social credit sytem
TRANSCRIPT
Turning APStartup into Impact Crowdfunding with Social Credits
Asia Pacific DealFlow Ltd 1703 Infinitus Plaza, 188 Des Voeux Rd Central Hong Kong
IntroducDon
• What is a Social Credit
• Social Impact
• The technology
• The business model
• Next steps ?
Serial Entrepreneur
TIE Mentor TEN member Cocoonian
Startups E-‐Finet.com (8317.hk) ForDtude SecuriDes New Media Research
Career Thomson Financial SBC Warburg Offshore Banking Family Office mgmt.
About the Founder
download Tony Cha’s career bio
APStartup.com Create, Build, Promote and Fund
WE ARE…
• A social network plaBorm for Entrepreneurs
• Apps For Startups
• DealFlow for Investors
Impact InvesDng Problems
Unlocking Capital
• Lack of DealFlow pipeline of social enterprise projects
• Lack of investor incenDves on funding a project
Structure weakness
• No mapping out of social enterprise ecosystem
• No marketplace for social products and soluDons
Campaign awareness
• Lack of public awareness and interest in social enterprise projects
• Ge`ng Corporate involved via CSR campaigns
The Value of a good deed?
What is a Social Credit ?
• An intangible unit out of social good
• Western philosophy – A good deeds brings BLESSINGS
• PosiDve acDons bring KARMA
• Islam -‐ NIYYAH means that a good deed is rewarded with untapped treasure and reward
• Chinese philosophy -‐ Good deeds contribuDons bring FU QHI (福气) which brings good prosperity for yourself and family doing good (,祝福 )
• Investors -‐ An investment value of USD1 per credit
• Consumers – A discount value of up to 50 Cents credit on purchases
• Social Enterprises – Can resale value of USD 0.25 per credit
TRADITIONAL DEFINITION OUR DEFINITION
Social Credits – influence of 4 concepts
Bitcoin
• A virtual currency
• A storage of wealth
Consumer Loyalty programs
• Reward good customers
• e.g. Air Miles and rewards
GamificaDon
• Reflect social goodwill of invesDng and giving
• e.g. • Badgeville and Alpha user Points
Crowdfunding
• Influence Crowd to invest in social enterprises
• e.g. impactrader.com
Social Credit Ecosystem
Social Credits
CROWDFUNDING
E-‐COMMERCE
SOCIAL CREDIT ISSUANCE
GAMIFICATION OF SOCIAL CREDITS
CAMPAIGN MANAGEMENT
SOCIAL CREDIT ISSUANCE– A central issuer and redempDon of social credits – a kind of central bank. CROWDFUNDING – A rewards based crowdfunding for Social Enterprises. Social Credits for funding. E-‐COMMERCE – A portal to buy and sell products of Social Enterprises. Social Credits can be used to parDally seilement. GAMIFICATION – ways to promote Social Credits as a storage of wealth and status CAMPAIGN MGMT, -‐ a system to allow acDvists to raise awareness of social enterprises on social media
Eco-‐system parts
Growth of alternaDve currencies
The Value of Bitcoin has gone through the roof since the escalaDon of the Cyprus monetary crisis
Social Credit Ecosystem
Social Credits
PCROWDFUNDING
(part 1)
E-‐COMMERCE
(part 2)
SOCIAL CREDIT SYSTEM
(part3)
GAMIFICATION OF SOCIAL CREDITS
(part5)
CAMPAIGN MANAGEMENT
(part4)
SOCIAL CREDIT ISSUANCE– A central issuer and redempDon of social credits – a kind of central bank. CROWDFUNDING – A rewards based crowdfunding for Social Enterprises. Social Credits for funding. E-‐COMMERCE – A portal to buy and sell products of Social Enterprises. Social Credits can be used to parDally seilement. GAMIFICATION – ways to promote Social Credits as a storage of wealth and status CAMPAIGN MGMT, -‐ a system to allow acDvists to raise awareness of social enterprises on social media
Eco-‐system parts
SE Credits -‐ Issuance and redempDon
• Can use excess social credits for discounts Consumer
• Offers price discounts to consumers with social credits
Social Enterprise
• Buys excess social credits from Social Enterprise for 5c per SC
SC Fund
• Gets 1SC per USD invested, can choose to display SC or use it for consumpDon
Investor
• Buys SC from SC Fund at10c per SC and rewards invest 1SC per USD invested
Social Enterprise
• Issues at 10cents per SC
SC Fund
Funding AcDvist campaigning
• Receives credits from Social Enterprise for acDve campaigning via Social media
AcDvist
• Is issued Social Credits on credits for purposes of markeDng
Social Enterprise
• Issues Social Credits to SE on a credit basis for markeDng campaign.
