Startups: Content Could Be the Key to Crowdfunding Success

Amanda L. Barbara headshot Begging might not be so bad.

In its early days, the popular gaming blog Penny Arcade was run purely on donations for more than a year.

“The word crowdfunding hadn’t been invented yet,” said Jerry Holkins, one of the site’s creators. “Back then, people simply called it ‘begging.’”

As the site grew, it became dependent on advertising dollars, but the founders yearned for those early days. They launched a Kickstarter campaign to see if their “begging” model could work again. Their fans overwhelmingly said yes, donating more than half a million dollars to remove ads from the site.

Great content made the difference for Penny Arcade. Dedicated gamers were hungry for the site’s comics and commentary, and they were willing to break out their wallets to support the content.

You, too, can use content to win fans and accelerate your crowdfunding efforts. By providing useful information your audience wants, you can ask for financial support without coming across as spammy or feeling like you’ve resorted to begging.

4 Tips to Make Sure Your Content Hits the Mark

1. Know your audience. Who are they? Where do they live? What are they passionate about? You can’t provide your audience with valuable information if you don’t know who your audience is and what interests them.

Author Janna Leyde is a great example of what can happen when you truly understand your audience. Janna’s father suffered a traumatic brain injury from a car accident that occurred when she was 14 years old. Janna hoped to write a memoir about dealing with the injury. She reached out to survivors of traumatic brain injuries and their families, with the goal of reaching one new person each day to talk about her Pubslush campaign to write her untold story. Her supporters donated more than $15,000 to make her book, “He Never Liked Cake,” a reality.

2. Provide fresh content. Don’t just regurgitate the things everyone else is saying. Be innovative enough to stand out from the crowd, sharing your own unique ideas and insights. Use your creativity and branding power to create a special voice and style people can associate with you.

The content shouldn’t be too self-promotional, either. If you are providing valuable information and unique insights, word will spread, and your brand will earn trust.

3. Engage with your audience. It’s important to not just spew out information, but to also allow readers to comment and create a conversation. The Internet gives businesses unprecedented access to directly interact with customers — use it! Respond to comments, engage in conversations on social media, and always provide a way for your audience to get in touch with you.

4. Know your business model. If you were courting investors in the real world, they would ask dozens of questions about your business, your goals, and where their money will go. While your online campaign might be soliciting hundreds or thousands of micro-investors, the idea is no different. Know your business model and industry inside and out so you can be ready to answer any question that comes up.

Content marketing for a crowdfunding campaign is essentially the same as content marketing for a product or service. People aren’t just investing in the project you’re raising funds for — they’re investing in your brand. By providing valuable information to your audience, you can build trust and interest and drive traffic to your campaign — without having to beg.

Amanda L. Barbara is Vice President of Pubslush. Pubslush is a global crowdfunding publishing platform for authors to raise funds and gauge their audience for new book ideas and for trendsetting readers to pledge their financial support to bring books to life. Follow Amanda on Twitter!

Top 6 Tips for Crowdfunding Your Startup

If you own or plan on starting your own business, you may have considered crowdfunding to raise additional capital. If you haven’t, you should.

It’s quickly becoming an extremely popular form of project and startup funding, primarily since it frees you from having to pay back the interest that goes along with a business loan. Essentially it allows you to collect funds in the form of donations.

While businesses can offer incentives or (now) equity in exchange for donations, this overhead is usually much smaller than what you would be facing in terms of interest payments to a bank.

Crowdfunding also offers a chance to connect with people who are truly interested in what you’re doing and who believe in you on a personal level– not just in your business model.

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Image courtesy of jannoon028 — FreeDigitalPhotos.net

There’s no question that crowdfunding is a workable and viable financing method; so for entrepreneurs looking to get on board, here are few tips to take note of moving forward:

1. Plan a marketing campaign — Your crowdfunding campaign will only yield returns under an effective marketing campaign. Make sure you sketch out a marketing plan ahead of time and avoid the “build-it-and-they-will-come” mentality.

