup a team is essential. Read More…

The Crowdfunding Pitch Description The written description you offer online will differ between Pledge Projects and Equity Startups. The former is less formal while the latter requires a professional approach. Some elements are interchangeable so you should read both. The Pledge Project Description Start with a catchy title or heading for the written description of your project. Follow with a brief description in a couple of sentences. A call to action often follows. A factual statement and a positive question are tools often used by writers. Example: A third of all children in the region have no safe drinking water. Do you believe all children deserve clean drink water? Join us to provide clean drinking water in the region! Using simple words and short sentences to tell your story. People relate to human stories and the efforts of others. Give background about who you are and what problem you are trying to solve. Show how you are going to solve the problem with a product or a service. Introduce your team or supporters at this point. Call to action. Ask for the money you need to make your project or startup possible. Tell then what you intend to spend the money on. Explain the rewards you intend to give. Most important is your PASSION! Be passionate, sincere, vital, honest and, if possible, amusing. While the above presentation is on stage one can learn a lot about the way in which the presenter has passionately explained his business model. The product becomes more than a plastic water bottle- it saves millions of lives and changes the world. Be sure to read the preceeding article on the pitch video as the same principles apply. Also add photos and diagrams that promote your project or Startup. It's important to prepare properly- write, rewrite, have someone check your description and check the spelling with your spell checker! A hastily written grammatically incorrect description with lots of obviously bad spelling mistakes will make you look ignorant and lazy. The Equity Crowdfunding Description In the case of equity crowdfunding you will need to convince investors as well as friends and family. It is best to approach the written description as if you have a bunch of investors in the room, listening to your every word (or not!). Start with the elevator pitch, the short summary that quickly defines your business to be. Picture yourself in a lift with an investor with just 30 seconds to 2 minutes maximum to make an impression. This is where you explain the problem in the market and the need for your solution. Next describe your product or service solution. How does it work? What are the benefits to the consumer? What technology do you have that makes your product or service different? Using credible data describe the size of your market. Investors are looking for double digit growth in large markets. Show the investor you understand the market complexities and market opportunities. Explain your business model and how you are going to make money. Explain who pays. Be clear about revenue, profit and growth. Tackle your competition head on. Explain your advantages. Explain your marketing and sales plans, the timeline and budget. Introduce working partnerships with other companies. Next introduce you startup or executive leadership team. Qualifications and experience count. Using your Financial Projections or Investors Plan highlight the revenues, expenses, break even point, burn rate and projected growth. Be sure to include a graph at this point. Now explain the money you need and how you plan to use it. Describe the equity you are giving in exchange for the crowdfunding, as well as any rewards you have chosen to give as an added incentive. Finally explain the exit strategy. Are you looking for an IPO, sale to competitors or buy back of shares? Will you pay dividends? What time period is given for the investor exit? What rate of return is sought for investors annually? Although you are not on stage you should practice this presentation description as if you were. You will need to add bullets to highlight descriptions and keep the presentation a bit simpler. Be sure to add photos. You can also refer then to the business plan and investor plan for some of the details. Add links to your startup or product homepage. Write and rewrite. Get help from a writer if need be. Above is a class by leading angel investor Dave McClure, the founder of 500 Startups, on 'How to Pitch to a VC'. Again, the pitch spoken about is face to face, but the same elements apply. Below is a link to the accompanying slideshow. Links:

The Team Unless you are raising money for a small project you can do yourself you need a team. Your friends and family may understand your individual promise but an investor would prefer to back a team. For a startup a team is essential. Read More...

The Crowdfunding Pitch Video

Editor — Fri, 08 Feb 2013 23:36:23 +0000

The Crowdfunding Pitch Video

A Pitch in investment circles refers to the presentation given by an entrepreneur to a investor to convince the investor to invest. The Crowdfunding Pitch online should include a powerful video clip, detailed descriptions of your product or startup, attached information and links to your product or home page.

The Pitch Video is extremely important. It is the first opportunity you have on a crowdfunding platform of making a good impression. You need to take extreme care on the presentation. Furthermore the impact of the first 10 seconds will often decide if the viewer continues to be engaged. Just as you shouldn’t go to an important job interview looking like a slob, you shouldn’t waste all your efforts on a poor video (or no video at all!).

