...Crowdfunding Central Advancing Crowdfunding through Research and Best Practices The power of the crowd The power of new Crowdsourcing assets and the use of social networking and related Web 2.0 technologies are helping film-makers, musicians, politicians and charities finance new projects. Football clubs like Ebbsfleet United have funded operations through fans subscriptions; Obama has used the internet to reach a new and much broader funding audience, while redesigning the campaign financing business; and sites like buyacredit.com allow people to buy a credit or become an executive producer based on their level of patronage. Now may be the time for other growing companies.In practice, this is a very immature method of raising capital. Substantial legal obstacles, a lack of best practices and formal governance techniques need to be addressed for Crowdfunding to become feasible to a broader audience. About Crowdfunding Central Crowdfundingcentral.com produces member driven research to highlight the opportunities, concerns and best practices to businesses, investors and entrepreneurs of Crowdfunding. For more information go to Crowdfundingcentral.com What is Crowdfunding? Wikipedia defines Crowdfunding as: “An approach to raising the capital required for a new project or enterprise by appealing to large numbers of ordinary people for small donations”. Crowdfunding in theory delivers significant opportunities for small growing companies looking for capital to finance growth...
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...AN INTRODUCTION TO CROWDFUNDING The late 19th century saw the creation of one of the world’s most recognisable landmarks with the gift of the Statue of Liberty by the French to the US. While the French paid for the construction and shipping of the statue it was down to the US to fund the base upon which it would stand. With the statue ready to leave France, the Americans were still well short of the $300,0001 needed to build the base and erect the statue. Running short of time the American Committee (responsible for raising the funds) teamed up with newspaper owner Joseph Pulitzer to launch a campaign to invite citizens to donate even small amounts to help in the funding of the pedestal, offering donors miniature replicas of the statue in return. This 19th century crowdfunding campaign raised $100,000 in just five months, contributed to one of the most popular attractions in the world and illustrated the financing power of a large crowd when tapped for funding. While the American Committee were lucky to have Mr Pulitzer and his paper to publicise their plea for donations, others wishing to access so many people would have had no such help. This, however, has changed in recent years with the rise of social media and the new ease with which communities can form and interact online. Annual growth in the number of crowdfunding platforms worldwide Growth |||||||||||| |||||||||||| |||||||||||| ...
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...Primer proyecto: Pub El primero de los proyectos que vamos a valorar y analizar es el pub. Este pub se va a llamar Dublinenses. Se trata de un pub con un estilo de bar irlandés. Estará situado en San Sebastian de los reyes, en una de las calles donde hay bares de este estilo, pero donde el mercado no está saturado. La clientela a la que optaríamos serían personas de 25 a 45 años, personas con una determinada edad a las que les gusta desconectar, con lo cual será un establecimiento en el que prácticamente todos los días a partir de las 4 de la tarde tendrá afluencia de gente ya que a partir de esa hora se servirían café. Aún así el negocio estaría orientado más al ocio nocturno ya que la mayor parte de sus clientes consumirían por la noche. El lugar de la situación de nuestro pub seria un sitio estratégico ya que se trata de una calle concurrida por personas de los rangos de edad que buscamos y además es conocida la calle por el ocio nocturno ya que se trata de un lugar donde las viviendas están alejadas. Además en este lugar solo hay otro negocio que podría tener características similares con lo cual podríamos optar a una gran parte de la clientela total. Para poder optar a dicha clientela nos vamos a basar en el servicio que vamos a ofrecer. Este servicio se basará en unos camareros con experiencia y conocimientos de cocteleria para ofrecer productos de gran calidad así como unas instalaciones nuevas. Para poder abrir el negocio hemos pensado en hacer una gran...
