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Crowdfunding for Women: The Capital Raising Equalizer

  1. Crowdfunding for Women: Capital Raising Equalizer By Jessica Sun, CEO RCTV Manolis Sfinarolakis, Founder RCTV
  2. Purpose  Gain a better understanding of what crowdfunding is  Introduce you to the 9 stages of crowdfunding  Understand the difference between Rewards, equity, and debt based crowdfunding  Motivate you to use crowdfunding to achieve your business goals  Understand how Women led crowdfunding campaigns have a high success rate compared to traditional financing means
  3. Ground Rules  Participate  One conversation at a time  Cell phones off during class  No laptops  Ask questions  Respect others’ opinions  Respect confidentiality
  4. Introduction to Founders Jessica Sun ➢ CoFounder & CEO, Reality Crowd TV Media Corp. ➢ Brand Management, Marketing, and Brokerage Operations experience in multiple industries ➢ Educated/consulted multiple crowdfunding campaigns on what crowdfunding is and the process around it ➢ Attended multiple crowdfunding events to get the mission of our company out there and further educate people on Crowdfunding ➢ Education experience with the NYC Department of Education. Created curriculums for both Math and Science Classes ➢ Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S-1 documentation for broker/dealer that raised 1.2 billion during IPO. ➢ BA in Math, Finance, and Economics from Binghamton University
  5. Introduction to Founders Continued Manolis Sfinarolakis ➢ Founder, Reality Crowd TV Media Corp. ➢ Member of Crowdfunding Professional Association (CfPA), Crowdfund Intermediary Regulatory Advocates (CFIRA), and National Crowdfunding Association (NLCFA) ➢ Multiple speeches given on the topic of Crowdfunding in states across the U.S., including Connecticut, New York, Georgia, Denver, Seattle, Texas, Washington D.C., and Florida ➢ Insurance Industry experience with The Hartford Insurance Group within the Internal Audit Department. ➢ Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S-1 documentation for broker/dealer that raised 1.2 billion during IPO. ➢ BS in Business Administration, Concentration in Accounting from University of Connecticut
  6.  “Crowdfunding is converting social capital into actual capital through the internet.”
  7. Crowdfunding is growing rapidly
  8. The 9 Stages of Crowdfunding  Successful campaigns take at least 3 months of pre-launch activities before they launch their project (to go into detail later in the presentation):  Business Planning  Intellectual Property  Social Media  Public Relations  Campaign Strategy  Networking  Team Building  Website Development  Profile & Video
  9. Donation Based Crowdfunding  Used mainly by charities, medical emergencies, or natural disasters.  Top websites used for donation based crowdfunding:  YouCaring.com  DonorsChoose.org  No rewards offered, straight donation.  Must have a compelling story that inspires action.  Highly dependent on social capital and relationships.  Amplified by PR and Social Media execution ahead of time.  If 501(c)3, tax benefit to the donors.
  10. Rewards Based Crowdfunding  Contribution in exchange for a reward. Used by many different non-profits, businesses, artists, film makers, and entrepreneurs. The crowdfunding of choice for Startup companies. Capital raised without giving up equity / taking on debt!  Top websites used for rewards based crowdfunding:  Kickstarter.com  IndieGoGo.com  Highly dependent on social capital and relationships.  PR is most important, followed by social media.  Video must be top notch to tell a compelling reason why they should invest in the person’s project, especially if it is a for profit enterprise.  Must reach 30% of funding within the first week of the campaign (90% success).
  11. Equity Based Crowdfunding  Investment in exchange for equity. Title II, Title III, and Title IV of the 2012 JOBS act.  Title II allows for the general solicitation of Accredited Investors for investment in small businesses via the internet / crowdfunding websites.  Title III will allow for the general solicitation of Un- Accredited investors for investment in small businesses via the internet / crowdfunding websites.  Title IV allows for general solicitation of both Accredited and Un-Accredited investors, however, it is state by state crowdfunding and takes months to close.  Top websites used for equity based crowdfunding:  Angellist.com  Realtymogul.com
  12. Debt Based Crowdfunding  Investment in exchange for bond. Title II, Title III, and Title IV of the 2012 JOBS act.  Title II allows for the general solicitation of Accredited Investors for investment in small businesses via the internet / crowdfunding websites.  Title III will allow for the general solicitation of Un- Accredited investors for investment in small businesses via the internet / crowdfunding websites.  Title IV allows for general solicitation of both Accredited and Un-Accredited investors, however, it is state by state crowdfunding and takes months to close.  Top websites used for debt based crowdfunding:  Patchofland.com  LendingClub.com  CircleUp.com
  13. Video?
  14. Successful Women led Crowdfunding Examples  Case Study: Bia Sports Watch: https://www.kickstarter.com/projects/956860865/bia-the- first-gps-sports-watch-for-womenby-women? ref=nav_search Case Study: Knix Wear, High Tech Underwear https://www.indiegogo.com/projects/knix-wear-high-tech- multi-tasking-underwear Case Study: OUYA, A new kind of video game Counsel https://www.kickstarter.com/projects/ouya/ouya-a-new-kind- of-video-game-console?ref=nav_search
  15. Women and Crowdfunding Statistics  On Kickstarter, where backers make contributions in exchange for rewards, women-led companies account for less than 10% of technology projects. But roughly two-thirds of women-led technology ventures reached their fundraising goals versus just 30% of technology ventures with male founders  Women are 13% more likely than men to meet their Kickstarter goals  Women often succeed in crowdfunding because other women activists often support women campaigns.  Women are 61% more likely than men to meet their financial targets on its site, Indiegogo Inc. says  Women account for 44% of Kickstarter backers
  16. Top Crowdfunding Platforms  1. CrowdHelps: CrowdHelps is a Crowdfunding site for Women. Women from around the World can raise money online for any life situation  2. Buzzbnk: A UK platform that supports social entrepreneurs and innovators. “Positive People Backing Bright Ideas.”  3. StartSomeGood: StartSomeGood empowers “social innovators,” and forwards the trend of social entrepreneurship. It is a relatively new social site.  4. Crowdrise: Named the “Top 25 Best Global Philanthropist.” Since 2009, Crowdrise has helped bring together volunteers and philanthropists to spread the call of service.  5. Kickstarter: A project crowdfunding website that any organization or individual can use to finance their event or project.  6. Indiegogo: An international crowdfunding site for creative types that can also be used to raise money for charity and non-profit organizations.  7. Rockethub.com: A crowdfunding platform used by all types of organizations and individuals ranging from scientists to philanthropists.  8. Pozible.com: An Australia-based website that encourages creative projects and ideas. This website can also be used for charity purposes.
  17. Workshop Activity  Get into groups of 4 (We can get into groups based on industry).  A. Discuss ways you can utilize crowdfunding to get your cause to reach your target audience  B. Discus project ideas. What types of campaign can you use crowdfunding for?  C. What are some obstacles you are facing now? Can crowdfunding help?  D. What are some ways you tried to get funding? Come up with ideas how you can utilize crowdfunding to enhance these ways. We will then come together and discuss as a group.
  18. Questions?  Our contact information: Email: Info@realitycrowdtv.com Website: www.realitycrowdtv.com Phone: 203-232-2462
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