Your pitch video clip doesn’t have to be professional, but should be done with care and consideration. You should plan the pitch, test it on friends and work carefully to engage the audience and getting your point across. Scott Steinberg has written a very good article on the pitch in the Huffington Post. Links to the article and a free ebook are below.

Work on a video pitch of less than 2 minutes if possible. Create a dynamic, easy to watch video clip. Your video pitch should contain all your selling points without being pushy, soppy, pandering or painful. Your passion for the project should come through. People give to passionate and energetic people who they trust and admire.

Does your product or startup solve a problem? Do you have something unique to offer? Sometimes the product is the same but the delivery and service are unique. You might be able to provide a much better price by cutting out the middleman. One thing is for sure, people are very visually driven. Spend time watching other video clips and measure your own response to invitations to give, buy or invest.

The video pitch content should also tell your story. What’s the human interest story? Are you a talented group setting up in a neighbourhood needing a helping hand while you work on the next big thing? People are interested in people, not grey faceless corporations.

Be open about the money. Explain exactly how you plan to use it over a time period. Do the mathematics. Someone is bound to check the numbers and ask you online. Take the time to explain the rewards you offer. Show your commitment to keeping in touch over an extended period of time. Try to involve your givers. Remember, it’s not all about the money! Crowdfunding is an exceptional way to test your product or service in the marketplace.

If you have the funds you can find a specialist to produce a decent video clip for you. Even if you do, it’s best that you pay a lot of attention to the details to be acted upon in this article and through the links below.

Links:

The Crowdfunding Pitch Description

Start with a catchy title or heading for the description of your project or Startup. Follow with a brief description in a couple of sentences. A call to action often follows. A factual statement and a positive question are tools often used by writers. Example: A third of all children in the region have no safe drinking water. Do you believe all children deserve clean drink water? Join us to provide clean drinking water in the region! READ MORE…

The Crowdfunding Pitch Video A Pitch in investment circles refers to the presentation given by an entrepreneur to a investor to convince the investor to invest. The Crowdfunding Pitch online should include a powerful video clip, detailed descriptions of your product or startup, attached information and links to your product or home page. The Pitch Video is extremely important. It is the first opportunity you have on a crowdfunding platform of making a good impression. You need to take extreme care on the presentation. Furthermore the impact of the first 10 seconds will often decide if the viewer continues to be engaged. Just as you shouldn't go to an important job interview looking like a slob, you shouldn't waste all your efforts on a poor video (or no video at all!). Your pitch video clip doesn't have to be professional, but should be done with care and consideration. You should plan the pitch, test it on friends and work carefully to engage the audience and getting your point across. Scott Steinberg has written a very good article on the pitch in the Huffington Post. Links to the article and a free ebook are below. Work on a video pitch of less than 2 minutes if possible. Create a dynamic, easy to watch video clip. Your video pitch should contain all your selling points without being pushy, soppy, pandering or painful. Your passion for the project should come through. People give to passionate and energetic people who they trust and admire. Does your product or startup solve a problem? Do you have something unique to offer? Sometimes the product is the same but the delivery and service are unique. You might be able to provide a much better price by cutting out the middleman. One thing is for sure, people are very visually driven. Spend time watching other video clips and measure your own response to invitations to give, buy or invest. The video pitch content should also tell your story. What's the human interest story? Are you a talented group setting up in a neighbourhood needing a helping hand while you work on the next big thing? People are interested in people, not grey faceless corporations. Be open about the money. Explain exactly how you plan to use it over a time period. Do the mathematics. Someone is bound to check the numbers and ask you online. Take the time to explain the rewards you offer. Show your commitment to keeping in touch over an extended period of time. Try to involve your givers. Remember, it's not all about the money! Crowdfunding is an exceptional way to test your product or service in the marketplace. If you have the funds you can find a specialist to produce a decent video clip for you. Even if you do, it's best that you pay a lot of attention to the details to be acted upon in this article and through the links below. Links:

The Crowdfunding Pitch Description Start with a catchy title or heading for the description of your project or Startup. Follow with a brief description in a couple of sentences. A call to action often follows. A factual statement and a positive question are tools often used by writers. Example: A third of all children in the region have no safe drinking water. Do you believe all children deserve clean drink water? Join us to provide clean drinking water in the region! READ MORE...

