Building your Crowdfunding Campaign
21
Rewards Based Crowdfunding Domenick Celentano ● http://www.domenickcelentano.com/ ● [email protected]
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Rewards Based Crowdfunding is more than capital 1. Provides Market Validation 2. Crowdsourcing your product development 3. Platforms have apps to help you value your company 4. Provides focus on Minimum Viable Product 5. Democratizes the funding process
Transcript of Building your Crowdfunding Campaign
Rewards Based Crowdfunding
Domenick Celentano ● http://www.domenickcelentano.com/ ● [email protected]
• Provides Market Validation• Crowdsourcing your product development • Platforms like Equitynet have apps to help you
value your company • Provides focus on Minimum Viable Product• Democratizes the funding process
Crowdfunding vs. Traditional Funding?
Crowd Incentives
IdentificationEmotion
Rewards(relevant and synergistic)
Crowd Contributions
FundingAttention Created by
Influencers
Buy-in Components(you can execute)
Crowdfunding – Rewards Based
CrowdfundingDon’t Start By Raising Money
How You Make Money… Consists of these 9 Areas
customer segments
key partners
cost structure
revenue streams
channels
customer relationshipskey
activities
key resources
value proposition
Business Model Canvas Courtesy of Steve Blank and Alexander Osterwald PhD
Start by Developing a Solid Business Model
Once you do this, you are ready to start Crowdfunding
Building a Crowdfunding Campaign
Building a Crowdfunding Campaign
•Planning
• Campaign starts months prior to launch
• Crowdfunding starts with you, your family and friends
• Must develop a social media strategy
• There is no single solution
•Planning
•It Social
• Develop Email List• Social Media• Blogger & Publication
Outreach• Schedule Press Release
Building a Crowdfunding Campaign
•Planning
•It Social
•Campaign elements
•Pre-Campaign
•Campaign
•Post-Campaign
Building a Crowdfunding Campaign
•Pre-Campaign
•It’s Social
•Awareness
• Project Management• Production & Content• Social Currency & Outreach
Building a Crowdfunding Campaign
•Pre-Campaign
•It’s Social
•Awareness
• Social Sharing • Marketing Events
Building a Crowdfunding Campaign
•Pre-Campaign
•Campaign
•Post-Campaign
• Wrap-up & Assessment• Program Implementation• Fulfillment &
Communications• Harvest Opportunity
Building a Crowdfunding Campaign
CrowdfundingMarket Validation
PreliminaryInvestigation
DetailedInvestigation Development Testing
ValidationFull
ProductionMarket Launch
1 2 3 4 5 6 7
Launch Plan Development
Adv/PR/Comm. Selection & Planning
Campaign & Promotion Planning
Distribution PlanChannel Mgmt Plan
Adv/PR/Comm.Promo
Execution
Market EvaluationTracking Research
Critical EvaluationPeriod
IdeationPost Implementation
Review
NEW PRODUCT DEVELOPMENT
NEW PRODUCT LAUNCHRobert Cooper New Product Development Stage Gate Model
Schneider Associates New Product Launch Stage Gate Model
Product DevelopmentProduct Launch
PreliminaryInvestigation
DetailedInvestigation Development Testing
ValidationFull
ProductionMarket Launch
Ideation
The Pitch
Project Name
Project URL
Elevator Pitch
Phase 2 – Development & Testing
Incentives (Rewards)
Funding - 30 Days - $35,000
Milestones
Updates
Product Development - Product Market Fit Validation
1 2 3 4 5 6 7
Launch Plan Development
Adv/PR/Comm. Selection & Planning
Campaign & Promotion Planning
Distribution &Channel Mgmt
Adv/PR/Comm.Promo
Execution
Market EvaluationTracking Research
Critical EvaluationPeriod
Schneider Associates New Product Launch Stage Gate Model
Phase 3 – Launch Support Costs
Incentives -
Funding – 30 Days - $45,000
Milestones
Updates
Product Launch - Market Validation
CrowdfundingRewards Based – A Pathway to Equity
• Think of it as your Capital Ladder• Start with Rewards campaign to building economic and
brand value in the venture without sacrificing ownership interests
• Gives you early market validation using your Minimum Viable Product (MVP)
A Pathway to Equity
Jason Kulik, Elizabeth Kulik, CoFounders Prohatch
“There have already been
companies on other CFPs that have closed traditional rounds following a successful reward
campaign.
We believe donation & reward crowdfunding models will play
just as important a role in strategic capital formation“
Ouya, a new open sourced gaming console Funded a $8.6M rewards campaign
Garnered 60K preordered units
9 months later
Kleiner Perkins led an additional $15M round
Largest institutional investments in reward-based crowdfunding campaign to date
A Pathway to Equity
ProHatch, www.ProHatch.com, is a responsible Crowdfunding incubator where Projects Hatch & Grow. We connect people around their overlapping business, philanthropy and personal interests as they create, support and fund responsible social impact, business and community development.
Many Thanks!
