1. UK Crowdfunding Jo Briggs, Northumbria University Principal Investigator on RCUK project A Taxonomy of UK Crowdfunding

2. Crowdfunding Online crowdfunding platforms enable individuals, groups and businesses (project ‘founders’), to raise money for creative, charitable and entrepreneurial activities through the solicitation of multiple micro-payments from 'the crowd’ (‘funders’)

3. Why is it Topical?  Technological innovation  New way of connecting those seeking funding for a given cause or commercial initiative (‘fundraisers’), with those wishing to give to or invest in it (‘funders’)via the Internet…  Involves collaboration tools, social media and ‘platforms’  Is facilitating thousands of new products, services and social innovations  Societal changes  Facilitates individual/grassroots empowerment/social action  e-tail/e-commerce; ‘digital natives’ era  Economic challenges  For fundraisers: shrinking budgets/constraints to accessing finance  For funders: lucrative, novel and accessible investment opportunities

4.  Part of the crowd economy; one of several new ‘economies’ (‘collaborative economy’; ‘sharing economy’ e.g. Airbnb, Uber)

5. Rapid UK Growth 2013 UK estimated* economic value: £20.5m for rewards-based (387 percent annual growth) £310m for donation-based £28m for equity-based (600 percent annual growth) Collins, L., Swart, R. and Zhang, B. The rise of Future Finance: The UK Alternative Finance Benchmarking Report, Nesta with universities of Cambridge and Berkeley December 2013*

6. Donation-based crowdfunding is more philanthropically/community motivated. UK Spacehive aims to facilitate the improvement of local public spaces and amenities Rewards-based crowdfunding (or, pre-sales) for which the funder usually receives a material reward e.g. Kickstarter Definitions

7. And, in the (variously labeled) loan-based crowdfunding, peer- to-peer, peer-to-business or ‘non- bank’ lending, platforms such as Funding Circle broker deals for borrowers from funders on pre- agreed terms. Equity crowdfunding is profit driven e.g. Crowdcube solicits multiple venture capital investments for businesses in exchange for which funders receive a share of equity/bonds Definitions

8. “Keep it all” The fundraiser keeps whatever is raised “All or Nothing” A funding goal must be reached for money to be exchanged “DIY” Run your own version from your website Hybid models offer a mix of these Definitions

9. BUT crowdfunding always involves more than just people's wallets "Disruptive" - but not just in terms of access to finance... …and we still don’t understand much about people’s online behaviour

10. So, what makes a successful campaign?  Don’t ask for running/operational costs, needs to be part of an overall strategic plan and specific offering  Careful and transparent budget  Clear narrative (KISS), well presented (film, write up etc.); tell a good story  Digital communications plan  Realistic and responsible reward structure (or share offering)  Follow-up plan

11.  Crowdfunding is not just about raising cash…  It brings with it a whole raft of challenges and opportunities for SEs, charities and mutuals  It’s very hard work! Success rates for some sites/sectors are low  How might "clictivism*" help or hinder social change membership and community organisations? [*“the use of social media and other online methods to promote a cause”]  **Successful campaigns rely on excellent communications and marketing planning**  In turn, campaigns usually bring changes to an organisation's profile and relationships with its customers/ users - for better or worse! Small Businesses and Groups

12. Nae Pasaran  https://www.kickstarter.com/projects/debasers/n ae-pasaran-an-untold-story-of-chilean-solidarity https://www.kickstarter.com/projects/debasers/n ae-pasaran-an-untold-story-of-chilean-solidarity

13. http://www.growossining.com/ Grow Ossining

14. Leeds Bread Coop http://www.crowdfunder.co.uk/leeds-bread-coop

15. Creative Sector

16. Where to start?  Start with rewards-based crowdfunding (doesn’t involve taking on debt or giving away equity/IP)  Use Tim Wrights TAMP method (targets; audit; method; plan)  Targets: What/when/why/who…  Audit: Assets/skills/resources/tools  Method: Reward/equity/peer-to-peer/donation  All or nothing/keep it all/duration/platform  Plan: Resources/responsibilities/schedule/publishing plan  Before/during/after

17. Resources  Directory of platforms  CrowdingIn CrowdingIn  ‘Toolkits’ and ‘how to’  http://networkcultures.org/moneylab-toolkit/ http://networkcultures.org/moneylab-toolkit/  http://www.nesta.org.uk/publications/working-crowd http://www.nesta.org.uk/publications/working-crowd