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crowd funding document for workshops sep 2016

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Karen Melonie Gould
Karen Melonie Gould

This document provides information on how to succeed in a crowdfunding campaign. It discusses the different types of crowdfunding (peer-to-peer, equity, and donations), and highlights important platforms like Kickstarter, Indiegogo, RocketHub, Fundable, and Crowdfunder. Key tips include researching the best platform for your project, setting achievable goals, generating buzz to share your campaign, and looking at examples of past successful campaigns for guidance. Tax incentives like SEIS and EIS are also summarized.

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HOW TO SUCCEED IN A SUCCESSFUL CROWD FUNDING CAMPAIGN Do you have the perfect idea for a product but lack the capital to make it come to life? Then crowdfunding could be just what you need and it is worth exploring but if you are going to go down this avenue research and do it thoroughly. 1. You need to know if you are going to prepare for P2P Crowd Funding or Equity Crowd Funding or donation – there are others but these are the most used and growing. Peer to Peer Crowd funding this was what first hit the UK from USA in 2014 and took the UK by storm and indeed with our then ALTERNATIVE FINANCE PLATFORM we noticed that the demand increased and thus I then became a Broker approved for Funding Circle who leads the UK in this field. What is P2P Crowd Funding – they are a debt/loan and is investment is raised by using a large number of investors. When sourcing larger investment amounts using Crowd Funding I like to advise to clients that they use a platform where other similar business models have been successful and use it for a smaller amount than they need to raise more PR awareness of their product or service. We originally worked with Funding Circle and have added others to our Portfolio of platforms that we trust and has worked for our members. Equity Crowd Funding is where Investors hang out to invest in your business model in return for equity/shares in your business so know and be prepared what you are comfortable to give away. We enjoy working with Crowd Cube who have over 200,000 investors awaiting for you to upload your business idea. There are many more innovative platforms springing up in the UK and some from our Nordic cousins who we will be working with in 2016 who I feel offer a fresher approach to this model of raising investment. Some even offer both loan and investment on the same platform as does Invesdor our new Partner for 2016. This company even supports your preparation for Crowd Funding and directs and guides you. www.invesdor.com This industry in the UK was worth £3.2b in 2016 and they predict it will even treble in 2016. Even though Seders hit the 100million mark invested by Feb 2016 since June 2012 and 38000 businesses from early stage to growth having been invested. In my view this is the reasons below re TAX RELIEF as below to use their platform. SEIS The first scheme, the Seed Enterprise Investment Scheme (SEIS), encourages investment in qualifying new seed-stage startups companies by providing individuals with 50% of their investment back in income tax relief. Plus, in the 2014/2015 tax year investors can benefit from 50% capital gains tax relief on gains which are reinvested in SEIS eligible shares. Also,
any gain arising on the disposal of the shares may be exempt from capital gains tax, and loss relief is available if the disposal results in a loss. EIS The second scheme, the Enterprise Investment Scheme (EIS), is designed to encourage investment in qualifying slightly later-stage companies by providing investors with up to 30% of their investment back in income tax relief. Plus investors can defer any capital gains tax on gains which are reinvested in EIS eligible shares, gains arising on the disposal of the shares may be exempt from capital gains tax, and loss relief is available if the disposal results in a loss. UK tax payers should note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. To learn more about how SEIS or EIS works, please read the online HMRC guidance or contact your professional tax advisor. These schemes provide great incentives for UK taxpayers who are either active investors or are just looking to support their friends and family in their entrepreneurial projects. Many Seedrs campaigns are looking to raise investment under one of these schemes and are identified as eligible with a small SEIS or EIS logo. Seedrs offers a simple and straightforward way to invest in a wide range of SEIS and EIS eligible companies and we take care of all the paperwork to help investors claim back their reliefs. It gives you the ability to raise money from a collective group of people who are connected through the internet and want to support your project. And it's extremely popular these days. But before you dive into your first campaign, it's important to determine which of the many crowdfunding sites is right for you. Let's explore the top five crowdfunding platforms for entrepreneurs and businesses in terms of popularity, types of projects funded, and other basic information so you can choose the best one for your business. The Benefits of Crowdfunding First off, you may wonder why you would want to use a crowdfunding platform to launch and fund your project. Here are a few reasons to consider. ï‚· You don't have to give away control, a stake in your company, or future revenue in exchange for funding (like on Shark Tank for example). ï‚· Crowdfunding your idea will force you to set achievable goals and hold you accountable for meeting them. ï‚· People love to share and tell their friends about projects they've backed and major media outlets tend to report on crowdfunding success stories.
