Crowdfunding 101 Is Crowdfunding Right for You? Let's find out! - Caravanserai Project

Crowdfunding
101      Is Crowdfunding
           Right for You?
           Let’s find out!

1

The Caravanserai Project Webinar: Alternative Fundraising Tools – Online Crowdfunding

February 26, 2021

Mai Temraz
Blackstone LaunchPad Campus Director and Entrepreneur-in-Residence
Office of Technology Partnerships | University of California, Riverside

1   What is Crowdfunding

               2   Pros and Cons

     Today's   3 The benefits of Crowdfunding
Presentation   4   Is Crowdfunding the Right Fit for
                   You?

               5   Tips and Tricks

               6   Example and Q&A

What is Crowdfunding?

• Crowdfunding is a method of getting finance
  by sourcing small amounts from a relatively
  large number of people rather than getting
  large amounts from one or a few.

• Online crowdfunding allows individuals or
  organizations to source funds from anyone via
  a website or crowdfunding ‘platform’

DO YOU REALLY WANT TO CROWDFUND?

  PROS                                                    CONS

  1   Money for your project                              1   Time-consuming

      Learn who is interested in and will support your        Stressful
  2   work (might surprise you)                           2

                                                              Can be expensive once you take into account fees,
  3   Start building relationships and gathering data     3   rewards costs, your own time
      about supporters

                                                              Reputational risk associated with potential failure to
      An opportunity for a big marketing campaign & the       meet fundraising target, or worse failure to deliver
  4                                                       4
      benefits that can bring                                 project & rewards

The Benefits of Crowdfunding

 Reach                                      PR & Marketing                          Presentation
 Access to thousands of accredited          Share and promote your campaign         Go through the invaluable process
 investors who can see, interact            through social media, email             of looking at your business from the
 with, and share your fundraising           newsletters, and other online           top level
 campaign.                                  marketing tactics

                    Validation                                     Efficiency
                    Excellent opportunity to validate and          The ability to centralize and
                    refine your offering                           streamline your fundraising efforts

Are you ready?

          Why do
9 out of 10 campaigns fail?

The #1 reason campaigns fail is lack of preparation. It is pretty much
    impossible to compensate for lack of preparation once you go live.

    Have at least 30% of your funding goal guaranteed (3Fs)
1
    Build an email list
2
    Build a social media presence
3
    Press releases!!!
4

What’s out there?

“Help bring creative projects
                                       to life"
GoFundMe has a platform for
nonprofits –
GoFundMe Charity
https://charity.gofundme.com

free (no platform fees) and flex (3%
platform fee)
                                        Multiple options to find the
                                        right fit

Facebook Fundraising Tips

1   Reach out to supporters and ask them to organize fundraisers for you

2   Build your community and leverage your existing audience

3   Update your profile and page

4 Create solid content, focus on engagement and show appreciation

Questions to Ask Yourself?
• Are you open to having many investors?
• Is the requirement of your raise to have a strategic investor?
• Can the amount you need be realistically raised on CFP?
• Are you ready to daily promote and monitor your campaign?
• Do you have what it takes to stand out in the crowd?
• Are you comfortable with having your ideas out in the public?
• What is the timeline for your raise?

Challenges When Raising on CFPs

•   Choosing the right platform
•   Setting a realistic goal
•   Standing out among hundreds of projects
•   Missing the expertise of startup investors
•   Executing the project
•   Providing customer service
•   Keeping up the momentum
•   Understanding what the audience wants

Tips and Tricks
• VIDEOS make all the difference
• Tell a compelling STORY. Why are YOU the right person I should
  give my money to?
• UPDATE your supporters. Don’t go MIA on your supporters.
• Use the MEDIA, both social and traditional. Press releases are
  your friends.
• DO NOT IGNORE FEEDBACK. Even if you do not make the
  target, you just got yourself a free market validation.

Examples

Blue Social: $1.070M raised. Based in Riverside.
https://republic.co/blue

Back Porch Homes: $158K raised. Based in Riverside and San Bernardino.
https://republic.co/back-porch-homes

Petri Bio: $110K raised. Based in Los Angeles.
https://wefunder.com/petri.bio

Relay: Active now. Based in Corona
https://republic.co/relay

Pharm Robotics: Active now. Based in Hemet.
https://wefunder.com/pharmrobotics

Is Crowdfunding for you?

1   Do your research
2   Plan your campaign
3   Prepare your content
4   Build your list of supporters

What do you need to prepare?

                                     Project
Strategy                Goals and     Plan
                         results

 Planning                           Updates
document                Emails

Questions