Types of Crowdfunding Models

Editor — Fri, 08 Feb 2013 23:26:32 +0000

Types of Crowdfunding Models

Pledge Crowdfunding takes place when money is contributed and rewards or gifts are given. The money received is essentially a donation and the reward is a thank you gift or an incentive. This is typically what happens on crowdfunding platforms like Kickstarter and Indiegogo, where creative artists, social ventures and commercial interests all seek contributions.

In the case of a social or non-profit enterprise the money given is rewarded with a token of gratitude from the receiver. The motive for giving in this case is usually philanthropic in nature- giving for the better good of mankind.

Global Giving posts projects from non-profits across the world. An excellent place to give!

In the commercial world of crowdfunding the money raised is offered, often to a fan base, with a reward that equates to the value of money given. With a band you may get the latest track download or tickets to a concert. Meanwhile while a product startup may agree to send you the latest iPad or iPhone gadget they produce. In essence this is the forward selling of products.

People are often motivated to give to commercial crowdfunding by reasons of wanting to own the reward. However, that is not the sole reason for pledge crowdfunding ‘donations’. People are also motivated to help spur on the efforts of friends and family members and some may feel they share a bond or affinity with the crowdfunding project developer or startup.

Equity Crowdfunding is crowdfunding in which a startup or newly formed company seeks funding from the crowd, in exchange for providing equity- a shareholding in the business.

Equity crowdfunding falls under the laws governing securities and investments of each nation. The invariably strict laws are designed to prevent fraud and offer protection to the investors. Soliciting investments from the public is often illegal and crowdfunding platforms have to tread carefully. The regulatory authorities of the country or state oversee the laws. In the UK that’s the FSA- Financial Services Authority- the SEC- Securities and Exchange Commission in the USA, on so on.

All or Nothing crowdfunding, also known as the street performer protocol, is the crowdfunding model in which the receiver only gets the funds given if 100% of the funds are raised. The target value must be reached in a period of time set on the platform. If the total is not reached then the funds pledged are not transferred to the receiver. This is especially useful to an entrepreneur if receiving less than the full amount will mean that promises cannot be fulfilled.

Keep it All crowdfunding is the model in which the receiver can receive any amount. In this case the individual or organisation must make the best of the total raised. This would suit a non-profit with an easily deliverable and low cost reward in exchange for a donation (or no reward at all!).

Loan Crowdfunding takes place on peer-to-peer platforms where the money sought is raised by providing pitches and promising a percentage rate of interest for the money raised. There are several types of lending platforms, including micro lending. Prosper Marketplace, Zopa and Lending Club are examples of crowd lending platforms.

Links:

The Crowdfunding Pitch Video

A Pitch is a commonly used expression in sales and advertising and refers to the presentation given by a seller to a buyer to convince the buyer to buy. The Crowdfunding Pitch should include a powerful video clip, detailed descriptions of your product or startup, attached information and links to your product or home page. READ MORE…