So whether you need the funding for your business or not, crowdfunding may be a good option for generating buzz about your idea. In addition, the fact that you will get a strong customer base right from the start is also a big plus. Now, let's look at the top crowdfunding websites for entrepreneurs and businesses. Note that some popular crowdfunding sites were left out of this post because they are only for non-profits and causes vs. businesses and retail product development. Kickstarter Fees: 5% if you meet your goal plus payment processing fees. Payments: Amazon Payments Categories: Art, Comics, Dance, Design, Fashion, Film, Food, Games, Music, Photography, Publishing, Technology, and Theatre Kickstarter is the most well-known crowdfunding platform for people in the US and UK. Since it launched in 2009, they have helped connect backers with 42,000 projects for a total of $649 million raised. According to Quantcast, their website receives 9.9 million visits per month globally, which is no doubt a contributing factor as to why so many Kickstarter projects get funding. The most funded project to date is the Pebble, an e-paper watch for iPhone. Their goal was $100,000 and they received over $10 million from 68,929 backers. Once nice part about using Kickstarter is there are a lot of resources on how to create a successful campaign. You can start with our guide to running a successful Kickstarter campaign. You can also see some great examples of successful Kickstarter campaigns on Inc and read Mint's guide to a successful Kickstarter campaign. To boost the visibility of your Kickstarter, refer to 21 Places to Promote Your Kickstarter Campaign and 30 People to Promote Your Kickstarter Campaign. When your campaign is successfully funded, you can read about how to fulfill orders for your Kickstarter backers using Shopify. Indiegogo
Fees: 4% if you meet your goal, 9% if you don't plus payment processing fees. Payments: Paypal, ACH, Wire Transfer, or FirstGiving Categories: Art, Comic, Dance, Design, Fashion, Film, Gaming, Music, Photography, Theatre, Transmedia, Video, Writing, Causes, and Entrepreneurial (Food, Small Business, Sports, and Technology) Indiegogo is a worldwide crowdfunding platform that supports businesses, artists, and non-profits. They launched in 2008 with the goal of making sure that anyone, anywhere could have their dreams realized. The most funded project to date is the Let's Build a Tesla Museum. Their goal was $850,000 and they received $1.3 million from 33,253 funders. Be sure to read Indiegogo's Crowdfunding Tips for Campaigners that covers everything from getting started to after the campaign ends. You can also find a year in review of successful Indiegogo campaigns on Mashable. RocketHub Fees: 4% if you meet your goal, 8% if you don't plus payment processing fees. Payments: Secure Check or Digital Payment
Categories: Art, Business, Science, and Social RocketHub is a worldwide crowdfunding platform that gained exposure through the A&E networks. They have empowered businesses, governments, educators, and communities in over 1,500 projects and are the leaders in crowdfunding education. Currently, the most funded project to date is Extra Credits, a show about game design and the good games do. Their goal was $15,000 and they received $153,000 from 3,824 funders. No matter what crowdfunding network you use, be sure to look at RocketHub's Success School for insider knowledge and tools that can help you achieve your goals. Fundable Fees: $99 per month during active campaigns plus payment processing fees. Payments: WePay Categories: Startups Fundable is a crowdfunding platform that allows startups to offer rewards or equity in exchange for funding. According to the site, startups that offer rewards typically raise up to $50,000, whereas startups that offer equity usually raise more. The most funded project to date is DecisionDesk, an application tracking system for educational institutions. Their goal was $1.25 million and which they met. If you decide to run a Fundable campaign, refer to their blog post on gearing up for a successful crowdfund. Crowdfunder
Fees: 5% if you meet your goals plus payment processing fees. Payments: Amazon Payments Categories: Advertising to Wholesale Crowdfunder is a crowdfunding platform for US based businesses with a product or service. They help connect your business to their local networks of 20,000 entrepreneurs and investors. The most funded project to date is It's For Life, a company producing consumable and convenient health products. Their goal was $7,500 and they received $12,000 from 44 funders. Before you begin, visit the Crowdfunder Knowledge Center for 3 Steps to Campaign Success. You can also watch a Google+ Hangout with online and offline fundraising success strategies. How to Get Funded Regardless of which crowdfunding site you choose, here are some things you can do to make sure your campaign is successful.  Focus on creating a high quality, confident and convincing video. Most project profiles lead with a video and it's usually what people rely on when trying to decide whether to back a project.  Offer rewards that people will actually want. Put yourself in your customer's shoes when planning your reward levels and incentives.  