A NEW CROWDFUNDING TOOL FOR RURAL COMMUNITIES

Diane Wolverton

Crowdfunding: The New Normal • Crowdfunders raised more than 16 billion dollars in

2014—up from 6 billion the year before. • 34 Billion Projected for 2015

Types of Crowdfunding

Who uses crowdfunding most?About 60% of the users of Kickstarter &

Indiegogo are under the age of 35.

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

Can a Crowdfunding Strategy Help Create Sustainable Rural Communities?

The Spirit of Community

More than a crowdfunding

platform…it’s an “ecosystem incubator.”

• Hardwired into rural communities

• Locally-focused features• Educational system• Community-building• Connection-making

Crowdfunding EducationTeaching 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.

USDA Small Business Innovation Research (SBIR) Program (Rural Development Topic)

Phase I — Feasibility Study Phase II — Demonstration of the Concept Phase III —Commercialization

USDA Small Business Innovation Research (SBIR) Program (Rural Development Topic)

Phase I — Feasibility Study (June 2014-January 2015)

Phase II — Demonstration of the Concept Phase III —Commercialization

During initial testing, four projects raised more than $12,000 in 30 days.

Community. Connection. Capital.

Characteristics of Successful Communities

Feasibility Study Survey Results

Topic Area Satisfaction ( Averaged Responses)

Education 92%

Software & System Use 82%

Communication & Customer Service 85%

Likelihood to Refer 91%

Likelihood to Use Crowdfunding in Future

94%

Community Matters…“Among all the deciding factors that might drive donors, investors or potential entrepreneurs (social and private) to use a crowdfunding platform, familiarity with their community seems to elevate to an important level. The notion that entrepreneurs and investors are separate from the social structure of their communities has been a myth and continues to be. Risks associated with investing in local enterprises as well as risks incurred by social or private entrepreneurs are minimized by the familiarity of the community they are living in. Success in entrepreneurialism requires community support.”

— Roger Coupal, Ph.DDepartment Head,

Agricultural & Applied EconomicsUniversity of Wyoming

The Power of Community (Social Proof)

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. In the TLC model, the Community becomes the team, increasing the success factor exponentially.

USDA Small Business Innovation Research (SBIR) Program (Rural Development Topic)

Phase I — Feasibility Study Phase II — Demonstration of the Concept Phase III —Commercialization

USDA Small Business Innovation Research (SBIR) Program (Rural Development Topic)

Phase I — Feasibility Study Phase II — Demonstration of the Concept

(September 2015-August 2017)

Phase III —Commercialization

Now Accepting Applications for Demonstration Sites

Rural Communities (50,000 or less) Respond to RFP by April 29 Host can be any type of economic

development organization We are looking for communities with great

networks of businesses, entrepreneurs, residents, and community leaders who embrace the tenets of buying, shopping and investing locally.

THANK YOU!

Diane Wolverton 888-465-9622diane@thelocalcrowd.biz