Types of Crowdfunding Models Pledge Crowdfunding takes place when money is contributed and rewards or gifts are given. The money received is essentially a donation and the reward is a thank you gift or an incentive. This is typically what happens on crowdfunding platforms like Kickstarter and Indiegogo, where creative artists, social ventures and commercial interests all seek contributions. In the case of a social or non-profit enterprise the money given is rewarded with a token of gratitude from the receiver. The motive for giving in this case is usually philanthropic in nature- giving for the better good of mankind. Global Giving posts projects from non-profits across the world. An excellent place to give! In the commercial world of crowdfunding the money raised is offered, often to a fan base, with a reward that equates to the value of money given. With a band you may get the latest track download or tickets to a concert. Meanwhile while a product startup may agree to send you the latest iPad or iPhone gadget they produce. In essence this is the forward selling of products. People are often motivated to give to commercial crowdfunding by reasons of wanting to own the reward. However, that is not the sole reason for pledge crowdfunding 'donations'. People are also motivated to help spur on the efforts of friends and family members and some may feel they share a bond or affinity with the crowdfunding project developer or startup. Equity Crowdfunding is crowdfunding in which a startup or newly formed company seeks funding from the crowd, in exchange for providing equity- a shareholding in the business. Equity crowdfunding falls under the laws governing securities and investments of each nation. The invariably strict laws are designed to prevent fraud and offer protection to the investors. Soliciting investments from the public is often illegal and crowdfunding platforms have to tread carefully. The regulatory authorities of the country or state oversee the laws. In the UK that's the FSA- Financial Services Authority- the SEC- Securities and Exchange Commission in the USA, on so on. All or Nothing crowdfunding, also known as the street performer protocol, is the crowdfunding model in which the receiver only gets the funds given if 100% of the funds are raised. The target value must be reached in a period of time set on the platform. If the total is not reached then the funds pledged are not transferred to the receiver. This is especially useful to an entrepreneur if receiving less than the full amount will mean that promises cannot be fulfilled. Keep it All crowdfunding is the model in which the receiver can receive any amount. In this case the individual or organisation must make the best of the total raised. This would suit a non-profit with an easily deliverable and low cost reward in exchange for a donation (or no reward at all!). Loan Crowdfunding takes place on peer-to-peer platforms where the money sought is raised by providing pitches and promising a percentage rate of interest for the money raised. There are several types of lending platforms, including micro lending. Prosper Marketplace, Zopa and Lending Club are examples of crowd lending platforms. Links:

The Crowdfunding Pitch Video A Pitch is a commonly used expression in sales and advertising and refers to the presentation given by a seller to a buyer to convince the buyer to buy. The Crowdfunding Pitch should include a powerful video clip, detailed descriptions of your product or startup, attached information and links to your product or home page. READ MORE...

What is Crowdfunding?

Editor — Fri, 08 Feb 2013 23:24:58 +0000

What is Crowdfunding?

Crowd funding is the coming together of a number of individuals to support fundraising efforts by others. Crowd funding is an extension of the crowd sourcing phenomena, in which individuals network in a crowd to support efforts of other individuals or groups.

Many social efforts such as disaster relief operations have received help and funding from the crowd. The modern use of the word refers to online activities. Musicians were among the first to embrace crowd funding online.

In 1997 US fans of British band Marillon underwrote a US Tour, raising US $ 60,000. This was widely reported in the media and soon other artists started using crowds to fund tours, events, albums and more. By 2001 a US crowdfunding website called ArtistShare was launched, the first platform built to enhance the power of crowd funding. The site Sellaband followed in 2006. By 2006 the phrase crowd funding appears when a journalist seeks to describe the popular phenomena.

Crowdfunding continued to grow independently and on crowdfunding platforms. The leaders in pledge crowdfunding today, by size and volume, are Indiegogo (2008) and Kickstarter (2009). Others are RocketHub, GoFundMe, SponsorMe, Rock The Post and Peerbackers.

Early on independent film makers joined musicians to raise cash online. Other inventive social, media and commercial crowdfunding projects were also soon raising income. These are known as pledge or reward crowdfunding projects. Persons contributing receive gifts or rewards for their contribution (see Types of Crowdfunding Models).

Following the success of pledge or reward based crowdfunding on sites like Kickstarter and Indiegogo entrepreneurs started to look towards ways to harness the crowd to invest directly in businesses in exchange for shares (known as equity).

Equity crowdfunding was first confined to accredited investors, wealthy individuals, invited to support startups through online groups. Equity crowdfunding is regulated by the individual investment laws of each country and controlled by investment authorities such as the FSA- Financial Services Authority (UK) and the SEC-Securities and Exchange Commission (USA).

In 2010 Crowdcube launched in the UK as an equity crowdfunding platform serving all size investors. Seedrs launched in early 2012. Tech Crowdz will follow as an all investor equity crowdfunding platform for startups late in 2013. Equity crowdfunding platforms have appeared in Europe and Australia.

