Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder,...
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Transcript of Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder,...
![Page 1: Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder, Buzzbnk Transforming Finance Conference talk 10 May 2013.](https://reader035.fdocuments.net/reader035/viewer/2022062714/56649d0c5503460f949dfbb2/html5/thumbnails/1.jpg)
Crowdfunding: a new mechanism for donation and investment
Michael Norton,Chairman & Co-founder, Buzzbnk
Transforming Finance Conference talk10 May 2013
![Page 2: Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder, Buzzbnk Transforming Finance Conference talk 10 May 2013.](https://reader035.fdocuments.net/reader035/viewer/2022062714/56649d0c5503460f949dfbb2/html5/thumbnails/2.jpg)
My own starting point
![Page 3: Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder, Buzzbnk Transforming Finance Conference talk 10 May 2013.](https://reader035.fdocuments.net/reader035/viewer/2022062714/56649d0c5503460f949dfbb2/html5/thumbnails/3.jpg)
What is Crowd-Funding?
• Internet fundraising going beyond just giving
• A set target amount to create a specific outcome
• Within a specified time limit
• All or nothing (usually)
![Page 4: Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder, Buzzbnk Transforming Finance Conference talk 10 May 2013.](https://reader035.fdocuments.net/reader035/viewer/2022062714/56649d0c5503460f949dfbb2/html5/thumbnails/4.jpg)
What is Crowd-Funding – continued• Benefits in return – goods, product,
opportunities, events, tributes, etc.
• Gift Aid is available if for a charitable purpose
• It can involve a financial return: a revenue share or interest on loans or an equity stake
![Page 5: Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder, Buzzbnk Transforming Finance Conference talk 10 May 2013.](https://reader035.fdocuments.net/reader035/viewer/2022062714/56649d0c5503460f949dfbb2/html5/thumbnails/5.jpg)
The Crowd is as important as the
FundingMore than just money. Your crowd can give you
ideasfeedbackadviceskillsthingscontactsand mobilise support from their
friends
Engaged supporters will be there for you now and in the future
![Page 6: Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder, Buzzbnk Transforming Finance Conference talk 10 May 2013.](https://reader035.fdocuments.net/reader035/viewer/2022062714/56649d0c5503460f949dfbb2/html5/thumbnails/6.jpg)
Loans as well as Donations
• Principal only
• Fixed rate of interest
• Revenue share (also available for donations)
• Interest in kind
• A blend of these
![Page 7: Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder, Buzzbnk Transforming Finance Conference talk 10 May 2013.](https://reader035.fdocuments.net/reader035/viewer/2022062714/56649d0c5503460f949dfbb2/html5/thumbnails/7.jpg)
Different reasons for giving support• Personal support: mobilising support from people
you know and in your networks who want to support you and the project you are developing. [The Mushroom Project]
• People looking for a bit of fun – accessing “Money can’t buy” returns. [Gateshead CAB]
• Sales in advance. [The HisBe supermarket]
• An ethical or social investor looking to put money into something worthwhile and seeking a financial or a social return. [Pants2Poverty and The Converging World]
• Outliers: Projects that can get publicity and catch the imagination. [Malala’s bouquet and the BP oil spill]
![Page 8: Crowdfunding: a new mechanism for donation and investment Michael Norton, Chairman & Co-founder, Buzzbnk Transforming Finance Conference talk 10 May 2013.](https://reader035.fdocuments.net/reader035/viewer/2022062714/56649d0c5503460f949dfbb2/html5/thumbnails/8.jpg)
Crowdfunding transforming social finance• Lending for good:
Personal loans which underpin social loans
Recycling support for socially enterprising projects• Investing for good, sharing in the success
Equity
Quasi equity• Saving for good:
Allia Bonds
Community savings funds