Crowdfunding platform list as of Sept 3 2014

Hello readers,

There is a new page on this blogging website that contains a summary of popular crowdfunding platforms.
It is a work in progress and is definitely not perfect, but it does have a lot of data in one spot.
Let me know if you have any information to update the list.

Pitching a Fit

Today, the F50 held a pitch fest for their first season of firms (http://f50.io/) at the Computer History Museum in Mountain View.  The founders of 25 companies presented their business ideas to over 200 investors along with a large room full of interested business founders and ecosystem participants (e.g. consultants, attorneys, and press).  F50 identified these firms as some of the “most fundable start-ups” and then matched them with investor mentors to help them raise capital.  Thus, it is no surprise that many of these firms have revenues and some have angel or VC funding already.  Many have been through Y-Combinator or (and) 500 StartUps Accelerator. Many founders are serial entrepreneurs.  This is not the typical start-up crowd.  They are experienced, savvy and ready to take on the world. 

“The best of the best of the best, Sir.”

It was a really interesting pitch fest with a wide range of ideas.  Some good, some excellent, some just plain bad. 

Trends:

Almost all of them had something to do with the internet.  If the firm wasn’t completely contained on the internet then they relied heavily on it for reaching customers.  Seven were “platforms”.  Seven were market places (think ebay).  Eight were social such as dating, networking, or photo sharing.  (There is some overlap in these categories.) Other start-ups ideas included on advertising, gaming, and sensors.

What not to do while pitching:

Oh yes – it is back - the list of what not to wear (see previous post).  This time I have included what not to do based on what I saw here and comments that I heard.  I got to sit up front with the investors and VIPs and listen to their comments.  It was hilarious. 

#1 – Don’t dress like a slob.  Seriously.

Holy Guacamole!!

For the love of ironing boards everywhere – get one.  Half of the presenters were dressed like “slobs”.  (Direct quote – I can’t make this stuff up.)  One VC said that he was so distracted by the presenter’s horrible clothes that he completely missed what the company did.  Face it, the dress down look is so 2001.  Actually, if you want to stand out, dress well. All of the investors dressed professionally.  If that is who you are targeting, take note. 

Rule of thumb – First Date Attire or Better.  Dress as least as well as you would on a first date.  That is what this is, your first date with someone with whom you will have a long intimate relationship – if it goes well.  Dirty athletic shoes do not impress.

And do us all a favor – take a shower and shave.

One of these things is not like the other...

#2 – Don’t wait until minute 3 out of 4 to tell us what the firm does. 

We really don’t care if the firm has backing if we don’t know what your product or service is.  Same goes for your pedigree.  Give me a clue of what you’re doing before telling me that you are from Ivy League University. 

#3 – Don’t take your phone.

You think that I am joking.  Nope.  It was probably to help keep time, but boy did it look bad.  How long have I been talking?  Wait, let me look at my phone.  Oh, and Mom called.  (By the way, there is someone in the front row with 1 minute and 30 second left signs.)

#4 – Don’t be mysterious about how you will use the money.

Far too few of the presenters discussed what they would do with an investment.  Just because the firm has traction doesn’t mean that you know how to scale.  For all we know, you will spend all of the next round of funding on t-shirts for marketing.

#5 – Don’t read the slides.

Many venues have the technology that displays your slides in front of you in addition to the larger screen for the audience in back of you.  Unfortunately, some presenters now think that just because the display is in front of them, they can read it like a teleprompter.  Not so much.  And the audience might not know that there is a display on the floor in front of the presenter, so it just looks like he or she is staring at the ground. 

#6 – Don’t go over the time limit.

This is really difficult since the time is so very short.  However, you don’t want to be the one where the organizer walks on stage to usher you off.  The audience understands that you don’t have much time.  The audience is also watching another two dozen presenters (or so).  Don’t be rude.  Share the podium. Play nice. 

And you may contribute a verse...

Last night, the Center for Science, Technology, and Society (CSTS) at Santa Clara University held their first MAGIS Dinner to celebrate leaders in social enterprise development.  The two awards were presented to Graham Macmillan of VisionSpring and the Citi Foundation and Sally Osberg of the Skoll Foundation.  Founders and employees of other social enterprises were also in attendance, as well as dozens of supporters and sponsors.  Some of the amazing social enterprises on hand were Angaza Design, Anudip Foundation, Artisan Connect, Givve Collection, Global Women’s Water Initiative, Good World Solutions, Not for Sale Campaign, Nokero, Sankara, Smart Voter, Twothirds Water, World Wide Hearing, and Nazava Water Filters.

What is social enterprise?  People argue about the definition all the time, but it basically comes down to organizations using traditional business practices to solve problems of social welfare.  That means that social enterprises and the people in them are changing the world to be a better place. 

Seeing the work that these people do is both inspiring and humbling.  Most of the time, I sit at my desk overwhelmed by the evil in the world.  Reading the paper and online news gets more difficult each day with the sheer volume of violence and cruelty reported both locally and worldwide.  Heck, I can’t even drive down the street without getting cut off by someone who must be more important than me and is in a very big hurry (I picture that he has to go to the bathroom… and hope that he doesn't make it).  I admit that I vacillate between feeling helpless to why bother.