In the USA President Obama signed into law the JOBS Act-Jumpstart Our Business Startups Act- on the 5th April, 2012. The act provides for crowdfunding in the United States by investors other than just the wealthy. The regulations and oversight administration will be handled by the SEC- Securities and Exchange Commission. The result will be that in 2013 equity crowdfunding be available online to the ordinary man in the street in the USA.

Another form of crowdfunding revolves around money lending. Loans are given, often peer-to-peer, based on the pitch and promises of the startup. Instead of equity givers get interest on the loans. Prosper Marketplace, Zopa and Lending Club are examples of crowd lending platforms.Links:

Types of Crowdfunding Models

Pledge Crowdfunding takes place when money is contributed and rewards or gifts are given. The money received is essentially a donation and the reward is a thank you gift or an incentive. This is typically what happens on crowdfunding platforms like Kickstarter and Indiegogo, where creative artists, social ventures and commercial interests all seek contributions. READ MORE…

What is Crowdfunding? Crowd funding is the coming together of a number of individuals to support fundraising efforts by others. Crowd funding is an extension of the crowd sourcing phenomena, in which individuals network in a crowd to support efforts of other individuals or groups. Many social efforts such as disaster relief operations have received help and funding from the crowd. The modern use of the word refers to online activities. Musicians were among the first to embrace crowd funding online. In 1997 US fans of British band Marillon underwrote a US Tour, raising US $ 60,000. This was widely reported in the media and soon other artists started using crowds to fund tours, events, albums and more. By 2001 a US crowdfunding website called ArtistShare was launched, the first platform built to enhance the power of crowd funding. The site Sellaband followed in 2006. By 2006 the phrase crowd funding appears when a journalist seeks to describe the popular phenomena. Crowdfunding continued to grow independently and on crowdfunding platforms. The leaders in pledge crowdfunding today, by size and volume, are Indiegogo (2008) and Kickstarter (2009). Others are RocketHub, GoFundMe, SponsorMe, Rock The Post and Peerbackers. Early on independent film makers joined musicians to raise cash online. Other inventive social, media and commercial crowdfunding projects were also soon raising income. These are known as pledge or reward crowdfunding projects. Persons contributing receive gifts or rewards for their contribution (see Types of Crowdfunding Models). Following the success of pledge or reward based crowdfunding on sites like Kickstarter and Indiegogo entrepreneurs started to look towards ways to harness the crowd to invest directly in businesses in exchange for shares (known as equity). Equity crowdfunding was first confined to accredited investors, wealthy individuals, invited to support startups through online groups. Equity crowdfunding is regulated by the individual investment laws of each country and controlled by investment authorities such as the FSA- Financial Services Authority (UK) and the SEC-Securities and Exchange Commission (USA). In 2010 Crowdcube launched in the UK as an equity crowdfunding platform serving all size investors. Seedrs launched in early 2012. Tech Crowdz will follow as an all investor equity crowdfunding platform for startups late in 2013. Equity crowdfunding platforms have appeared in Europe and Australia. In the USA President Obama signed into law the JOBS Act-Jumpstart Our Business Startups Act- on the 5th April, 2012. The act provides for crowdfunding in the United States by investors other than just the wealthy. The regulations and oversight administration will be handled by the SEC- Securities and Exchange Commission. The result will be that in 2013 equity crowdfunding be available online to the ordinary man in the street in the USA. Another form of crowdfunding revolves around money lending. Loans are given, often peer-to-peer, based on the pitch and promises of the startup. Instead of equity givers get interest on the loans. Prosper Marketplace, Zopa and Lending Club are examples of crowd lending platforms.Links:

Types of Crowdfunding Models Pledge Crowdfunding takes place when money is contributed and rewards or gifts are given. The money received is essentially a donation and the reward is a thank you gift or an incentive. This is typically what happens on crowdfunding platforms like Kickstarter and Indiegogo, where creative artists, social ventures and commercial interests all seek contributions. READ MORE...

