Crowdfunding & Crowdsourcing

Crowdfunding &
Crowdsourcing
www.phronesisstrategies.com

Copyright © 2014 PHRONESIS STRATEGIES. All Rights Reserved www.phronesisstrategies.com 2
June 2014
PHRONESIS STRATEGIES
103, Ghatate Chambers
Panchsheel Square,
Nagpur – 440012
INDIA
T: +91 712 2454809
E: contact@phronesisstrategies.com
DISCLAIMER

This publication contains general information only and is based on the experiences and research of PHRONESIS STRATEGIES consultants. PHRONESIS STRATEGIES is not, by
means of this publication, rendering business, financial, investment or other professional advice or services. This publication is not a substitute of such professional advice and
services and the user of this publication should consult a PHRONESIS STRATEGIES consultant before making any decision. The user of this publication is solely responsible for
outcome of any decisions based on information contained herein. PHRONESIS STRATEGIES, its owners, consultants or its associates make no representations or warranties
regarding accuracy and completeness of such information and expressly disclaims any liabilities based on such information or on omissions therefrom. The user of this
publication specifically agrees and acknowledges that all proprietary rights in the information available on this publication for all times shall remain the property of
PHRONESIS STRATEGIES. Reproduction, redistribution and transmission of any information obtained from this publication, in any form, is strictly prohibited.

This presentation was delivered on 1st June 2014 at Vidarbha Management
Association (VMA) and is intended for Internal Circulation only

Copyright © 2014 PHRONESIS STRATEGIES. All Rights Reserved www.phronesisstrategies.com
USD 5.1 Bn
3
Appx. Amount raised through Crowdfunding in 2013
(Source: http://www.crowdsourcing.org/editorial/crowdfunding-industry-trends-and-statistics-infographic/25662)

Copyright © 2014 PHRONESIS STRATEGIES. All Rights Reserved www.phronesisstrategies.com 4
Crowdfunding

Copyright © 2014 PHRONESIS STRATEGIES. All Rights Reserved 5
Types of Crowdfunding:
Ø  Reward based (43%)
Ø  Donations based (29%)
Ø  Equity based
Ø  Lending based
(Source: http://www.crowdsourcing.org/editorial/crowdfunding-industry-trends-and-statistics-infographic/25662)

Pebble Watch
§  Category: Technology
§  Target: $ 100,000
E-Paper Watch for iPhone & Android
Funding Received:
$ 10,266,845
(Source: Kickstarter)

OUYA
§  Category: Gaming
§  Target: $ 950,000
A new kind of video game console
Funding Received:
$ 8,596,474

The Grand Theft Orchestra
§  Category: Music
§  Target: $ 100,000
Amanda Palmer
Funding Received:
$ 1,192,793

But that seems to be a
global phenomenon..
What about India?

Fin
§  By: Kochi based Startup
Wearable Bluetooth Ring;
Allows to control up to 3 devices at a
time remotely
Funding Received:
$ 200,000
(Source: Sachitanand, R. (2014) “Not yet a madding crowd”, The Economic Times - Sunday Magazine)
Other benefits:
300 distributors, 40+ investors
& at least dozen manufacturers
interested

Gecko
§  By: Bangalore based Startup
§  Target: $ 50,000
Bluetooth tracking tool;
Allows to track keys, wallet, children,
pets, medicines etc., play music
remotely or act as camera trigger
Funding Received:
$ 135,410
Other benefits:
§  Flooded with 7,500 pre-orders
§  Got interest of Apple co-
founder Steve Wozniak

Lucia
§  Category: Films
§  By: Director Pawan Kumar
Kannada movie
Funding Received:
INR 71 Lakhs
from 600+ backers
§  Was a Hit
§  Later sold rights to Udaya TV
for INR 1 Cr

Sochi Winter Olympics
(Source: http://articles.economictimes.indiatimes.com/2014-04-21/news/49290737_1_yuki-bhambri-vikas-gowda-lakh)
§  Category: Sports (Luge)
§  By: Shiva Keshavan
(India’s first representative to compete in the
‘Luge’ sport at the Sochi Winter Olympics)
Funding Received:
INR 10 Lakhs

The Platforms
Global
& 500+ more
Indian
& several others

The Rewards
What Backers look for:
§  What it is you are trying to do
§  How you will do it
§  How the funds will be used
§  Your qualifications to complete this
project
§  The identities of the people on your
team (if you have one)
§  How far along your project is
The more information you share, the
more you will earn your backers’ trust.
Creating a Video raises the chances of
funding success
Can be anything,
all on your imagination.
Some examples of rewards:
§  First chance to pre-order
§  Discount/ Free products
§  Copy of CD, Limited edition of comic,
§  Print from the show, Visit to the set
§  Naming a product/ component after
the backer
§  Personal phone call
§  Autographed Photos
§  Any experience engaging the backer
more with the product etc.
People back projects that are exciting, creative, disruptive innovations or
carries the potential to change the industry or society, and NOT projects
that may be financially attractive but have little impact on the world

What is Crowdsourcing then?

Creater: D. Udaya Kumar – Associate Professor, IIT Guwahati

Has received over 6 million submissions over 70 years

Brainstorming session @ VMA

Crowdtesting – Testing of Mobile Apps
Platforms:
§  Passbrains (7,500 testers, adding 300-500 testers every month)
§  99tests.com etc.
Why?
§  Much less time
§  Around 50% cheaper
Who’s using it?
§  Mindtree
§  Flipkart
§  Ibibo
§  Cleartrip
§  Foodpanda
§  Babyoye etc.

“My firm belief is that for 95% of Indians, even Rs.
51,000 is good enough to achieve a dream and asking
for Rs. 51 as contribution from 1,000 people to start
and do something new is easier than making business
proposals and definitely better than killing their ideas
due to lack of money”
- Ateet Bajaj – Founder, Start51.com
Thank You!!
VYOM SHAH

M: +91-9158852515

E: vyom.shah@phronesisstrategies.com

http://www.facebook.com/PhronesisStrategies
http://www.linkedin.com/company/phronesis-strategies

Crowdfunding & Crowdsourcing

Recommended

Recommended

More Related Content

Similar to Crowdfunding & Crowdsourcing

Similar to Crowdfunding & Crowdsourcing (20)

Recently uploaded

Recently uploaded (20)

Crowdfunding & Crowdsourcing