CrowdFundingBy Sathittham Sangthong (Phoo)GravitechThai (Home of Maker)

Crowd funding is Not New, But Crowdfunding is.

Source : http://www.forbes.com/sites/jimblasingame/2014/08/01/crowd-funding-is-not-new-but-crowdfunding-is/

What is it?Traditional Funding- Large amount from one- A few source

CrowdFunding- Many small sums from

a large group of individuals

The Power of CrowdFunding

A little Money A lot of people The power of CrowdFunding

x =

Crowdfunding Characteristics

• Enabled by internet technologies• Platform• Payment systems

• Leverage social media

• For start-ups and SMEs

• Lack of access to traditional finance

• Platform takes fees on money invested• Minimum investment very low

How does it work?

Source : Working the Crowd, 2013, P.9

How does it work?

Source : Working the Crowd, 2013, P.9

How does it work?

Source : Working the Crowd, 2013, P.9

How does it work?

Source : Working the Crowd, 2013, P.9

Different models

Form of contribution Form of return Motivation of funderDonation based Donation Intangible benefits Intrinsic and social motivation

Reward based Donation/ Pre-purchase Rewards but also intangible benefits

Combination of intrinsic and social motivation and desire for reward

Lending based Loan Repayment of loan with interest. Some socially motivated lending is interest free.

Combination of intrinsic, social and financial motivation

Equity based Investment Return on investment in time if the business does well. Rewards also offered sometimes.

Combination of intrinsic, social and financial motivation

Source : Introduction to crowdfunding,2012, p.2.

Different Platforms

Different Sectors

Arts

Fasion

Food

Comics

Crafts

Technology

Music Photography Film & Video Publishing

Dance

Design

Games

$ 10Potato Salad

Reading Rainbow

Oculus Rift

Zubits

Durio Sound$ 1.5k

$ 29k

$ 250k

$ 500k

Different scale

$ 1 Million

Pebble Time

Some Possible Benefits

• More than money : time, assets?

• Crowds of support – network effect

• Innovative/high relevance ideas

• New types of audience reached

Top 3 CrowdFunding Platforms

CrowdFudning Platform 2014 Volume US Alexa Rank Fee$470M 277 5%

$444M 145 5%

??? 472 9%

Source : http://www.crowdfunding.com/

The Most Successful Kickstarter Product

1. Pebble Time – ($20,338,986) 2. Coolest Cooler – ($13,285,226)3. Original Pebble – ($10,266,845)4. Exploding Kittens card game – ($8,782,571)5. Ouya – ($8,596,474)6. Pono high-fidelity music player – ($6,225,354)7. The Veronica Mars Movie project – ($5,702,153)8. Reading Rainbow – ($5,408,916)9. Torment: Tides of Numenera (Video game) – ($4,188,927)10. Project Eternity (video game) – ($3,986,929)

Case Study

• Mochi – The Monkey Ninja

Case Study

• Zen Dice

Case Study

• AKO Dice

Case Study

• The Naked Pi B+

Case Study

• Durio Sound

Thank youQuestions?

ContactSathittham Sangthong (Phoo)Direct Phone : 082-975-3888

Direct Email : Phoo@GravitechThai.comwww.HomeOfMaker.com, www.GravitechThai.com