Crowdsourcing donations: getting free money for your startup in Europe

Crowdsourcing donations: getting free money for your startup in Europe

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Crowdsourcing or crowdfunding?

SAME!

Press release (Oct. 2013): Crowdfunding in the EU - exploring the added value of potential EU

action

Commissioner for Internal Market and Services Michel Barnier said: "Crowdfunding – this alternative form of fundraising that is collective, participatory and interactive – is becoming increasingly important. It has the potential to bridge the financing gap many start-ups face and to stimulate entrepreneurship.

US >vs< EU“While the U.S. currently leads the world in volume of

crowdfunding transactions (estimated by the 2013 Crowdfunding Industry Report for this year to be at 72%), a sizable chunk will come from Europe, at 26%, and 2% from the rest of the world.”

“Crowdfunders generally fall into different categories: equity, donation, reward, and debt. The last is also known as microfinancing — and commonly referred to in Europe as “peer-to-peer lending.”

– David Drake, Forbes, 2013

Crowd-sourcing

in Europe – or should I say, UK

and Nether-lands!

Source: crowdcafe.com

Is crowdsourcing a good choice?

• Bypass banks, venture capital firms and angel investors (and save asking more from your family and friends)

• Have control over the rules of investment (depending on which website you choose)

• Market your startup on popular crowdsourcing platforms

• Fast setup

i.e. It’s the path with the least strings attached

Crowd sauce – if you are successful, it’s also an awesome

way of validating your idea

Pebble raised HOW MUCH??!!

Source: Kickstarter

Most common types of crowdsourcing

…and since money doesn’t grow on trees for startups…

Here’s a list of the most budget-friendly options in Europe!• CroFun

• RocketHub• IndieGogo• KissKissBankBank• Ulule• Zequs• Booomerang• 100-days• Start Next• Verkami• Goteo• Eppela• MassiveMov

*note*There may be many

more – a lot of crowdsourcing sites are specific to an industry,

charity, or country. Check out

www.crowdsunite.comfor more options

Cool, so I know the platforms. What’s next?

An ass-kickin’, mind-blowin’

campaign design! And then a marketing campaign. Yay.

Choose the appropriate platform

Image credits: quickmeme.com and museumvictoria.com.au

Pick the right time of the year – avoid major holidays and when people are

generally broke

Create a compelling theme/message

Seth Godin’s “The Icarus Deception” campaign

Create a short video and supporting images reflecting the core message of your idea

TechJect’s Dragonfly Robot: http://www.youtube.com/watch?v=c9lM-vM2dk8

Offer attractive rewards for contributors – that you can realistically do

Source: jewcer.com

Leverage the shit out

of your network in

advance and during

the campaign (it helps if

you have an engaged

following on social

media)

Reach out to those who have successfully raised and ask for tips and endorsements

Keep the excitement rolling with regular updates on social media, your blog,

email list

Tom Woodward

Mention it on forums full of people who you identify as the right contributors

Top 5 mistakes when doing crowdsourcing (from the owners of IndieGoGo)

• “Crowdfunding is not a lottery”• “Setting a goal that is too damn high”• “Jumping the gun with marketing”• “Dry, business-like pitch”• “Perks that don’t work”

The article that inspired this Slideshare is available on Pitch.rs

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