Set a realistic funding goal. Crowdfunding websites are meant to give you the amount needed to cover your costs and get your project off of the ground, not to make you a millionaire.  Promote, promote, promote. Every day until the end of your campaign, promote your project everywhere and in every way that you can. We run Crowd Funding Campaigns for our members which cost as little at £950.00 using our email marketing tools complimented by our Social Media tools to feed your campaign posts into Social Media impacted releases all through www.gateway2digital.co.uk . A lot cheaper than hiring staff to implement this or outsource to Marketing companies.  Reach out to bloggers and reporters who write about similar crowdfunding projects. Depending on the type of campaign, you could receive mentions on major networks
like CNN, Mashable, Techcrunch and others. These types of mentions can have a great impact on whether your project is successfully funded or not.  Product images are important and professional photography goes a long way. Images can easily go viral on networks like Pinterest and Reddit and Instagram driving even more traffic to your campaign TOP TIPS FOR EQUITY CROWD FUNDING – www.invesdor.com 1. Don’t crowd fund too soon – make sure you have traction – sales 2. Have a video of 3-5 mins 3. Pitch Deck – slides 12 min 4. Have a justified valuation 5. Measure your traction against KPIs 6. Test the market – email marketing campaign to your raving fans 7. Be careful of FSMA – selling of shares to potential high net worth investors 8. Keep it simple 9. Have a one-line strap line to introduce your concept 10.Don’t get side tracked from making it too PR salesie 11.Aim to have at least 30-50% raised before going public – Invesdor support your journey of 30% 12.Justify your Q/A’s be prepared 13.Meet your Investors in person if they request 14.Have your Investors sign a NDA 15.Be honest and be you – have a personality 16. OUR OWN INHOUSE CROWD FUNDING TEAM TO SUPPORT We have within our Finance Relationship Team Experts that can source the right type of Crowd Funding platform for you and we prepare for this platform as we know how to as supported X in 2016 raise £3.2m equity Crowd Funding – NW technology/data. From September 2016 we will be running a FULL DAY WORKSHOP London Manchester on ‘RAISING FINANCE/INVESTMENT to start/grow a business – including our Guests Invesdor our Crowd Funding Partners. Email us to reserve a place. Karen Melonie Gould CEO/Founder www.gateway2enterprise.co.uk /karen@gateway2enterprise.co.uk

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crowd funding document for workshops sep 2016

  • 1. HOW TO SUCCEED IN A SUCCESSFUL CROWD FUNDING CAMPAIGN Do you have the perfect idea for a product but lack the capital to make it come to life? Then crowdfunding could be just what you need and it is worth exploring but if you are going to go down this avenue research and do it thoroughly. 1. You need to know if you are going to prepare for P2P Crowd Funding or Equity Crowd Funding or donation – there are others but these are the most used and growing. Peer to Peer Crowd funding this was what first hit the UK from USA in 2014 and took the UK by storm and indeed with our then ALTERNATIVE FINANCE PLATFORM we noticed that the demand increased and thus I then became a Broker approved for Funding Circle who leads the UK in this field. What is P2P Crowd Funding – they are a debt/loan and is investment is raised by using a large number of investors. When sourcing larger investment amounts using Crowd Funding I like to advise to clients that they use a platform where other similar business models have been successful and use it for a smaller amount than they need to raise more PR awareness of their product or service. We originally worked with Funding Circle and have added others to our Portfolio of platforms that we trust and has worked for our members. Equity Crowd Funding is where Investors hang out to invest in your business model in return for equity/shares in your business so know and be prepared what you are comfortable to give away. We enjoy working with Crowd Cube who have over 200,000 investors awaiting for you to upload your business idea. There are many more innovative platforms springing up in the UK and some from our Nordic cousins who we will be working with in 2016 who I feel offer a fresher approach to this model of raising investment. Some even offer both loan and investment on the same platform as does Invesdor our new Partner for 2016. This company even supports your preparation for Crowd Funding and directs and guides you. www.invesdor.com This industry in the UK was worth £3.2b in 2016 and they predict it will even treble in 2016. Even though Seders hit the 100million mark invested by Feb 2016 since June 2012 and 38000 businesses from early stage to growth having been invested. In my view this is the reasons below re TAX RELIEF as below to use their platform. SEIS The first scheme, the Seed Enterprise Investment Scheme (SEIS), encourages investment in qualifying new seed-stage startups companies by providing individuals with 50% of their investment back in income tax relief. Plus, in the 2014/2015 tax year investors can benefit from 50% capital gains tax relief on gains which are reinvested in SEIS eligible shares. Also,
