Global Crowdfunding Seminar - Focus Emerging Markets ¬ Wyse and Company Limited- june 14th 2014

Wyse & Company Limited UK Know Factory

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Why is Crowdfunding not just about funding?

John Wyse (Wyse and Company Limited , UK)

Humphrey Akanazu (Wyse and Company Limited, Nigeria)

Olga Galushko (Wyse and Company Limited, Ukraine)

Wyse and Company Limited UKI-Know Factory

Sheffield (UK), Abuja (Nigeria), and Kiev (Ukraine)


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Crowdsourcing: an extraordinary processes which involves ordinary people… Crowd: a group of undefined people involved for their original views or inputs or untapped source of funds


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Crowdsourcing: solvers are self selected …

Selection of Crowd participants: solvers self select themselves to the task. We only find out who has participated ex-post


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Crowdsourcing: a “family” of concepts with novel inputs…

Crowdwisdom

Crowdfunding

Crowdselection

Crowdcreation

Crowd provides funds for new projects in many forms ; i.e. Indie-Gogo; Kickstarter, etc.

Project can be partitioned without loosing its nature; i.e. Amazon’s Turk

Project cannot be partioned; i.e.Innocentive

Crowd selects concepts or ideas that best fit certain criteria ; i.e.Google Corporation


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Crowdsourcing: is it all about «the money»?...

“Three out of four Venture Funded

initiatives fail” WSJ 2012

a different way to measure success?

a different approachs to help develop ventures in Emerging Markets?

?


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Problems of Emerging Markets’ start ups: the issue of funding is just one

Accessing venture capital

Closing a first sales contract

leveraging the innovation potential

hiring skilled staff

utilizing and absorbing knowledge


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The vivacity of the capital market in a region depends on…

a preference for subsidies

the degree of acceptance of third party

investment in own firm

the degree of maturity of different

market segments in the value chain

the physical and cultural proximity of investor and

entrepreneurs

the absence of public schemes to help

SMEs secure their first order


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Not all crowdfunding processes are made the same (I)

Crowd may obtain a tangible item or service in return…. Starteed, Gofundme.com,

b) Reward….

a) Donation based….Crowd may provides a gift for a charitable cause…. i.e. KickStarter , Indiegogo, Ideame.com, Starteed.com


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Not all crowdfunding processes are made the same (II)

c) Equity based….Crowd may invest in a stake in a company… i.e. Sterling Funder

d) Leading debt...Crowd may get paid back over a fixed period … i.e. Funding Circle (US), Zopa, Ratesetter, Lending Club, Prosper, Zidisha, Index Ventures, Assetz Capital,

https://www.fundingcircle.com/us/

https://www.lendingclub.com/

http://www.prosper.com/

https://www.zidisha.org/

http://www.indexventures.com/

https://www.assetzcapital.co.uk/


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Some special cases (III)

e) Performing Arts...

Crowd may help finance artistic endeavours… i.e. Sponsume;

Crowd may fund different design objects..i.e. .Ideame.com; Vakhina; Proyectanos

f) Emerging market design projects….


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An example of a crowdfunidng portal….


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The Crowdfunding opportunityin Emerging markets


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work around problems of corruption, red-tape, lack of well developed equity and credit markets

may prosper even in spite of low strategic promise or poor infrastructural conditions

may not need exorbitant amounts of financing to pursue a new market segment or a new product/service offering.

Emerging market Opportunities: Entrepreneurs


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Benefits of crowdfunding

1) It provides access to capital.2) It hedges risk.3) It serves as a marketing tool 4) It gives proof of concept.5) It allows brainstorming.6) It introduces prospective customers.7) It’s easier than traditional applications.8) It’s free PR.


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Our business CCM Model: Start ups- SMEs

Crowdfunding

Mentoring

Coaching

Precommercial Phase

Commercial Phase


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THANK YOU!

Small Business & Entrepreneurship

Global Crowdfunding Seminar - Focus Emerging Markets ¬ Wyse and Company Limited- june 14th 2014