A small notes on Reward based crowdfunding

1. Faysal Ahmed
Co-Founder, Team 71
Software Engineer, TigerIT Limited
Reward based crowdfunding

2. Crowd Funding
 finance from backer
 "crowd“
 fund an initiative and usually occurs on Internet
platforms
 could be a nonprofit, political, charitable,
commercial
 Financial campaign for a startup company
 Example: kickstarter and indiegogo

3.  people or organizations that propose the ideas
and/or projects to be funded,
 the crowd of people who support the proposals
 Crowdfunding is then supported by an
organization (the "platform") which brings
together the project initiator and the crowd

4. Gamers as crowdfunders
 Gamers are tech savvy and have been early
adopters of crowdfunding platforms,
 using them to fund ideas for new games and
peripherals
 Crowdfunders of gaming don't expect a return on
their money
 are glad to help promote programmers working
on cool projects.

5. Type of crowdfunding
 Reward based
 Equity based
 Donation based
 Credit based

6. Reward based crowdfunding
 a source of funding for small businesses.
 looking for funding up on a crowdfunding portal,
 targeting a certain amount capital to raise.
 gives some type of incentive for participating

7.  by the end of 2013:
 People pledged $928 million to projects on
Kickstarter
 54,233 projects have been funded successfully
 5.4 million people have backed projects
 1.58 million people have backed more than 1
project
 12.8 million total pledges have been made
 Consulting firm, Deloitte estimated over $700 million
would trade hands on rewards-based crowdfunding
platforms.

8. How rewards-based crowdfunding
works
 Business or entrepreneur posts a project
available for funding up on a crowdfunding
platform with a set deadline
 special promotional videos are produced to help
get backers interested in the project.
 In return for backing a project, backers receive
different rewards depending on the amount of
funding they commit (defined by the business or
entrepreneur behind the project)

9.  Business and other supporters of the projects
share the project with friends and family
 Interested backers donate during the project,
sharing their activities over social networks
 If funding targets are hit before the project's
deadline, the deal "tilts" and monies are
exchanged, rewards are committed
 Typically, within the months following a successful
project funding, backers receive their rewards
(though research shows many of the rewards are
late in their delivery)

10. Examples of crowdfunding
projects
 Star Citizen, $35 million (video game)
 Ubuntu Edge, $19 million (smart phone)
 Pebble (watch)