So, sitting in a room of people who make it their life’s work to make a difference is astonishing. It reminds me that there are good people and the world need more of them.  And when I think that one person can’t make a difference, I can think about this – if Dr. Stanley Zlotkin hadn't started Sprinkles Global Health Initiative, millions of children would be malnourished. If Joseph Adelegan hadn't started Cows to Kilowatts, thousands would be suffering the ill effects of water contamination by slaughterhouse waste.  If Jordan Kassalow and Scott Berrie hadn't started VisionSpring, there would be almost 2 million people who can’t see.  One person matters.

I couldn't help but reflect on my own contribution to society when listening to the stories and feeling rather guilty.  But then, my husband reminded me, we all can contribute in our own ways.  And no, we might not be the next contender for the Nobel Peace Prize or MAGIS Award, but that isn't the point. 

As Ol’ Walt said, “the powerful play goes on, and you may contribute a verse.”   

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FYI - The CSTS has the Global Social Benefit Institute (GSBI) that helps social enterprises develop and grow.  They estimate that the over 200 organizations that have completed the program in the last 11 years have reached over 100 million people at the base of the pyramid.  The GSBI is the cornerstone of the CSTS.  Graham Macmillan is a graduate of the GSBI.  Other exemplary organizations in his cohort include Kiva, Sprinkles Global Health, Cows to Kilowatts, and Whirlwind Wheelchair.  Sally Osberg is the President and CEO of the Skoll Foundation, which invests directly in social enterprises such as Girls Not Brides, B-Labs, Global Witness, Medic Mobil, Kiva, One World Health and VisionSpring. They also support organizational development through programs and partnerships.  They have a new film that summarizes their mission at skollworldforum.org.

Shout out to TestaRossa Wines, REBBL Tonic, and Pisco Porton for their generous donation of terrific libations. 

The World of Entrepreneurship

Over the last couple of months I have been catching up on some travelling, flying to Tel Aviv and Paris to continue my adventures.  No matter where I went, I couldn't help but be struck by the entrepreneurship in every location.  This is no surprise being someone who studies entrepreneurship for a living. But even after all of these years, I couldn't help but be intrigued by the similarities and differences of new ventures around the world.

Take Tel Aviv for example.  What an amazing city of history and innovation!  In the same block that you have a historic site of biblical importance there is a start-up working on the latest technology.  It was inspiring to see a government that promoted not only entrepreneurship, but also the vital infrastructure necessary for start-ups to survive.  They are working to attract funding sources from around the world including venture capitalists and large financial organizations.  Unfortunately, the World Bank ranks the country in the lower half of all countries for registering property, getting electricity, and dealing with construction permits.  And it was obvious that some parts of the country are more developed than others, but by and large - infrastructure was great.  And Israel ranks highly in investor protection, international trade and ease of starting a firm.   (http://www.doingbusiness.org/data/exploreeconomies/israel).  Corporate tax rates are 25% and firms only pay about 5% in social security contributions. The US corporate tax rate tops out at 34% and the social security contributions are only slightly higher at 6.2%. 

In contrast, people that I spoke to in France said that it is very difficult to start a company there.  It is not the red tape, although the counties is ranked low for the ease of registering property.  This biggest complaint was the cost of hiring and paying employees.  Employer paid social security contributions are about 40% of one's salary.  40%! On top of that, firms pay a payroll tax of 5.45%.  Then, the corporate tax rate is 33.33%.  Think of the implications - a firm hires someone at $50K, but ends up paying $72.5K before being hit by corporate taxes.  Even with the strong infrastructure, education, and technology (and pastries), the cost of running a company is high.  Many companies choose to remain small to survive. 

So the next time you take a trip, look at the local companies.  Start-up success is as much influenced by the people who start and run firms as the infrastructure on which it relies.  

Crowdfunding article Posted!- Part 2 (of 3)

Check out the crowdfunding page.

I have finally added Part 2 that discusses the nuts and bolts of crowdfunding Campaigns.  The article talks about the description, video, value to the investor, online presence, fulfillment and more.

Part 3 is coming soon - Caveats.  Stay tuned!

New crowdfunding page here

Crowdfunding is one of the latest buzzwords to hit mainstream America.  In the broadest sense, crowdfunding is a process by which people with ideas can get money (funding) from others (the crowd) to pursue those ideas.  More subtly, crowdfunding can a unique mechanism for sophisticated entrepreneurs to market their products.  However, crowdfunding is not for everyone. 

The new Crowdfunding page (tab above) of this blog is a three part article detailing the ins and outs of this phenomenon.  Part 1 of this article defines crowdfunding and discusses the participants involved.  Part 2 describes campaigns and their components used by innovators to solicit funding.  Part 3 discusses the advantages and disadvantages of crowdfunding and potential pitfalls.