Should investors do less or more due diligence when investing in startups?

Editor — Mon, 04 Feb 2013 23:20:51 +0000

The article is by Dharmesh Shah, founder and CTO at HubSpot. Dharmesh runs the influential OnStartups.com blog and LinkedIn Group. He has numerous investments, started during his time at MIT. He now invests via his AngelList profile, and concentrates on Internet/ Software Companies.

The main point Shah makes is that he simply does not have the time to do effective due diligence. He also reckons that there is a good chance the startup will pivot, changing from it’s original focus, so the process of due diligence is somewhat flawed.

However the article get’s even more interesting towards the end. Shah is now investing US $ 25,000 in a Launch Festival Hackathon (San Francisco)- http://festival.launch.co/

The idea is simple. He invests the money in the prize winner. They get this option in addition to the prize. By his thinking he is able to avoid wasting his valuable TIME and pass responsibility to the judges and crowd to help him select a great startup. Judging by past winners of the contest he may be on to something.

What do you think? Would you invest in startup pitch contest winners? Comment below.

I assumed that all startup investors did a lot of due diligence until I read the following article: http://onstartups.com/tabid/3339/bid/94928/Avoiding-Undue-Diligence-My-Strange-Approach-To-Angel-Investing.aspx The article is by Dharmesh Shah, founder and CTO at HubSpot. Dharmesh runs the influential OnStartups.com blog and LinkedIn Group. He has numerous investments, started during his time at MIT. He now invests via his AngelList profile, and concentrates on Internet/ Software Companies. The main point Shah makes is that he simply does not have the time to do effective due diligence. He also reckons that there is a good chance the startup will pivot, changing from it's original focus, so the process of due diligence is somewhat flawed. However the article get's even more interesting towards the end. Shah is now investing US $ 25,000 in a Launch Festival Hackathon (San Francisco)- http://festival.launch.co/ The idea is simple. He invests the money in the prize winner. They get this option in addition to the prize. By his thinking he is able to avoid wasting his valuable TIME and pass responsibility to the judges and crowd to help him select a great startup. Judging by past winners of the contest he may be on to something. What do you think? Would you invest in startup pitch contest winners? Comment below.

UK Equity Crowdfunding Platform Seeks Partners

Editor — Sat, 26 Jan 2013 15:58:35 +0000

Seeking an Investor for equity share. Also CFO and Startup Specialist; PR Officer; Webmaster and Web Assistants willing to work for wage and equity.

About Us: UK Equity Crowdfunding & Startup Services. Applying for FSA/FCA accreditation (+6 month process). To be based in Cambridge, UK.

http://www.techcrowdz.com

Seeking an Investor for equity share. Also CFO and Startup Specialist; PR Officer; Webmaster and Web Assistants willing to work for wage and equity. About Us: UK Equity Crowdfunding & Startup Services. Applying for FSA/FCA accreditation (+6 month process). To be based in Cambridge, UK. http://www.techcrowdz.com

UK Startup Internships and Jobs

Editor — Sat, 26 Jan 2013 15:03:35 +0000

News from Entrepreneur First, a UK entrepreneurial support enterprise, is that 6 of their supported startups are seeking interns and/or partners. The companies are:

Flavrbox- Food and Drink boxes delivered monthly
Verse.ie- Collaboration software
ClickMechanic- Mobile mechanics
AvoCarrot- Mobile rewards
MintLane- Celebrity Shopping
Epistora- Scientist news feeds

For the full details and links go to Internships at EF Startups.

News from Entrepreneur First, a UK entrepreneurial support enterprise, is that 6 of their supported startups are seeking interns and/or partners. The companies are:

Flavrbox- Food and Drink boxes delivered monthly
Verse.ie- Collaboration software
ClickMechanic- Mobile mechanics
AvoCarrot- Mobile rewards
MintLane- Celebrity Shopping
Epistora- Scientist news feeds

For the full details and links go to Internships at EF Startups.

And the TNW UK Startup Awards winners are…

Editor — Wed, 23 Jan 2013 22:18:44 +0000

The Next Web have announced the winners of the TNW UK Startup Awards, an online competition to discover the most talented startups, founders, investors and accelerators in the United Kingdom.