2. Research and know your target audience — When you do go to market your crowdfunding campaign, you need to know who to market it to. Try and identify those who are most likely to donate and make sure they know about your campaign.

3. Create a pitch video for your project — A pitch video should be a short, 30-second-or-less clip explaining your project, what it’s about and why you’re asking people to donate. While it should be short and to-the-point, it should also be convicting and passionate.

Here are a few helpfulexamples.

4. Leverage your social media following — Businesses that have a substantial social media following have a tremendous opportunity to get their campaign in front of a lot of eyes. Use your social media account as a component of your marketing campaign; though make sure not to put all your eggs in this one basket.

5. Have incentives — Smaller projects can sometimes get away with not having any incentives and just asking for donations. However, incentives are always going to increase the likelihood that people will donate. Whatever those incentives might be, make sure to keep it low-cost so that you’re not needlessly increasing overhead.

6. Have a spending plan in place — Once you start to bring in money, you’ll want to have a plan in place for how you eventually intend to spend it. In fact, it doesn’t hurt to have this information available to potential donors from the beginning, so that they know exactly how their money is being used.

Also be sure to follow up with those who donate to let them know how you’re using their money and what level of success your project is seeing.

Not a Passive Solution

On the surface, crowdfunding might seem like asking for a handout or getting free money; however, that’s not the case at all.

Crowdfunding isn’t a passive solution to your business project; it requires a tremendous amount of work and preparation, both before, during and after you launch the campaign. While it does give you more flexibility and independence than traditional methods of financing, it still requires you to be sharp and well-prepared for the task at hand.

That being said, if you can be proactive and thorough about your approach, a crowdfunding campaign could be ideal for your business needs.

Camille McClane is a freelance writer and online entrepreneur who hopes to have her very own business someday. Working withHostPapa has given her the opportunity to share her knowledge of the online world, including SEO and social media marketing. Entrepreneurs today have so many options, and she highly encourages others to explore all of them!

Circle Helps Families Redefine Internet Use

Recently, I downloaded the Kindle FreeTime app for my Kindle Fire. It allows my boys to essentially have their own Kindles within my Kindle, complete with parent controls and set time limits on games, books, and apps.

It’s worked beautifully. The boys are slowly getting acquainted with technology, but I don’t have to worry about them racking up Angry Birds charges by accidentally clicking through to the Internet. And the time limits I’ve already programmed in keep us from fighting over when Kindle time is done.

This is great for my kids now, but how am I going to help them manage that time as they get older? And, frankly, my husband and I need a little control over our devices, too. With our jobs, it’s really easy to get sucked into social media, emails, and texts, even during our limited family time.

It’s one of those problems I have, but I didn’t really realize I had it until I got an email explaining Circle. All at one time, I was made aware of the problem AND the solution. I love that.

Circle works as a kind of middleman between the home router and the different devices used by family members. Through an iOS app, the administrator can manage everything from how long someone can use social media to which category of websites kids are allowed to access. There is also a “pause” mode, ensuring a device-free dinner or family time.

I know what you’re thinking. “My kids can figure out how disable that in 2 seconds flat.”

The team at Circle has thought of that. The device has no off button, so it can’t be turned off. If it is unplugged from the wall, it continues to run on the internal battery. When that battery starts to die, the administrator receives a notification on his or her cell phone. For now, that’s as failsafe as it gets.

Using Circle in the home can ensure that everyone is learning to manage their online time responsibly, adults as well as children.

“As a parent, we have an obligation to learn how to live with technology and help our children explore the internet in a balanced, safe and smart way,” said Circle founder and CMO, Crystal Wiley in a statement. “Circle empowers me to stay on top of and effectively examine my household’s internet habits, and provides tools to improve our family’s online experience.”

Taking a page from Apple’s playbook, the team at Circle has made the device simple and beautiful. The tiny box will fit into the décor of any home, without all the wires and black boxes we typically associate with technology.

