This investment deck proposes using crowdfunding to raise funds for school music programs. It outlines the problem of declining funding for music education programs and presents crowdfunding as a solution. The business model involves Fund Music Ed keeping 10% of funds raised and selling merchandise as rewards. The deck details traction from an alpha test raising $8,200 and plans to increase engagement through student-focused peer-to-peer features. It seeks a $1.1 million seed round to scale the platform nationally.
1. Investment Deck - June 4, 2014
) for Music EducationCrowdfunding (i.e.
Contact: Chris Purifoy | chris@fundmusiced.com | 615-722-7106
Legal Notice: This overview is for informational purposes and is not an offer to purchase or sell securities.
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2. Chris Purifoy
CEO, Tech Lead
Founder of Innovate School Music.
www.linkedin.com/in/chrispurifoy
Rick Hack
President
Former VP Entertainment for CBS Radio.
www.linkedin.com/in/rickhack
Founding Partners
Kelli Richards
Advisor
Former Director of Music & Entertainment
for Apple Inc.
www.linkedin.com/in/kellirichards
Marina Terteryan
VP Marketing & PR
Former PR Director for Alfred Music Publishing Co.
www.linkedin.com/in/marinaterteryan
Cole Thornton
SEO, Online Ads
CEO Gadget Grave, Founder Buy My Phone.
www.linkedin.com/in/colethornton
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3. School Music Programs have decreased
by 50% in the last 5 years.
Funding for the arts in schools is the #1
problem facing music education today.
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4. Music students regularly go on to
live successful & creative lives. You
would be surprised how many of
our world’s leaders and innovators
were also musicians.
!
Our next generation of leaders are
missing out on the benefits that
come naturally to music students.*
• Discipline
• Teamwork
• Math skills
• Creative skills
• Many other benefits
How Music Education Affects the
Future of Our Global Economy
*See the University of Kansas Study
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5. Unlike other online fundraising methods, crowdfunding is proven
and growing rapidly (see page 6). Crowdfunding allows each school’s
community to donate online, while also receiving one of several
tangible rewards for themselves.
!
The secret that makes crowdfunding so successful is its appeal to the
pledger’s altruism and self interest equally. Because of this, it has
become one of the fastest growing trends in technology.
Crowdfunding - A Proven Solution
to Solve a Timely Problem
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6. The Crowdfunding
Market at a Glance
• Crowdfunding Platforms raised $2.8 billion in
2012 – an 81% increase over 2011.
• The industry grew to $5.1 billion in 2013, and
it is expected to triple in 2014 with new
crowdfunding legislation passing (Jobs Act).
• Social Causes drive close to 30% of all
crowdfunding activity.
• The music education market is wide open for
disruption without competition.
See the 2012 Crowdfunding Industry Report
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Why Investors are pouring millions
into crowdfunding @CNNFortune
7. Business Model & Revenue Opportunities
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• Fund Music Ed (FME) keeps 10%
of all funds raised by schools.
• FME acts as a merchandise vendor
by providing turn-key items for
pledge rewards.
• Schools that are successful will
repeat usage each year or multiple
times a year.
9. Traction & Milestones
Preregistration (Lean Tests)
• 146 schools preregistered to raise $1.4M in budgets in a 3 day
marketing test to our existing Facebook network in November,
2013 (only $36 spent marketing).
• 132 schools preregistered at the NAfME National Conference in
November, 2013 (budget size was not gathered in this study).
!
World Class Development on a Shoe String
• A fully functional crowdfunding portal was built and branded
without fundraising between Dec 2013 - Feb 2014, with 90% of
Kickstarter’s features and a top level dashboard for admins.
!
5 School Private ALPHA Pilot
• FundMusicEd.com launched a pilot in March, 2014.
• $8,200 was raised for music education in the 4 week trial.
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10. Leverage Existing Network
Innovate School Music provides Fund Music Ed with unlimited free access to their
membership & network outlets targeting 17,000 schools. Distribution channels
include: email lists, social media, conferences, blogs, newsletters and webinars.
!
Proven Online Ad Techniques
Two of Fund Music Ed’s founders are experts in SEO, Facebook & Google Ads.
These proven techniques were used to grow a business from a $12k startup fund
to $4M in sales.
!
Referral Programs
A referral program will reward music education organizations with a 1-3% margin
of funds raised by schools they refer. This will enable those most passionate
about music education to work together for the common good, by providing
affiliated music ed orgs with funding to run their programs. i.e. 50 State Music
Education Associations, Manilow Music Project, Bands of America, etc..
Creating Awareness &
Adoption for Local Schools
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11. Learnings & Plans to Increase
the Daily Pledge Average
Our spring pilot taught us that there is a need for incentivizing
students to maintain campaign momentum. We are designing
new Peer-to-Peer Crowdfunding features to motivate students and
parents to participate and increase the daily pledge amount.
Peer-to-Peer Crowdfunding:
• Students have an individual goal as a subset of the school’s goal.
• Prizes are given for every student who completes their goal.
• Prizes get bigger for doubling their goal, tripling and so on.
• The student who raises the most receives a grand prize.
• Mobile apps help students share online, create short promo videos,
pick out prizes, and see where they rank among other students.
• Individual student goals will motivate parents to help their
students win, by sharing their student’s individual page with co-
workers and extended family.
!
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12. *All revenues are based on the daily pledge amount per school from our March, 2014 pilot.
*
Revenues for Music Education &
These projections reflect a conservative growth rate of 10 new schools per
week. Our 5 year target represents only 16% of the schools in our partner’s
existing membership & network.
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13. Seed Investment Round
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Fund Music Ed is seeking up to $1,100,000 to
scale its offerings, with a minimum of $150,000.
!
Funds will be used to finalize state registrations,
build mobile & student incentive components,
employ a small management team, and scale
the Fund Music Ed platform in the United States.
!
A subsequent Series A investment round may
also be used to scale this important technology
to school music programs worldwide.
14. •We have a world class team that knows how
to plan, test assumptions, and execute.
•We already have over 1/4 of the entire US
school market in our personal network and
almost all of them in our extended network.
•The need is dire.
•The solution works.
Why We Win,
& Music Education Wins
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15. ) for Music EducationCrowdfunding (i.e.
Contact: Chris Purifoy | chris@fundmusiced.com | 615-722-7106
Legal Notice: This overview is for informational purposes and is not an offer to purchase or sell securities.
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