SC Fund
ConsumpDon
Part1 -‐ Crowdfunding
We Crowd-‐ fund for rewards in Social Credits
Cannot legally crowd-‐fund for equity
Social Enterprises can upload their profiles and stories
We already have the 80% of the system
Requires payment gateways – Paypal, Credit Card and TT transfer
Entrepreneurs Investors, AcDvists
Social Enterprise Groups
Crowdfunding : (system already in place)
Entrepreneurs, Investors, Mentors and & Advisors, Service Providers
Any type of business, company or organizaDon
Private Groups, clubs and associaDons, local angel groups, VC firms
Crowdfunding for social credits (how it works)
Funder/ Consumer
SE1
Consumer
SE 2
Funder funds USD1000 into SE1 through as a impact investment
SE1 pays 10% of USD1000 (USD100) to SE Fund for issuing 1000 Social Credits to Investor
Funder can display their 1000 SoCredits online as a badge of honor
SE2 can offer 200 SC as bonus on order of $200 to consumer
SE1 issues 1000 credits for $1000 investment to Funder at 1$ per Social Credit (SC)
Consumer buys a $200 order from SE2. Pays $100 and 200 credits (50c per SC)
SEF
SEF Sell 1ooo credits to SE1 for USD100 (10 cents per credit)
Part 2 -‐ E-‐commerce
e-‐commerce cart
Owners of Social Credits can buy goods from Social Enterprises
A new e-‐commerce system needs to be built into the plaporm
Social Enterprises can offer upto 50% social credits and 50% cash
Issues of logisDcs and fulfillment
Creates a demand for their goods and services
E-‐commerce and Social Credits – how it works
Consumer1
SE1
Consumer2
SE 2
Consumer1 has 1000 credits.
SE2 has a product for sale at UDS200, they will accept 50% cash and 200 credits. Valuing credits at 50c per credit.
PRICE DISCOUNT with SC Consumer can purchase SE2 product for cash USD100 and 200SCs @ 50c per SC.
PURCHASE with BONUS SE2 can now offer their product for sale at full price USD200 to consumer2 with bonus of 100SCs ( value 50c per SC)
Some Consumers choose to hoard SC for display of social wealth
SEF promises to redeem SC at 5c per SC
SE2 can offer consumer2 SC as bonus on order of $200 to consumer
Consumer buys a $200 order from SE2. Pays $100 and 200 credits (50c per SC)
SEF
Part 3 – Social Credit system
Social Credit Bank
SE1
Consumers Investors AcDvists and Evanglists
Social Credit Bank issues and redeems social credits
It issues only to accredited Social Enterprises at USD10c per social Credit
It redeems from Social Enterprises at USD5c per social Credit
Social Credits are used by Social Enterprises to incenDve FUNDING, CONSUMPTION and ACTIVISIM
Social Credit Bank offers to redeem social credits at 50c per social credit
We prefer owners to hoard social credits for wealth and presDge
SEF
A social credit based economy
Part 5 Campaigning
• Few will fund, but many people will get involved in other capacity.