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...Ventas adelantadas por apoyo o por precio mas bajo Ingreso a croudfunding por curiosida, interés en negocios sobre internet, por que deseo emprender, etc Una empresa cualquiera podría implementar este mecanismo a fin de ampliar su frontera de producción por medio de capitalización a través de negocios de bajo riesgo, es más barato llegar a una cuota alta de ventas antes de traer el bloque de mercaderías y repartirlas, habría que analizar el soporte legal, que incurre que no se cumpla la cuota y los que aportan decidan reclamar su monto. Que pasa si deciden a mitad de tiempo sacar su dinero. El modelo de negocio se basaría en un ITF por transacción, asesoría, cursos, consultoría (planteando estrategias para partes de pedido de capital por otros medios, paginas y/o sistemas), red de contactos, publicidad, impacto en marketing digital (estrategia de empuje a plan de mkt) Captación de capitales de bajo riesgo, como modelo de maximización de oportunidades Considerar que en kickstarter Los proyectos no pueden utilizarse para recaudar fondos para obras benéficas, ofrecer incentivos financieros ni involucrar artículos prohibidos. En el caso de la chacra de puerto Maldonado Se podría utilizar kickstarter para https://www.kickstarter.com/projects/55516918/stout-spice-co-fresh-organic-spices?ref=category_recommended De modo que se elabora especias con ingredientes de la selva y se publica fabricación y resultados de los trabajos ¡!!! Del mismo modo se puede hacer algo...
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...SOME PRACTICAL GUIDANCE FOR THE IMPLEMENTATION OF PROPENSITY SCORE MATCHING Marco Caliendo IZA, Bonn Sabine Kopeinig University of Cologne Abstract. Propensity score matching (PSM) has become a popular approach to estimate causal treatment effects. It is widely applied when evaluating labour market policies, but empirical examples can be found in very diverse fields of study. Once the researcher has decided to use PSM, he is confronted with a lot of questions regarding its implementation. To begin with, a first decision has to be made concerning the estimation of the propensity score. Following that one has to decide which matching algorithm to choose and determine the region of common support. Subsequently, the matching quality has to be assessed and treatment effects and their standard errors have to be estimated. Furthermore, questions like ‘what to do if there is choice-based sampling?’ or ‘when to measure effects?’ can be important in empirical studies. Finally, one might also want to test the sensitivity of estimated treatment effects with respect to unobserved heterogeneity or failure of the common support condition. Each implementation step involves a lot of decisions and different approaches can be thought of. The aim of this paper is to discuss these implementation issues and give some guidance to researchers who want to use PSM for evaluation purposes. Keywords. Propensity score matching; Treatment effects; Evaluation; Sensitivity analysis; Implementation 1. Introduction ...
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...Sistemas de Información Gerencial Crowdfunding en Latinoamérica Autores: Cinthya Briones Mayte Martínez Janira Ortiz Kevin Robalino Docente Ing. Franklin González S. Semestre B – 2015 Paralelo B Resumen El Crowdfunding conocido como financiamiento colectivo o en masa, consiste en el acceso a fondos privados provenientes de un grupo de personas mediante una convocatoria abierta a través de una plataforma virtual pública, con el objetivo de financiar proyectos: productivos, artísticos o creativos, iniciativas sociales o de emprendimiento El objetivo principal de este estudio, es analizar información relevante sobre el Crowdfunding y evaluar este método como fuente alternativa de financiamiento para nuevos emprendimientos a nivel de Latinoamérica. Para alcanzar dicho objetivo se ha realizado un estudio extenso sobre el sector de Crowdfunding desde su estructura y tipos hasta su evolución y tendencia actual en el mercado internacional, analizando además la posible demanda y oferta del mercado local explorando las diferentes plataformas más usadas y rentables a nivel de Latinoamérica y hemos considerado los siguiente países (Ecuador, Colombia, Chile, Perú, Argentina, Paraguay, Uruguay y México) calculando el número de proyectos exitosos y fallidos, así como la cantidad de dinero recolectado por plataforma. De esta manera se definió que, los inversionistas y emprendedores perciben al Crowdfunding como un método viable de financiamiento para el desarrollo de pequeños...
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...Crowdfunding : This reaches large number of people for non-financial support like support, sharing ideas and feedback on the existing product or service. This gives you a valuable inputs and ideas from the most potential customers or people to implement your project or concept. Non-Equity Crowdfunding : The aim of Non-Equity Crowdfunding is to obtain or mobilize money before launching your product or service like doing product pre-sales, conducting special events and recognizing sponsors. This would be the best way to make the backers or supporters to get more confidence on your product or service. Equity Crowdfunding: The main motto of Equity Crowdfunding from large number of individual’s in-return of small amount of benefits or stocks from...
