crowdfunding intro at the maker faire in rome 5/10/2013

Crowdfunding: democratising production

Daniela Castrataro, twintangibles

5/10/13

What is Crowdfunding?

“Crowdfunding is a method of raising capital, or resources, by collecting together lots of small

amounts from a large number of people generally using the Internet and social media.”

“Crowdfunding is a method of raising capital, or resources, by collecting together lots of small

amounts from a large number of people generally using the Internet and social media.”

“More to me than actual money”

Key Characteristics and advantagesKey Characteristics and advantages

o Individual EmpowermentoMicrofinance – low barriers, larger tribeoValue of relationshipsoValue of truth and empathy - TrustoValue of Information – new currencyoTransparencyoRewards – Intangible value

oDistributed cognitionoMarket testing / Brand advocateso Increasingly a location for VCs

All or Nothing

Take it All

Accredited investors

Club Model

Micro-lending

P2P/P2B Lending

Donation/Reward Based

Equity Based

Social Lending

CrowdfundingPlatform Models

Royalty Based

What is Crowdfunding?

Cooperative Model

A world of Crowdfunding

800+ CF platforms, over 1.1M successful campaigns(62% donation-based)Total raised in 2012: + 125% ($2.7 billions)Growth in Asia (+10%) and South America (+8%)Highest growth in funding volumes: Lending (+111%)Best success rate: Lending (91%)

World trends- Growth of hybrid platforms (63.5% portals in

pre-launching phase vs 45% current portals)- Growth of niche platforms - Localvesting- DIY Crowdfunding- Enterprise crowdfunding - Traditional financial operators

Where is it Used? (Kickstarter stats)

Printrbot: 3D printer

TikToc LunaTik & Pebble

PID-Controlled Espresso Machine

An equity-based

campaign

11stst round: round:

10% of company 10% of company sharesshares

£230 / share£230 / share1300 investors1300 investors20% discount in the 20% discount in the

shopshop

22ndnd round: round:8% of company shares8% of company shares£95 / share£95 / share5000 investors5000 investors90% sold in 3 months90% sold in 3 months £1m Investment in less £1m Investment in less

than 2 weeksthan 2 weeksIndividual investments Individual investments

ranged between £95 ranged between £95 and £12K and £12K

33rdrd round: round:3.9 % of company 3.9 % of company

sharesshares£95 / share£95 / share1M invested in one day1M invested in one day4M target (January ‘14)4M target (January ‘14)

Crowdfunding in Italy

Italian Crowdfunding Platforms Overview. Castrataro, Pais, April 2013

20+ active platforms, 20+ launching

Crowdfunding growth in Italy

Works on Regulation

The Path to the Regulation

April ‘12 Oct ‘12 Dec ‘12 Mar/Apr ‘13 July ‘13

Regolamento Consob n. 18592/2013

Purpose of CONSOB regulation

• Enable the development of an initial phase of ‘testing’ of capital raising through online portals, with the main purpose of promoting the development and growth of the country.

Seeking the balance

- Market development

- Lowering of barriers

- Protection of the market

- Protection of unaccredited investors

Grazie!

Daniela Castrataro

daniela@twintangibles.co.uk @twintangibles

@italiancrowdfunding