Etienne Longdot's presentation on the pros and cons of Crowdfunding held at WBIS 2014

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CROWDFUNDING WBIS
Wbis 2014 – München – ELO - AGENCY

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SHOW ME THE MONEY
All purposes
CREATIVITY
EMOTION

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CROWDFUNDING

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THE POWER OF THE CROWD
THE POWER OF SOCIAL
MEDIA

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CROWDFUNDING
PLATFORMS

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BASIC MECHANISM

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HOW IT WORKS - METHODOLOGY
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Register on a platform
Work out the rewards (becomes ambassadors)
Design your pitch
Upload a video
Access any support
Campaign lasts 30-90 days
Use all your networks
Use the forum and updates
If you reach your target you receive the money.
Thank donors
Complete the project
Send out rewards

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LEGAL
AMOUNT = COUNTRY RELATED
FORMS:
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DONATIONS & REWARDS
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LOANS ( Bank licence – Be )
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REVENUE SHARING ( Bank licence – Be )
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EQUITY FUNDING ( Bank licence – Be )

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EXAMPLES

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DI ZABBIA LIMONCELLO
BIOLOGICAL PRODUCT
SILVER MEDAL / International Wine & Spirit
competition.
Amount : 20000 Eur
REWARDS:
•Large ambassadeur / return on investment in 2
years
•Baskets filled with Lemoncello
•Italian dinner with founders
•Discounts buying bottles
•Cocktail events

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WINE NETWORK
SOCIAL WINE APP
Social network based on taste & not price
Giving advise on demand about wine to buy.
Amount : 470000 Eur
REWARD:
Equities based crowdfunding campaign ( 54
founders/870 eur each).

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Start It Up – Fermenting egg.
EGG FOR FEERMENTING GRENACHE BLANC
Amount : 2350 Eur ( 44 backers)

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Survival of a Liquor - Store
MOVING COST
Amount : 100000 Eur
REWARDS:
Vip basquet
Return on investment after 2 years : 1000 = 1200
Eur
Discount
Equities

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Crushpad Crushes Grapes, Not the Little
Guy: Crowdfunding Your Next Merlot
CROWDFUNDING PLATFORM
The program is designed to help individuals and companies
interested in creating small wine brands raise money
through crowdfunding. Crushpad also takes care of the
licensing, sourcing, legal compliance, and other paperwork
that is associated with syndication.
Since its launch in 2004, Crushpad has created 5,000
different wines and grown into the worlds largest producer
of custom wines, focusing on small brands that want to
produce between 25 and 100 cases a year Over 200 wine
brands have been successfully launched since the
Crushpad Commerce program began. With the introduction
of crowdfunding via Syndicate, that number is expected to
grow rapidly in the coming years.

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Little Gems Wine Ltd (1)
Our aim is to benefit both buyers of wine and the
small vineyards in regional France who make really
good wine but lack marketing and sales systems.
Living in France the founders realised that there
are many small very good vineyards that are never
found by buyers in the UK .
Crowdfunders get the first opportunity to receive
some of our specially selected wines in the reward
funding offers and to become a member of the
Little Gems Wine Club with regular special offers
and news of events.

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Little Gems Wine Ltd (2)
Amount : 18000 pounds
PLEDGE £25.00 OR MORE: Bottle of specially selected Bordeaux red wine
for you or for you to send as a present to someone else.
PLEDGE £100.00 OR MORE : £100 you get a discount of 10% on any and
all wine orders you place with us for the next two years.
PLEDGE £130.00 OR MORE : case of wine valued at £180 for £130
delivered to your home.
PLEDGE £200.00 OR MORE : £200 you get a discount of 15% on the cost
of the wine you order for the next two years.
PLEDGE £300.00 OR MORE A discount of 20% on the price of any wine you
order from us in the next two years for a pledge of only £300
PLEDGE £500.00 OR one wine tasting each year for two years.
PLEDGE £1000.00 OR MORE 0 A five day visit to vineyards in south west
France with tastings. Bed and Breakfast accommodation and transport in
France provided. Plus one case of wine delivered to your home in the UK.

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GOOD TO KNOW ……..

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IMPORTANT
- set up or prime your social networks
in before launch
- actively manage the campaign
- how else can you reach
people
to reach target - connect with your
donors
- try again

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Crowdfunding a feature film about Etna
wines on Sicily: Maine’s Vite
They make excellent wines on Etna on Sicily. They also have a
very unique and spectacularly beautiful landscape. I am
not sure if they are good film-makers but they probably
are. A new feature film, in production, aims to celebrate all
this while also entertain us. It is a crowdfunding project
called Maine’s Vite.
The aim of the film is to ―celebrates Sicily and the Etna region in
particular, for its people, wine and contemporary agriculture‖. I
have been to Etna a few times and will be going back there in
October this coming autumn. I can attest to that they do make
very good wines and have a landscape that is beautiful and
certainly spectacular. But each time I have been there it has
been overcast so I have not yet seen the top of the volcanoe.
Hope that will change in October

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Portal Algorithms: Understanding Project
Placement
Most crowdfunding portals outline the basic steps for
success, yet even when followed, many projects never
find their way onto the website’s featured page.
Although some websites like Indiegogo have kindly
explained the algorithm used for project placement, a
lot of portals’ internal algorithms are still kept secret
from the public. Looking at popular traffic and project
data, however, crowdfunders may gain a better
understanding of what it takes to land a project on the
first page.
Another factor to consider, which also relates to
choosing the right portal, is how well a campaign fits in.

