Etsy + Kiva Zip Workshop: How to Crowdfund your 1st Etsy Startup

“So you want to crowdfund your

Etsy shop?” What you need to know about navigating the world of crowdfunding

CROWDFUNDING IN PLAIN ENGLISHLots of individuals contribute small amounts... they add up to fund a creative project, a business or a cause... facilitated by online, digital platforms

Crowdfunding can help lower costs of increasing your etsy shop’s profitability by lowering cost of goods, expanding quality/scale/capability

IF YOU AREa small business in the US

looking to crowdfunding as an alternative source of financing,

there’s good news and there’s bad news.

USA = the home of crowdfunding: 60% of every $ Crowdfunded

So many! Just how

do you choose?

This Webinar.....

“101”4 Different models of crowdfunding

“OMG!”“So many sites...how do I choose the right one for my biz?”

Tips for your Campaign: How Not to Fail

This Webinar.....

“101”4 Different models of crowdfunding

“OMG!”“So many sites...how do I choose the right one for my biz?”

Tips for your Campaign: How Not to Fail

REWARDS DONATION

EQUITY (INVESTMENT) CROWDLENDING

4 different models of

crowdfunding

REWARDS

Contribution > $X, gets you a cool

reward from the startup

DONATION

EQUITY (INVESTMENT) CROWDLENDING

REWARDS

DONATION

“give and get nothing

in return but feelgood”

EQUITY (INVESTMENT) CROWDLENDING

REWARDS DONATION

EQUITY (INVESTMENT)

CROWDLENDING

Peer-2-peer lending for low or no

interest

REWARDS DONATION

EQUITY (INVESTMENT)

crowd earns equity, debt, or a revenue

share for their contributions (pending JOBS act)

CROWDLENDING

Over the years, models have overlapped.

REWARDS DONATION

EQUITY (INVESTMENT) CROWDLENDING

{Note: sizes of the circles roughly indicate current relative site traffic/activity in 2013 according to Alexa}

REWARDS DONATION

EQUITY (INVESTMENT)

CROWDLENDING

Note:Sites selected for discussion are those with highest traffic in each category according to Alexa (Q1 2013), Kiva traffic from multiple Kiva domains incl Kiva.org and Kiva.org

More and more crowd-funding variants

every year...

This Webinar.....

“101”4 Different models of crowdfunding

“OMG!”“So many sites...how do I choose the right one for my biz?”

Tips for your Campaign: How Not to Fail

Q1: What kind of project/ biz is it?

non-profit, good cause

Innovative “sexy” idea with clear revenue

Innovative “sexy” idea -

uncertain success

Not “sexy” but clear revenue

No plan yet, just bet on

Q1: What kind of project/ biz is it?

non-profit, good cause

Innovative “sexy” idea with clear revenue

Innovative “sexy” idea -

uncertain success

Not “sexy” but clear revenue

No plan yet, just bet on

Q1: What kind of project/ biz is it?

non-profit, good cause

Innovative “sexy” idea with clear need, end,

and revenue

Innovative “sexy” idea -

uncertain rev$, date of completion

Not “sexy” but clear rev$, just needs

capital

No plan yet, just bet on

ME!

Q1: What kind of project/ biz is it?

non-profit, good cause

Innovative “sexy” idea with clear need, end,

and revenue

Innovative “sexy” idea -

uncertain rev$, date of completion

Not “sexy” but clear rev$, just needs

capital

No plan yet, just bet on

ME!

Q2:Belongs to these 13 categories:

Art, Comics, Dance, Design, Fashion, Film, Food, Games,

Music, Photography, Publishing, Technology, or Theatre?

Q1: What kind of project/ biz is it?

non-profit, good cause

Innovative “sexy” idea with clear need, end,

and revenue

Innovative “sexy” idea -

uncertain rev$, date of completion

Not “sexy” but clear rev$, just needs

capital

No plan yet, just bet on

ME!

Q2:Belongs to these 13 categories:

Art, Comics, Dance, Design, Fashion, Film, Food, Games,

Music, Photography, Publishing, Technology, or Theatre? N

Q1: What kind of project/ biz is it?

non-profit, good cause

Innovative “sexy” idea with clear need, end,

and revenue

Innovative “sexy” idea -

uncertain rev$, date of completion

Not “sexy” but clear rev$, just needs

capital

No plan yet, just bet on

ME!

Q2:Belongs to these 13 categories:

Art, Comics, Dance, Design, Fashion, Film, Food, Games,

Music, Photography, Publishing, Technology, or Theatre?

Q3:Definitely requires loan

$5,000-35,000 AND your Credit Score > 600

Q1: What kind of project/ biz is it?

non-profit, good cause

Innovative “sexy” idea with clear need, end,

and revenue

Innovative “sexy” idea -

uncertain rev$, date of completion

Not “sexy” but clear rev$, just needs

capital

No plan yet, just bet on

ME!

Q2:Belongs to these 13 categories:

Art, Comics, Dance, Design, Fashion, Film, Food, Games,

Music, Photography, Publishing, Technology, or Theatre?

Q3:Definitely requires loan

$5,000-35,000 AND your Credit Score > 600

Q1: What kind of project/ biz is it?

non-profit, good cause

Innovative “sexy” idea with clear need, end,

and revenue

Innovative “sexy” idea -

uncertain rev$, date of completion

Not “sexy” but clear rev$, just needs

capital

No plan yet, just bet on

ME!

