Differences between types of crowdfunding, profits of investing in start-ups

1. What it is
Crowdfunding ?

2. Crowdfunding is a
method of raising capital
through the collective
efforts of frends, family,
customers and individual
investors for a business,
project or idea.
What is crowdfunding?

3. What are the benefits of crowdfunding?
❏ Reach
❏ Presentation
❏ PR & Marketing
❏ Validation of the concept
❏ Efficiency

4. ❏ Donation-Based Crowdfunding
any company in which there is no
financial return to the investors or
contributors
❏ Rewards-Based Crowdfunding
involves individuals contributing in
xchange for a “reward”, e.g.
product or service your company
offers
❏ Equity Crowdfunding allows
contributors to become part-owners
of your company by trading capital
for equity shares
What are the types of crowdfunding?

5. 5 %
commision when you reach your target.
If you don’t meet your target, you don’t pay.
How much does it cost

6. If you are:
❏ established small business
looking for growth capital
❏ brand-new start-up needing to
purchase equipment
❏ someone with a million-dollar
idea
crowdfunding is for you!
Is crowdfunding right for me

7. ❏ Investors have to confirm their investments
❏ Crowdfunding platform will take care of the formalities
❏ Money will be transfered to your bank account
❏ You have to send rewards or certificate detailing
shareholding
What happens when I reach goal

8. Rewards-based crowdfunding
commitments to the investors ends
when rewards are delivered
Equity-based crowdfunding
depending on how much equity was
released, generally each investor
will only had a point of a percentage
stake in your business, so you
shouldn’t be concerned about
interference with day-to-day running
of company
How involved will investors be in
business

9. ❏ Story that prompts action
❏ Perfect pitch
❏ Activity on social media
❏ Large, supportive personal network
Characteristics of successful campaign

10. Thank you...