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CROWDSUNITE CEO- ALEX FELDMAN What is CrowdFunding? 1

Crowdfunding Class

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Slides from a crowdfunding workshop that I taught at NYU. It goes over what is crowdfunding, stats about the industry, and different types of funding.

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Page 1: Crowdfunding Class

CROWDSUNITECEO- ALEX FELDMAN

What is CrowdFunding?

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crowdsunite.com

Content2

What is Crowdfunding

Industry stats

Different type of crowdfunding

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crowdsunite.com

Traditional3

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CrowdFunding4

PlatformBenefits

1.Validating the market2.User Acquisition3.User Marketing4.Feedback

Challenges

1.Fraud2.Failure3.Need Crowd

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Timeline5

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Industry GrowthM

illi

on

s($)

“If U.S. families devote just 1% of their assets to investing in startups via crowdfunding, that would unleash a torrent of $300 billion annually.“ – Fred Wilson, VC at Union Square Ventures

“At the one-percent mark, globally this translates to more than a trillion dollar market.” – Kevn Lawton, author of the Crowdfunding revolution

*Data from 2013 Massolution’s crowdfunding industry report

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Crowdfunding Market Size

*Data from 2013 Massolution’s crowdfunding industry report

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Crowdfunding Choices8

Equity

Debt

Reward

Donation

Royalty

Self

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Donation9

StatsAverage raise – $1,400

Crowdfunding Industry size – $1.4 Billion in 2013

USA Donation Industry - $300B

10% of charities give less than 65%

In vetro fertilization - $8,000

Sandy – 740 results

Cancer treatment - $4,000

Skate Camp -$20,000

Exchange for Funding

Thank You

Platforms

For

Non-profits, philanthropic projects

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Reward

Star Citizen - $26M, 291,000 people$2M on KickStarter

51 projects over $1M

Music

Largest campaign - $33,000

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Exchange for Funding

Good or service

For

Pre-sale items, have large crowd

Stats

Average raise – $2,300Industry size – $1.3 Billion in 2013

More than 50% fail to reach goal

Platforms

Local Businesses

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Debt

Raised $100M

Crowdfunding for un accredited

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$150M-$200M in business loans in 2013

Total $2 Billion,140K loans Average interest rate over 10%

Exchange for Funding

Interest and principal

For

Need to have cash-flows and collateral,Get lower interest rate and faster approval than bank.

Stats

Average raise – $4,700Industry size – $2.1 Billion in 2013

Platforms

$50M in October, Overall $700M

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Equity12

$20M Raised for 20 companies

1753 companies looking for funding

Exchange for Funding

Ownership of business

For

Growing companies,Exit opportunity

Stats

Average raise – $190,000Industry size – $165 M in 2013

Platforms

$65M in collective investor interest

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Royalty13

Support local businesses

$7M funding

Invest in people

Exchange for Funding

Percentage of the revenue

For

No bankruptcy risks,No equity lossPay only when you make money,

Stats

Platforms