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What happens: When crowdfunding leads
to overfunding?
There are ways to turn a negative into a positive.
Stretch Goals, for one, are a great way to raise
additional funds safely, so long as they have been
well-planned and initiated. Never leave a variable
undetermined as overfunding amplifies such
uncertainties. Know exactly how much you need so
that you can identify when your campaign reaches
full-capacity. Remember to always plan ahead,
anticipating the very best and worst outcomes for
your campaign.

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Perfect the Equity Crowdfunding Pitch
A lack of specificity may push investors away and
tank the whole campaign. While it’s necessary to
have an emotionally moving introduction, there
must be a place for the hard data. The use of
positive language during this process is an
absolute must.
Include: ( = Business Plan)
An overview of the business model, Obstacles and
risks, Market demographic, Management team,
The product or service, Market competition

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How to Get Your Crowdfunding Supporters
To Market Your Campaign!
How to get your supporters to market your
campaign for you.
Lucky for us project creators and crowdfunders, these are the benefits that
supporters truly want as well.
1.Status
2.Access
3.Power
4.Stuff

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How to Get Your Crowdfunding Supporters
To Market Your Campaign!
1.Status
Backing a project on kickstarter (or any
crowdfunding platform) carries with it an earlyadopter status symbol. ―I helped that project
come to life,‖ or ―I supported that before it was
available to anyone,‖ are common phrases with
those that perceive crowdfunding as a status.
Creating badges and medals provide a symbol
of one’s Status
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How to Get Your Crowdfunding Supporters
To Market Your Campaign!
2.Access
Early Beta access to a web-app, online community,
or product development are some of the common
rewards that project creators use to create access.
Plays, music albums, and concerts also grant
special vip access or early access to the project as
a way to entice supporters wanting additional
access. Dinner with the creators or a night on the
town with the founders are some higher-end
special access rewards.

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How to Get Your Crowdfunding Supporters
To Market Your Campaign!
3.Power
Moderators, final-edit voting, and even creation of
new reward tiers of projects create the feeling of
power that backers can find appealing. The power
to persuade the direction of the project can also
coupled with status symbols.

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How to Get Your Crowdfunding Supporters
To Market Your Campaign!
4.Stuff
Not all crowdfunded projects are successful in their
funding. Even the successful ones can ship late or
never ship at all. T-shirts, hats, mugs, and other
swag are poor persuaders of backers rewards.
Unless the brand has a significant culture that it
brings along to a crowdfunded project, don’t expect
to sway people outside of your own network with a
T-shirt.
In order for the status, access, and power to be of
any perceived value, there must be people to
perceive it. The more people there are to perceive
it, the higher it’s perceived value

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The Importance of Social Media
Crowdfunding Can Not be Stressed
Enough!
It cannot be stressed enough: social media is one of the most
important aspects of crowdfunding. Managing several
different accounts across the web takes time, but it’s a
necessary step towards success
For crowdfunders, there are a few staple websites to join.
These include Facebook, Twitter and Youtube. For
entrepreneurs, Google and LinkedIn are also advised.
There are a handful of tools one can use to increase their
social media presence, but there’s a few tricks unknown to
the average user. For example, consider offering loyal
followers and fans incentives through a social media contest

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Expand Your Network Using Crowdfunding
Meetups
In general, there are 130 active ―Crowdfunding‖
groups on Meetup. With over 27,182 members
from around the world, this is a massive network!
Similarly, under the ―Crowdsourcing‖ category,
there are 10, 782 registered members. Using an
alternate spelling, the category ―Crowd Funding‖
has 112 groups with 11,078 members worldwide.
Consider the fact that these Meetups are typically
free to attend — that’s a lot of opportunities to
make contacts without costing you a cent. To
create an event, however, plans start around $12 a
month, which is a small fee to pay considering the
network you unlock.

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Safe Crowdfunding: Protect Your Ideas!
Crowdfunding has been behind some of the most
innovative ideas of the last five years. But project
starters must still be wary of the dangers lurking in
the crowd. Businesses and artists that share their
ideas with the world are vulnerable to intellectual
property theft if they do not practice safe
crowdfunding
Patent Pending
Non-Disclosure Agreements
Understanding the Risks

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Beware: Five Common Crowdfunding
Mistakes!
1. Expectations.
When a project exceeds a realistic goal, the
chances of success drastically fall. Know your
project’s limitations and market value.
2 . Marketing.
Do not think that just because you’ve designed a
snazzy web-page, uploaded a video, and written
inspirational content that the work is done. One of
the most common crowdfunding mistakes is not
paying enough attention to.

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Beware: Five Common Crowdfunding
Mistakes!
3. Donations.
Large pledges are great, but never forget how
essential smaller donations are as well.
4. Branding.
Like a business, a crowdfunding project should
have a brand. Branding operates on various levels,
so put thought into web-design, logos, marketing,
and content.

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Beware: Five Common Crowdfunding
Mistakes!
5.Competition.
Unless you have a remarkably unique idea on
your hands, there are probably other
crowdfunders looking to finance a product or
service in a similar industry. This is why market
research is so important before a launch.

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GO FOR IT……!!!!.......
QUESTIONS?

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