  • 2. any gain arising on the disposal of the shares may be exempt from capital gains tax, and loss relief is available if the disposal results in a loss. EIS The second scheme, the Enterprise Investment Scheme (EIS), is designed to encourage investment in qualifying slightly later-stage companies by providing investors with up to 30% of their investment back in income tax relief. Plus investors can defer any capital gains tax on gains which are reinvested in EIS eligible shares, gains arising on the disposal of the shares may be exempt from capital gains tax, and loss relief is available if the disposal results in a loss. UK tax payers should note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. To learn more about how SEIS or EIS works, please read the online HMRC guidance or contact your professional tax advisor. These schemes provide great incentives for UK taxpayers who are either active investors or are just looking to support their friends and family in their entrepreneurial projects. Many Seedrs campaigns are looking to raise investment under one of these schemes and are identified as eligible with a small SEIS or EIS logo. Seedrs offers a simple and straightforward way to invest in a wide range of SEIS and EIS eligible companies and we take care of all the paperwork to help investors claim back their reliefs. It gives you the ability to raise money from a collective group of people who are connected through the internet and want to support your project. And it's extremely popular these days. But before you dive into your first campaign, it's important to determine which of the many crowdfunding sites is right for you. Let's explore the top five crowdfunding platforms for entrepreneurs and businesses in terms of popularity, types of projects funded, and other basic information so you can choose the best one for your business. The Benefits of Crowdfunding First off, you may wonder why you would want to use a crowdfunding platform to launch and fund your project. Here are a few reasons to consider. ï‚· You don't have to give away control, a stake in your company, or future revenue in exchange for funding (like on Shark Tank for example). ï‚· Crowdfunding your idea will force you to set achievable goals and hold you accountable for meeting them. ï‚· People love to share and tell their friends about projects they've backed and major media outlets tend to report on crowdfunding success stories.
  • 3. So whether you need the funding for your business or not, crowdfunding may be a good option for generating buzz about your idea. In addition, the fact that you will get a strong customer base right from the start is also a big plus. Now, let's look at the top crowdfunding websites for entrepreneurs and businesses. Note that some popular crowdfunding sites were left out of this post because they are only for non-profits and causes vs. businesses and retail product development. Kickstarter Fees: 5% if you meet your goal plus payment processing fees. Payments: Amazon Payments Categories: Art, Comics, Dance, Design, Fashion, Film, Food, Games, Music, Photography, Publishing, Technology, and Theatre Kickstarter is the most well-known crowdfunding platform for people in the US and UK. Since it launched in 2009, they have helped connect backers with 42,000 projects for a total of $649 million raised. According to Quantcast, their website receives 9.9 million visits per month globally, which is no doubt a contributing factor as to why so many Kickstarter projects get funding. The most funded project to date is the Pebble, an e-paper watch for iPhone. Their goal was $100,000 and they received over $10 million from 68,929 backers. Once nice part about using Kickstarter is there are a lot of resources on how to create a successful campaign. You can start with our guide to running a successful Kickstarter campaign. You can also see some great examples of successful Kickstarter campaigns on Inc and read Mint's guide to a successful Kickstarter campaign. To boost the visibility of your Kickstarter, refer to 21 Places to Promote Your Kickstarter Campaign and 30 People to Promote Your Kickstarter Campaign. When your campaign is successfully funded, you can read about how to fulfill orders for your Kickstarter backers using Shopify. Indiegogo
  • 4. Fees: 4% if you meet your goal, 9% if you don't plus payment processing fees. Payments: Paypal, ACH, Wire Transfer, or FirstGiving Categories: Art, Comic, Dance, Design, Fashion, Film, Gaming, Music, Photography, Theatre, Transmedia, Video, Writing, Causes, and Entrepreneurial (Food, Small Business, Sports, and Technology) Indiegogo is a worldwide crowdfunding platform that supports businesses, artists, and non-profits. They launched in 2008 with the goal of making sure that anyone, anywhere could have their dreams realized. The most funded project to date is the Let's Build a Tesla Museum. Their goal was $850,000 and they received $1.3 million from 33,253 funders. Be sure to read Indiegogo's Crowdfunding Tips for Campaigners that covers everything from getting started to after the campaign ends. You can also find a year in review of successful Indiegogo campaigns on Mashable. RocketHub Fees: 4% if you meet your goal, 8% if you don't plus payment processing fees. Payments: Secure Check or Digital Payment