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...investors, intermediaries and entrepreneur. Crowdfunding is solicitation of funds which are collected in small amount from multiple investors through a web-based platform or social networking site for a specific project, business venture or social cause. It allow entrepreneurs to raise...
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...Table of Contents CROWDFUNDING IN PAKISTAN: WHAT MOTIVATES THE CROWD TO INVEST IN START-UPS? 2 Introduction: 2 Literature Review: 3 Research Methodology: 7 Findings: 8 Conclusion: 10 Works Cited 11 Appendix (interview guide) 12 CROWDFUNDING IN PAKISTAN: WHAT MOTIVATES THE CROWD TO INVEST IN START-UPS? Abdul Munim Khan, SZABIST Karachi, munim-khan777@yahoo.com Rana Muhammad Shoaib Hassan, SZABIST Karachi, shoaib.hassan99@yahoo.com Jawad Amjad, SZABIST Karachi, jawadbukhari51@yahoo.com Abstract Crowdfunding is an increasingly popular source to fund start-up, worldwide. In crowdfunding, a form of crowdsourcing, many crowdfundees collectively fund a start-up by providing parts of the requested funding in prospect of financial returns or social return. While extant research has provided insights into the crowd’s motives for participating in various forms of crowdfunding initiatives, we know little about the motivations that drive the crowd to invest in start-ups via crowdfunding. In literature, there are ongoing calls to investigate this phenomenon since it is expected that motives for investing in start-ups via crowdfunding differ from motives for engaging in other forms of crowdsourcing initiatives. Against this background, this research aims at investigating why crowdfundees fund start-ups. In this research paper we build on related literature to theoretically develop a research model and plan to validate this model with an empirical survey on an equity-based...
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...minimal. Unless there are changes done at the company, it will go under soon. Luckily, the product development department has recently created a new product that will revolutionize how the industry does business. The only problem is that the product is still two years away from being able to be sold to the public, and the company’s cash will run out within the next six months. Obtaining Funding According to Goins and Little (2014) the first source of funding look at when searching for additional funds is crowdfunding. Crowdfunding allows for a smaller pool of investors to fund the company with less restrictions. It is allowed under the JOBS Act that launched January 1. It is geared towards the early stages of business and can be combined with venture capital funding. It can ideally be used in the early stages of a business, especially if you don’t qualify for a bank loan, and don’t have angel or venture capital funding. Additionally, according to Buol (2013) with crowdfunding, individuals can contribute small amounts via online campaign, started in the late 1990s and has been used to fund bands, movies, art projects and inventions. The Jumpstart Our Business Startups (JOBS) Act signed in April 2012 opens the doors for startups to solicit equity financing from the...
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...Student’s name Professor’s name Course Date Rule 147 The SEC (Securities and Exchange Commission) is proposing an amendment to the Rule 147 which will modernize it since it has been out of date since its adoption in 1974. It was such a long time ago and to be still dependent on such a draconian rule is wrong considering the current times and the need and use of the internet within and around the business environment (“SEC Adopts Rules to Permit Crowdfunding.” 1). The SEC wants to amend certain sections of the rule so as to make it more favorable to contemporary business practices. It proposes three major changes to the existing Rule 147 which include: 1) Elimination of limitation on manner of offering. The present Rule 147 doesn’t permit issuers to use any form of mass advertisement to promote their offering to the general public that could most likely reach residents that don’t reside in the issuer’s state. Instead, what is permitted is a source of advertisement that is tailored to reach in-state residents hence making internet advertisements almost impossible to use. That is a shame considering how popular and effective it is. The amendment would see sales still limited to in-state residents but offers could be made to residents who don’t reside in the issuer’s state (Zeoli). 2) Elimination of residence requirement for the user. The current rule requires issuers to be formed or incorporated in the state where the offering is happening. The new amendment that...