Startup of the Year: raspberrypi.org

Best Web App: gocardless.com

Best Mobile App: hailocab.com

Best Design: Clear

Best User Experience: Clear

Best (Co-)Founder: Alicia Navarro (@AliciaNavarro)

Best Investor: indexventures.com

5,500 persons voted online. For more information on the competition go to TNW UK Startup Awards

Comments welcome!

The Next Web have announced the winners of the TNW UK Startup Awards, an online competition to discover the most talented startups, founders, investors and accelerators in the United Kingdom. Startup of the Year: raspberrypi.org Best Web App: gocardless.com Best Mobile App: hailocab.com Best Design: Clear Best User Experience: Clear Best (Co-)Founder: Alicia Navarro (@AliciaNavarro) Best Investor: indexventures.com 5,500 persons voted online. For more information on the competition go to TNW UK Startup Awards Comments welcome!

Smartphone app U-Challenge crowdfunds on Seedrs

Editor — Mon, 03 Dec 2012 11:40:36 +0000

Consumer mobile application U-Challenge.com has raised £20,000 on the UK crowdfunding platform Seedrs.com. The £20,000 was raised from 36 investors- an average of £555.55 each.

The U-Challenge startup promises to deliver an app, on Android and iPhone, through which one can challenge others to perform a task or learn a skill. This can be handy and entertaining for a number of reasons. You might like to persuade or include others in challenges like going to the gym or stopping smoking. The challenge can be linked to a reward and include a countdown counter. The challenge can be made public and searchable by keyword and location. Users can view profiles and follow others for challenges. Crowdfunding Cafe Article.

Consumer mobile application U-Challenge.com has raised £20,000 on the UK crowdfunding platform Seedrs.com. The £20,000 was raised from 36 investors- an average of £555.55 each. The U-Challenge startup promises to deliver an app, on Android and iPhone, through which one can challenge others to perform a task or learn a skill. This can be handy and entertaining for a number of reasons. You might like to persuade or include others in challenges like going to the gym or stopping smoking. The challenge can be linked to a reward and include a countdown counter. The challenge can be made public and searchable by keyword and location. Users can view profiles and follow others for challenges. Crowdfunding Cafe Article.

Fashion Startups in the news today

Editor — Thu, 29 Nov 2012 00:01:27 +0000

UK Startup News Today- 28th November, 2012

Fashion Startup Tapestry have introduced Android and IOS smartphone mobile apps that allow the user to scan barcodes in stores. Tapestry lets you collect and curate items in store, on your mobile. They send you content, offers and rewards about the items you have curated. Tapestry let’s you review, store or buy these items from your mobile. Visit http://www.tapestry.mobi/
The first person to be accepted for the ‘UK Startup Loans Initiative’ is fashion designer Elana Mingas of Tangle Dress Design in Manchester. She applied through Business Finance Solutions a partner in the scheme. Passing the business plan and cash flow forecast test were critical. Once accepted the publicity generated by the award has been phenomenal. Also included were a business mentor and free virtual office space from Regus. Good luck Elana! http://www.tangledressdesign.com/

To feature send your startup news and blog articles to pressrelease@techcrowdz.com.

UK Startup News Today- 28th November, 2012

Fashion Startup Tapestry have introduced Android and IOS smartphone mobile apps that allow the user to scan barcodes in stores. Tapestry lets you collect and curate items in store, on your mobile. They send you content, offers and rewards about the items you have curated. Tapestry let's you review, store or buy these items from your mobile. Visit http://www.tapestry.mobi/
The first person to be accepted for the 'UK Startup Loans Initiative' is fashion designer Elana Mingas of Tangle Dress Design in Manchester. She applied through Business Finance Solutions a partner in the scheme. Passing the business plan and cash flow forecast test were critical. Once accepted the publicity generated by the award has been phenomenal. Also included were a business mentor and free virtual office space from Regus. Good luck Elana! http://www.tangledressdesign.com/

To feature send your startup news and blog articles to pressrelease@techcrowdz.com.