  • 5. Categories: Art, Business, Science, and Social RocketHub is a worldwide crowdfunding platform that gained exposure through the A&E networks. They have empowered businesses, governments, educators, and communities in over 1,500 projects and are the leaders in crowdfunding education. Currently, the most funded project to date is Extra Credits, a show about game design and the good games do. Their goal was $15,000 and they received $153,000 from 3,824 funders. No matter what crowdfunding network you use, be sure to look at RocketHub's Success School for insider knowledge and tools that can help you achieve your goals. Fundable Fees: $99 per month during active campaigns plus payment processing fees. Payments: WePay Categories: Startups Fundable is a crowdfunding platform that allows startups to offer rewards or equity in exchange for funding. According to the site, startups that offer rewards typically raise up to $50,000, whereas startups that offer equity usually raise more. The most funded project to date is DecisionDesk, an application tracking system for educational institutions. Their goal was $1.25 million and which they met. If you decide to run a Fundable campaign, refer to their blog post on gearing up for a successful crowdfund. Crowdfunder
  • 6. Fees: 5% if you meet your goals plus payment processing fees. Payments: Amazon Payments Categories: Advertising to Wholesale Crowdfunder is a crowdfunding platform for US based businesses with a product or service. They help connect your business to their local networks of 20,000 entrepreneurs and investors. The most funded project to date is It's For Life, a company producing consumable and convenient health products. Their goal was $7,500 and they received $12,000 from 44 funders. Before you begin, visit the Crowdfunder Knowledge Center for 3 Steps to Campaign Success. You can also watch a Google+ Hangout with online and offline fundraising success strategies. How to Get Funded Regardless of which crowdfunding site you choose, here are some things you can do to make sure your campaign is successful. ï‚· Focus on creating a high quality, confident and convincing video. Most project profiles lead with a video and it's usually what people rely on when trying to decide whether to back a project. ï‚· Offer rewards that people will actually want. Put yourself in your customer's shoes when planning your reward levels and incentives. ï‚· Set a realistic funding goal. Crowdfunding websites are meant to give you the amount needed to cover your costs and get your project off of the ground, not to make you a millionaire. ï‚· Promote, promote, promote. Every day until the end of your campaign, promote your project everywhere and in every way that you can. We run Crowd Funding Campaigns for our members which cost as little at £950.00 using our email marketing tools complimented by our Social Media tools to feed your campaign posts into Social Media impacted releases all through www.gateway2digital.co.uk . A lot cheaper than hiring staff to implement this or outsource to Marketing companies. ï‚· Reach out to bloggers and reporters who write about similar crowdfunding projects. Depending on the type of campaign, you could receive mentions on major networks
  • 7. like CNN, Mashable, Techcrunch and others. These types of mentions can have a great impact on whether your project is successfully funded or not. ï‚· Product images are important and professional photography goes a long way. Images can easily go viral on networks like Pinterest and Reddit and Instagram driving even more traffic to your campaign TOP TIPS FOR EQUITY CROWD FUNDING – www.invesdor.com 1. Don’t crowd fund too soon – make sure you have traction – sales 2. Have a video of 3-5 mins 3. Pitch Deck – slides 12 min 4. Have a justified valuation 5. Measure your traction against KPIs 6. Test the market – email marketing campaign to your raving fans 7. Be careful of FSMA – selling of shares to potential high net worth investors 8. Keep it simple 9. Have a one-line strap line to introduce your concept 10.Don’t get side tracked from making it too PR salesie 11.Aim to have at least 30-50% raised before going public – Invesdor support your journey of 30% 12.Justify your Q/A’s be prepared 13.Meet your Investors in person if they request 14.Have your Investors sign a NDA 15.Be honest and be you – have a personality 16. OUR OWN INHOUSE CROWD FUNDING TEAM TO SUPPORT We have within our Finance Relationship Team Experts that can source the right type of Crowd Funding platform for you and we prepare for this platform as we know how to as supported X in 2016 raise £3.2m equity Crowd Funding – NW technology/data. From September 2016 we will be running a FULL DAY WORKSHOP London Manchester on ‘RAISING FINANCE/INVESTMENT to start/grow a business – including our Guests Invesdor our Crowd Funding Partners. Email us to reserve a place. Karen Melonie Gould CEO/Founder www.gateway2enterprise.co.uk /karen@gateway2enterprise.co.uk