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...Kickstarter is the biggest and most popular crowdfunding platform, therefore the rules and regulations it has set for the projects soliciting the financing have become a standard in the crowdfunding field. The funds from Kickstarter are “no easy money”: in order to receive the capital, the projects should adapt to following guidelines: • Projects must create something to share with others • Projects must be honest and clearly presented • Projects can’t fundraise for charity, offer financial incentives, or involve prohibited items The projects are supposed to have a specified financial goal and the deadline for fund collection. It is crucial for the creators to provide a prototype or a specific plan for their invention, backed with the video assuring about the creator’s credibility, as well as the project’s feasibility...
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...Five things I wish I'd known before starting a crowdfunding campaign The Sweetman brothers are fast approaching their £50,000 social enterprise crowdfunding target. How are they doing it? • How to succeed with your crowdfunding campaign • The smartest urban crowdfunding projects – in pictures • Why crowdfunding now sets the trends Ambitious crowdfunders need to stack the cards in their favour, and there are five ways to enhance your chances of success. Photograph: Pegaz/Alamy 1. The right platform There are five types of crowdfund: equity, donation, reward, debt/peer-to-peer lending, and royalty (which takes a percentage of future revenue in return for investment). To succeed, the type has to match your ethos, organisation and brand. At Stickyboard, we opted for equity raise using Crowdcube's platform. We offer community web development, so being owned by the community fitted our principles. The platform you choose will be the shopfront for your campaign, so take a look round to get a feel for projects and perhaps sign up to a few to see how often they send newsletters and promote projects. 2. Focus on why you're a good investment This point took us a while to realise. We started by spending more time saying why what we did was great rather than pointing out why investing in us would be awesome. Focus on how an investor benefits (eg, EIS tax relief, rewards, return after what period), and how you know they will see those benefits (eg, your USP, years of experience, track record...
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...Recommendation The investment team recommends that $1 million of funding should be awarded to Startsmall over Healthyeat. Startsmall’s primary objective is to provide microloans and microbusiness training and support to low-income individuals in Central and South America. The team assessed the Startsmall’s viability of based on the following criterion: 1. Industry Trends – From an industry perspective, the microfinance industry has faced some headwinds due to pressure from activists accusing institutional lenders of profiteering from the poor. In response to this negative perception, Startsmall’s innovative approach to build a crowdfunding platform provides a new avenue for lower income individuals with access to 1-3% interest. Results from more established players such as Kiva demonstrates a 98% repayment rate which affirms that the crowdfunding approach is a sustainable business model. 2. Financial Impact – The team expects an 8% return on equity based on the assumption that Smallstart will remain a profit generating business. The team forecasts a 4.0-5.0x M-o-M if the company can expand its use base to approximately 500,000 clients in the next 4 years. With a sizeable customer base across South and Central America, regional banks who are actively seeking profitable microfinance ventures would be interested to acquire Startsmall at a premium valuation. 3. Social Impact – In comparison to Healthyeat, Startsmall’s funding usage demonstrates a higher multiplier effect...
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...The Many Faces of Start-Up Financing All entrepreneurs face a similar challenge in the infant stage of their new venture: raising capital. While successful companies in their adolescent years can display steady cash flows and solid customer bases to potential investors, companies in their initial stages often cannot. This poses the challenge of obtaining capital sources from entities that may or may not have many reasons to believe in a new company’s ability to perform. However, despite the extensive challenges, there are multiple potential sources of capital that entrepreneurs can strive to obtain. Whether relying on smaller players like friends and family or crowd funding, or reaching out to larger, institutional investors such as angel investor networks or venture capital firms, business owners do have options when it comes to finding the capital they need to get their business off the ground. However, some routes make more sense than others depending on the specific company’s situation and objectives. Typically, a new business begins with something very simple: an idea. Sometime the individual spends years developing and tweaking the idea, and other times it simply comes to them in an instant. However it comes, once it does the entrepreneur needs to begin turning that idea into a more tangible concept. This almost always requires capital, whether for manufacturing a product, developing software, or hiring outside consultants to help develop the idea. There are many ways...
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