Your Crowdfunding Dream Team

Editor — Sat, 15 Sep 2012 18:43:20 +0000

Two common mistakes in building a Founder’s Team are hiring friends who don’t add the skills needed and not paying attention to the startup culture developing.

Peter Cohan, author of ‘Hungry Start-up Strategy’ writes in Forbes about five steps to building a team (link below). According to Cohan you should firstly evaluate your founding team skills carefully. The team must agree on roles and reaching goals. Building company culture comes in as a third step. The team needs to agree on shared values and build core culture. Founders need to carefully evaluate the set of business skills needed to run the business planned. Which founder will cover which skill sets and where will the other skills be obtained? Finally, Cohan stresses using culture to hire, promote and purge people in the new startup.

Watch the YouTube video above featuring Eric Lunt Co-Founder of Feedburner, which was purchased by Google. As a serial entrepreneur he has some very valuable words about putting a startup team together. Look out for the bits on specialists, stem cells vs specialist hires, culture in the company, hiring techniques, risk aversion and passion. Some of the advice may be early as it covers first hiring as well as founders but it’s important to consider right now, so it doesn’t come as too much of a surprise. A lot is common sense but some very helpful tips come up.

A team usually consists of people with skills in management, administration, marketing, sales and engineers. The actual mix of persons depends on the type of business. A technical startup needs a technician, an engineer or even a scientist. Every team should have a partner able to manage the startup transition phase. Administration and financial management become important early on. Marketing, PR and Sales professionals bring valuable skills to any startup.

Vitally important in a startup team is Passion, Competence and Commitment. To find partners you need to network, go to meetings, follow suggestions and seek introductions. Startups with young entrepreneurs often find connections at university level, in labs, classes and groups. Consider recruitment agencies if your budget allows.

Links:

Friends and Family

Entrpreneurs almost always go to friends and family first to raise seed capital. Ask any startup entrepreneur that has a failed venture behind them about the pain involved in loosing family money. It’s embarrassing and can wreck havoc on your relationships. READ MORE…

The Team: Anything above an individual project requires a team. Your friends and family may understand your individual promise but an investor would prefer to back a team. For a startup a team is essential. Two common mistakes in building a Founder's Team are hiring friends who don't add the skills needed and not paying attention to the startup culture developing. Peter Cohan, author of 'Hungry Start-up Strategy' writes in Forbes about five steps to building a team (link below). According to Cohan you should firstly evaluate your founding team skills carefully. The team must agree on roles and reaching goals. Building company culture comes in as a third step. The team needs to agree on shared values and build core culture. Founders need to carefully evaluate the set of business skills needed to run the business planned. Which founder will cover which skill sets and where will the other skills be obtained? Finally, Cohan stresses using culture to hire, promote and purge people in the new startup. Watch the YouTube video above featuring Eric Lunt Co-Founder of Feedburner, which was purchased by Google. As a serial entrepreneur he has some very valuable words about putting a startup team together. Look out for the bits on specialists, stem cells vs specialist hires, culture in the company, hiring techniques, risk aversion and passion. Some of the advice may be early as it covers first hiring as well as founders but it's important to consider right now, so it doesn't come as too much of a surprise. A lot is common sense but some very helpful tips come up. A team usually consists of people with skills in management, administration, marketing, sales and engineers. The actual mix of persons depends on the type of business. A technical startup needs a technician, an engineer or even a scientist. Every team should have a partner able to manage the startup transition phase. Administration and financial management become important early on. Marketing, PR and Sales professionals bring valuable skills to any startup. Vitally important in a startup team is Passion, Competence and Commitment. To find partners you need to network, go to meetings, follow suggestions and seek introductions. Startups with young entrepreneurs often find connections at university level, in labs, classes and groups. Consider recruitment agencies if your budget allows. Links:

Friends and Family Entrpreneurs almost always go to friends and family first to raise seed capital. Ask any startup entrepreneur that has a failed venture behind them about the pain involved in loosing family money. It's embarrassing and can wreck havoc on your relationships. READ MORE...