• BLOGGING
• SHARING
• VOLUNTARY WORK
Part 4 – Campaign management
Social Enterprise
Campaign
AcDvists
Evangelists
Volunteers
Community
AcNvists create news by wriDng blog to promote Social Enterprise campaigns
Evangelists will spread the news by reposDng or sharing Blogs and arDcles over the internet.
Volunteers contribute their Dme to helping a Social Enterprise.
Social Enterprise can issue social credits
AcDvists 10 SCs per arDcle Evangelists 1SC per repost or share Volunteers – 100 SCs per hour
AcDvist rewards 1SC per FB post
Evangelist rewards 10 SC per arDcle
Volunteer rewards 100 SC per hour
Social Credits to sDmulate Impact InvesDng eco-‐system
Social Enterprise
Funders
Consumers
AcDvists
Volunteers
A CURRENCY SYSTEM FOR SOCIALCREDITS
FUNDERS Fund SE projects for social credits. 1SC per USD
Consumers Consume SE products using SC as a discount.
Volunteers Earn Social Credits by offer their Dme and service to contribute to the building of a SE project
AcNvists Are rewarded Social Credits for creaDng and spreading campaigns to raise awareness on the Social Enterprise project.
Volunteers can earn SC from Enterprise
Funders receive SCs for funding 1SC per USD
SEF
SE purchases and redeems SC from SEF exclusively AcDvists earn SC
for parDcipaDng in SE campaigns
Part 5 – GamificaDon (why people will play)
Badges on your Profile
Leader Boards
Badge of Achievements
GamificaDon of Social Credits
• Investors get 1 SC per USD1 funded • SE purchase SCs at 10% of value from SE Fund • SE redeem SCs at 5% of face value to SE Fund
Game Mechanics
• Leaderboards -‐ top 10 • Quarterly awards and recogniDon • Social plaporm connecDng
ReputaDon Mechanics
• Use of web based plaporm based on APStartup • Online social network connecDng SEs and Investors • Funding plaporm for SE projects • Consumer “Ebay” type portal for buying SE goods
Social Mechanics
Technical
• APStartup already has a directory lisDng of Social Enterprise projects
• Adding in crowdfunding to this is easy
• Add in a user points based system for administraDon of Social Credits
• IT implementaDon will take 1 month and less than USD10,000
Technology – applicaDons used
Campaigning
• Jomsocial • Facebook connect
Funding
• Jgive • Paypal gateway
ConsumpDon
• Virtuemart
• SC
AcDvist Funder Consumer
Technology
• Facebook Open Graph
mobile
Jomsocial -‐ social network
Crowdfunding
Crowdfunding component
Pledge
• Funder pledges to fund the startup
• We issue a note for payment
Payment
• Use paypal, credit card or wire transfer
Social Credit
• Issue of social credits to Company
Release funds
• Funds TT to company
• Less 10% for SC issuance
Funders Social Credits Ltd Social Credits Issuer
Summary
Social Credits
INVESTORS
SOCIAL ENTERPRISES
COMMUNITY
CONSUMERS
IntroducNon of a Social Credits as a value of doing good
IMPACTS
Funding into Social Enterprises
ConsumpGon of of social enterprise goods and services
Awareness of social enterprises projects through social acGvism and evangelism
Links volunteers to social enterprise projects
Thank You !
Asia Pacific DealFlow Ltd
Registered address : Suite 1703 Infinitus Plaza 199 Des Voeux Road Central Hong Kong Tel +825 2570 1161 Fax +825 3020 1086 [email protected]
References
• Equity crowdfunding in Europe hip://www.crowdsourcing.org/editorial/a-‐cloudy-‐forecast-‐equity-‐crowdfunding-‐in-‐europe-‐part-‐1/20692
• Building a Virtual Economy • hip://www.slideshare.net/maimcallister/building-‐a-‐virtual-‐economy
• Social Gold • hip://www.slideshare.net/socialgold/social-‐gold-‐how-‐to-‐launch-‐your-‐own-‐currency