2012 February | alchemyinnovation

How Crowd funding Transactions Work?

Entrepreneur posts project including funding amount and time (1 to 90 days)
Backers fund the project (money in escrow account)
At project completion date, entrepreneur receives funds
Often is “All or Nothing” – if project under-funded entrepreneur gets NOTHING, if over-funded gets the over funded amount

What Types Of Ventures Can You Get Funding For?

For-profit ventures, non-profit ventures, creative ventures, ambitious ventures
Restrictions placed by platforms
- E.g., on Kickstarter.com, no ventures dealing in like pornography, violence,firearms, weapons, lotteries, raffles, etc
- Kickstarter: project should achieve a goal (not pay (medical) bills, or go onvacation)

How Much Money Can You Raise Via Crowdfunding? Excluding Equity based Crowdfunding. Review of sites worldwide:

As little as $500 as much as $200,000 and more
Possibilities
“Sweet spot” seems to be $4000 to $25,000
Note it doesn’t have to provide all the funding
Can have other sources and followup sources too (e.g., bank loan)

Why Does the Crowd Donate or Invest?

They like you (friends, family, acquaintances)
The like your story (friends, family, acquaintances, others)
Rewards (tangible and intangible rewards given to backers)

Why is Crowdfunding occurring now?

Initial donation-based crowdfunding platforms weren’t even built until late 2009
Key trends for crowdfunding growth
Simplicity of posting content online
Massive growth of social networking (MySpace, Facebook, Twitter) gives individuals massive reach that they didn’t previously have

Essentials for a good Crowdfunding campaign

A Compelling Story and Prize
A Passionate Individual or Team
Impressive Credibility
Lots of Suitable Followers
A Proven Process and Platform

What are the Fundamentals of a Crowdfunding Raise?

Choose your platform (e.g kickstarter, profounder, see Alchemy list)
Create an account
Create your funding project
Categorize your project
Create your project tagline
Create your project teaser text
Create your full text project summary
Determine the right fundraising amount
Determine the right donation time
Develop your list of rewards
Create your project visuals
Create your project video
Promote your project to your network
Maintain and update your project

Links to successful crowdfunding campaigns:

If you have any questions or queries, or would like some assistance to implement a crowd funding raise pleas call 1300 308882 or send an email to admin@alchemyequities.com.au and someone from the Alchemy team will assist you.