community based crowdfunding: connecting business with capital · jason arnold . the crowdfunding...
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Community Based Crowdfunding: Connecting Business With Capital
2019 ECG Economic Development Summit April 30, 2019
The Local Crowd
Crowdfunding Made Local Diane Sontum Co-Founder
& CEO
Kim Vincent Co-Founder
& COO
Our mission is to support the wellbeing of communities by catalyzing
entrepreneurial ecosystems through the introduction of a educational
crowdfunding tool.
Community Funded Enterprises
Diane Sontum
Jessica Romero Kim Vincent
The TLC Team
Jason Arnold
The Crowdfunding Industry
Types of Crowdfunding
Seed Crowdfunding
Crowdfunding Economic Impact Crowdfunded companies increased quarterly revenues by an average of 24% Equity-based increased revenue by 351%. 39% of companies hired an average of 2.2 new employees (48% more said they plan to hire.) Within 3 months, 28% had closed an investor round. (An additional 43% were in discussions.) Every hour invested in a successful crowdfunding campaign returned $813.
CROWDFUND CAPITAL ADVISORS
Wow, Easy Money!
Wow, Easy Money! NOT!
The Real Environment
Can a Crowdfunding Strategy Help Create Sustainable Rural Communities?
Crowdfunding Research conducted in 2014-2017
Why Local Crowdfunding? Leverage!
1st Tier
1st Tier
2nd Tier
2nd Tier
3rd Tier
80% of funds raised come from activities of the Campaign Creator and his or her team.
It’s About Relationships
Building and connecting your community Doing something meaningful Having authentic voice Telling compelling story Keeping an engaged audience
Money comes after you create connections
It’s About Education Teaching Best Practices Creating User Success
–Massolutions Crowdfunding Industry Report
Day to Day marketing plans raise 180% more.
Regular updates raise 126% more.
Videos raise 105% more.
Teams raise 38% more.
Best campaigns last 20-40 days.
Best descriptions are 300-500 words.
Once you reach your goal, you are 78% more likely to exceed it.
Personal email is Best way to connect. People are 22% more likely to give once
the project has reached 40% of its goal.
A Breakthrough for Women
Women-led campaigns reach
their goals more often than men.
What if we could put an end to the gender gap women entrepreneurs face
when raising capital?
How would the lives of women and
families be changed?
The Local Crowd Monroe
TLC Campaigns from Monroe
City of Monroe Campaign
A New Opportunity! TLC 4SE Gather information from social entrepreneurs to
identify their needs and “pain” on a grassroots level.
Develop the TLC crowdfunding platform into an educational laboratory that helps SEs raise capital, connect with others and participate in the development of the 4th sector ecosystem.
—FourthSector.net
Social Enterprise
What is the 4th Sector?
What is a Social Enterprise? An organization that addresses a basic unmet need or solves a social or environmental problem through a market-driven approach.
—Social Enterprise Alliance
Three Models for Social Good
Opportunity Employment: Examples include Goodwill Industries, Greyston Bakery & Nisolo Transformative Products or Services: Examples include 4Ocean, Benetech, The Local Crowd, Soles4Souls. Donate Back: Examples include Newman’s Own, Songs Against Slavery
“1.4 billion pounds of trash enters the ocean each year. We are making it our mission to stop this.”
—Andrew Cooper and Alex Schulze
4 OCEAN is transforming our oceans
A Growing Trend
So…why is it so hard? No consistent access to capital Mission drift Finding the right suppliers Measuring impact Low Profit Margins Burnout and depression
Established Ecosystems Have…
Legal Structures
Capital Markets
Governance Forms
Support Personnel
Tax Laws
Measurement Protocols
Regulations
The Hockey Stick Expectation
4th Sector Ecosystem Experience
The Aha Moment…
“The biggest thing I learned today is that we are a 4th sector company.”
--Kari Brizius President, Relan
When social entrepreneurs learn they are all part of an emerging economic sector, they realize…
Together we can pave that road!
Introducing TLC 4SE!
FORCE!
“All fourth sector education and information exists at the 6,000 foot level. You are going to bring it to the six-foot level.”
--Rajesh Mehta NSF Program Manager
Four Pilot Communities Goshen, Indiana (Phil Metzler) Laramie, Wyoming (Trey Sherwood) Monadnock Region, NH (Jen Risley) OmniWorks Business Incubator,
Los Angeles, CA (Brent Imai)
Benefits to Pilot Communities Localized Crowdfunding Platform Comprehensive Educational Program resulting in high
success rates 5% Crowdfunding Fees Returned to Community Host
(during research period). Interviews (You can help shape 4th sector ecosystem) Raise funds for local social enterprises Engage & energize local community Fun!
The Local Crowd
TLC Tender Loving Care
Join the 4th Sector Movement!
Take our survey Tell us your story—communities & SEs Start or encourage a crowdfunding campaign Share the information with social entrepreneurs
you know!
THANK YOU! Diane Sontum [email protected]
Kim Vincent [email protected]
888-465-9622 The Local Crowd.com