Plum Alley + VROU: 85Broads Webinar

Connecting Women with Commerce, Funding & Experts

CROWDFUNDING FOR WOMEN

WITH

Deborah Buresh Jackson, Founder and CEO, Plum Alley

Kathryn Moos, Founder and CEO, VROU

CROWDFUNDING

COMMERCEEXPERTS

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Crowdfunding Presentation Summary• Basics: What is crowdfunding? (equity and reward-

based)

• Benefits for women who raise money

• Benefits for women who give money

• Case study with woman entrepreneur, Kathryn

Moos

What is Crowdfunding?• Going to the public or the crowd and asking them

to give you money for your idea or project

• Power of the internet - easily connect with your

friends, family, and supporters

• It is efficient, low cost, and relatively easy compared

to the “old” way

Three Types of Crowdfunding

Equity crowdfunding with Accredited

Investors

Equity crowdfunding with everyone else

Crowdfunding with rewards instead of

equity

Equity Crowdfunding with Accredited Investors

• Women give a piece of ownership in their company for money

• Similar to angel or VC investing only done on the internet with documents

and info—generally not in person

• Can raise money for revenue making businesses not ideas or projects

• Handful of sites that are new: Angel list, Circle Up – have to be qualified

accredited investors to invest—high net worth individuals who document

that they have a net worth over $1 million or other tests and the financial

means to lose the money if investment fails

• Have to decide if your company is in a position to do this—lots of people

looking on-line at your company and evaluating

• Remember less than 10% of start-ups succeed so highly risky

Equity Crowdfunding with other than Accredited Investors

• Jobs Act 2012 passed legislation passed to spur economy and jobs.  

• The long standing rules about who can invest were liberalized -

anyone who makes over $100,000 can invest in companies for a piece

of equity ownership.  

• In the news a lot but regulations for how it will work just coming out

from SEC in bits and pieces.  Not yet final regulations.  Stay tuned.

• Right now Plum Alley does not offer equity crowdfunding but we may

at some point in the future.

Is Equity Crowdfunding from non-accredited Investors a good idea or bad idea?

• Most people are not in a position

to loose their money. The

documents and information

prepared for potential investors is

not standard and investors need

some protection to make sure they

have complete and proper

information to invest.

ARGUMENT AGAINST

• Opens up new sources of money

for early stage companies.

• Gives many people a way to

benefit from upside if a company

is successful.

ARGUMENT FOR

Reward based crowdfunding: What Plum Alley fund o!ers

• Reward based - people who give money get a prize or a gift for their

contribution.  It is not charity.

• What can the prize be?

• depends on the type of project but can be something big or

something small

• depends on how much you give

• examples are a water bottle with a logo, a private dinner with a

movie star, a product before it is available anywhere else

Why do people give money on crowdfunding?• They know the person

• They can give small or large amounts

• They want the product

• They want the reward

• They want to see the project exist or happen

• It makes them feel good

• It is powerful and changes the world

• It will make the world better

• They are part of a bigger movement

What types of things can be funded on Plum Alley?• Pretty much anything

• Examples are:

• Cultural projects such as art, theatre, dance

• Film

• TV pilot

• New foods or beverages

• A social movement or cause

• Consumer products

• Eco-friendly project

• Orders for new items to test market acceptance –like clothing or

fashion

How does crowdfunding on Plum Alley work?

• Determine if right for you or your

company

• Is your extended network large

enough?

• Do you care enough?

• Can you devote the time needed

for 2 months or more?

Steps for a crowdfunding campaign on Plum Alley

Determine how much money to raise

Make a budget and estimate cost

Determine your network and decide

the best way to approach them

Assemble your handful of friends to help you - they

will be honored

Plan event, plan launch

Keep up the visibility and ask directly for people to

fund

What helps a campaign on Plum Alley succeed

• team or a company—it is harder alone

• tap into every network you have even your high school friends

• find your champions and funders and get them to do more—tell

everyone they helped you and thank them

• develop a near term social media plan and outreach help

• passion, courage and tenacity are necessary ingredients

• hire experts to help with your campaign

• plan long enough time for your campaign to progress

• be conservative in the amount you raise and push to over fund

Why do I personally like crowdfunding?

• It makes dreams come true

• A little money goes a long way to jump starting your idea or business

• It builds a community from day one

• People like to help—here is an easy way

• Women don’t have the same access to capital and this is one way to

tap a crowd—think of what the Obama campaign taught us: all those

college kids giving $5 adds up.

• This is disruptive—it is a way to change the flow of money in our

society and it empowers everyone to participate

• You can test your product and minimize the risk to you and future

investors

What if you don’t have a project? How can you participate on Plum Alley fund?

Transforming and simplifying the way women get nutrients

Case Study: Kathryn Moos of VROU

Where we are

• First Product: Multivitamin Drink + Antioxidants + Electrolytes

providing women with 13 essential vitamins

• Launched May 2013 - Available in select Whole Foods locations

Why Plum Alley?• Women helping women

• Aligning strong women-focused companies have staying

power

• Opportunity to get brand in front of many eyes while

controlling message

• Engage and excite community and personal networks

• Help support demand

Advice for other project creators: Preparation is key!

• Create a compelling narrative surrounding your idea

• Put yourself in the shoes of somebody who knows

nothing about your brand and is being exposed to

the idea for the very first time...what moves them?

• Commitment to the campaign

• Crowdfunding is a huge time commitment and a

lot of hard work.

Strategic outreach starts BEFORE your campaign goes live• Give your personal network (friends and family) a heads up that you

are going to launch a campaign, and tell them to be ready to act as

soon as you go live

• Early traction is important

• Compile lists of bloggers and media contacts that have had a

previous experience writing about your industry / crowdfunding

• Develop unique story angles for editors

• Be personable

Plans post Plum Alley• Schedule and prepare for second production run so

we can send out the rewards to our wonderful

contributors!

• Put pieces in place to broaden distribution 

• Whole Foods and other retail accounts

• Online (if we meet our stretch goal on Plum

Alley!)

Why a crowdfunding site catering to women?• The exact same reason that women pay and join

organizations like 85 Broads - 25,000 strong world wide,

and the same reason there were 7,000 paying women at

the PA Conference for Women.  Women want their space

and they want to share inspiration and resources.  That is

what these organizations and conferences do.  That is also

what Plum Alley does.  It provides inspiration and resources

for women.

WWW.PLUMALLEY.CO

• sign up for our emails to keep current

• fund projects of interest or launch a project

• support women entrepreneurs by buying their products - it matters!

• sign up to be an expert for pay or hire an expert

https://fund.plumalley.co/en/the-multivitamin-drink-for-women

SUPPORT VROU’S CROWDFUNDING CAMPAIGN