Q2:Belongs to these 13 categories:

Art, Comics, Dance, Design, Fashion, Film, Food, Games,

Music, Photography, Publishing, Technology, or Theatre?

Q3:Definitely requires loan

$5,000-35,000 AND your Credit Score > 600

WHAT CONTRIBUTORS RECEIVE

DONATION + REWARD(pre-selling goods,

pre-determined rewards)

DONATION + REWARD(pre-selling goods,

pre-determined rewards)

DONATION + REWARD(pre-selling goods,

pre-determined rewards)

INVESTMENT (equity, share of

revenue)

INVESTMENT (equity, share of

revenue)

NON-PROFIT (purely emotional/

feel-good)

NON-PROFIT (purely emotional/

feel-good)

Main playersKickstarter Indiegogo rockethub Upstart Prosper Kiva Zip Causes.com

Size / Volume(ave $ fundraising p/day)

$1.04mil n/a n/a n/a $330K$500k (all Kiva)$24k (Zip only) n/a

Failure to meet Goal %

56%90% on projects > $1000

N/a non goal-oriented site

Varies - est 50% 0.5% non goal-

oriented site

Fundraising limits (Whether donation/Loan)

No limit No limit No limitVaries: $100 up to$20,000 for experienced

depends on credit score, $35,000 max

1st loan $5000 No limit

Platform Cost ($paid directly to platform)

5%4% if goal met 9% if goal not met

4% if goal met 8% if goal not met

3%Fees vary by Prosper rating 0.5%-5%

FREENo interestNo commission

Other expenses (not paid to site but incurred based on platform’s model)

Video + Reward + 3-5% credit card processing

Video + Reward + 4% credit card processing

(only late fees)

Interest rate varies: 9%-35% APR

FREEPaypal-Kiva transactions free

4.75% credit card processing

Financial Criteria / eligibility

No No No min FICO score > 640

min credit score > 600

Character endorsem*nt No

Type of business’ restrictions

Art, comics, dance, design, fashion, film, food, video, games, photo, publishing, tech, theatre

Not only arts, but largest crowd-funder for Science and Academic projects

College Grads only No No

GuideStar-verified and active 501(c)(3) nonprofits

Quick overview of numbers (size, fees, costs, limits, etc){note: best avail numbers at Mar 2013, please verify for yourself}

“So now I’ve chosen the most suitable crowdfunding

site or sites for myself”...

What’s Next?

Next, Rise Abovethe Noise

of all crowdfunding campaigns fail.71.3%

This Webinar.....

“101”4 Different models of crowdfunding

“OMG!”“So many sites...how do I choose the right one for my biz?”

Tips for your Campaign: How Not to Fail

Don’t forget to include the crowd-funding platform success and/or failure fees, any credit card fees (usually 2-3%), all reward costs and reward delivery costs.

BUDGET

Find rewards that are exclusive but not costly - name an ice cream flavor after donors who give >$200, free farm tours, studio tours or concert passes, collectables, etc.COOLrewards

CRAFTyour story w/TLC

BUDGET*BUDGET

Watch videos, look at photos or read stories that do well. Learn. Write your own story. Improve it. Run it by people who don’t know you well. Improve it again.

HEART Marketing with no marketing budget is always about social media heart & hustle. Ask friends to share your campaign. Ask influentials to retweet you/email intro you to others. The more people you ask, the luckier you get in social media.

&HUSTLE

ETSY KIVA

Q1: What kind of project/ biz is it?

non-profit, good cause

Innovative “sexy” idea with clear need, end,

and revenue

Innovative “sexy” idea -

uncertain rev$, date of completion

Not “sexy” but clear rev$, just needs

capital

No plan yet, just bet on

ME!

Q3:Definitely requires loan

$5,000-35,000 AND your Credit Score > 600

Your best option is Kiva Zip if...

....If you’re an everyday small business or startup with a clear business plan

AND

.....you could use a 0% interest zero fee small loan <$5000 to help your business start/ grow more profitably....

0% interest, zero fee crowdfunded loans <$5000

99.5% of loans posted are FULLY funded.

Any kind of small business: Cooks, farmers, craftmakers, coffeeshops, home contractors,

beauticians, landscapers, cleaners, etc.

“Just everyday small businesses funded directly by ordinary people’s

generosity - facilitated directly online. No one makes money but you.”

&• “Etsy+kivazip” progam • Getting Kivaʼs ʻcrowdʼ of lenders to support Etsy sellers become self-sustaining• Getting the Etsy community teams to publicly endorse great sellers for interest-free loans• Because they are ʻvouched forʼ qualify for a <$5000 zero interest zero fee crowdfunded loan • funded by a base of 1.3mil registered Kiva lenders from around the world • So far 3 Etsy sellers on Kiva Zip, more on the way

$3,000 loan to hire a stay-at-home mom to help with yarn-making, hire pro photographer

XimenelleYarn Shop

$5,000 loan to expand range to bridal accessories + marketing outreach

PRINCESS PUDDLE DUCK

hairbows

$5000 loan for cold vending cart & equipment for festivals

HEALCREST URBAN FARM

Herbal Teas