Circle recently announced a new Kickstarter campaign, aimed at raising the money they need to bring the product fully to market in 2014. As of publication, they were at X of their $250,000. If you’re like me and thinking, “Hey, I didn’t realize I need that, but I do!” head over and pledge a few dollars.

Scholarship Funds Set Up On Indiegogo For Teenage Pennsylvania Heroes

Back in July a 5 year old girl named Jocelyn Rojas was abducted from her Lancaster, Pennsylvania home. Meanwhile an incoming freshman, 15-year-old Temar Boggs, was helping a neighbor move a couch into her home. While they were moving the couch, Rojas’ mother hysterically asked them of they had seen her daughter. Boggs and friend Chris Garcia immediately joined the search for the little girl by foot.

Many sites, like the Huffington Post, reported that the two teenage boys thought it would be more effective to continue the search on their bikes. The neighborhood they all live in is filled with dead ends and strange cul-de-sacs. The local police were already on the scene and congregating at some of the intersections in the neighborhood. This made the abductor drive in and out of the backstreets and look very suspicious.

Boggs saw that suspicious maroon car and kept up with it on his bike for 15 minutes, eventually making eye contact with the suspect and the little girl. The suspect eventually wanted to flee and knew his cover was blown, so he pushed the little girl out of the passenger seat. She ran straight to Boggs. Many news outlets report that once in Boggs’ arms, the young Rojas didn’t want to leave the boy’s protection. He eventually convinced her that it was safe to go with the police.

If you choked up a bit during this story, you did the same thing as Mary O’Donnell, a complete stranger from Dunkirk, New York.

“I just felt like, ‘God, I would love to do something for these kids’,” O’Donnell told Lancaster Online by phone. “And I figured there were probably lots of other people who felt the same way.”

She jumped into action, launching a college fund campaign on popular crowdfunding website Indiegogo. Now we typically cover Indiegogo when someone is creating a new and exciting gadget or product. We’ve even used Indiegogo to crowdfund our sneaker strapped startup road trip. But after seeing how easy it was for O’Donnell to put some action where her mouth was, we found this story about crowdfunding to be an amazing one.

O’Donnell set out to raise $10,000 which she planned to give to Boggs and Garcia’s families for college. However, four days after putting up the site it was already over-funded. In fact with 23 days left, as we publish this story there is well over $15,000 raised. It looks like they’ll have no problem clearing $25,000.

Right about the same time David Reed, a 59-year-old retired pilot from Missouri also established a fund for the boys. He is hoping to raise $100,000.

“I’m sure that’s a lucky expectation, but with the cost of college these days, I figured it would be great to help them out. They certainly deserve it,” Reed said in an interview. His fund has raised over $2500 to date.

Tamika Boggs, Temar’s mother, has also set up a scholarship fund in Lancaster, Pennsylvania. More information on that can be found here.

Crowdfunding will be a hot topic at this national startup conference.

Crowdentials Makes It Easier to Crowdfund Investors

There’s been a lot of chatter about the April 5 signing of the JOBS Act. Most people in the startup community are especially excited about the possibility of offering equity via crowdfunding platforms.

What many have missed in all the exultation is that, while it’s easier to offer equity, the standards for investors have risen. It’s now more difficult and invasive to prove you’re an accredited investor, but companies have to take “reasonable steps” to ensure their investors are accredited. This means more intrusive questions that few investors are willing to answer.

As Richard Rodman, CEO of Crowdentials, puts it: “There are two sides to this ruling. On one side, the bar for advertising has been lowered. On the flip side, the bar for verifying accredited investors has been raised dramatically.“

Crowdentials is on top of the new problem. This week they launched the Certified Accredited Investors (CAI) program. The program will use a simple form and third parties to verify that an investor is accredited. After that, they will certify that the investor is accredited. No need for every crowdfunding platform to have access to your bank statements or tax records. The program is secured by multiple passwords, randomly generated IDs, and pages that expire within a certain amount of time.

“Transparency with privacy” is the goal of the new program.

Crowdfunding platforms that expect a big need can license the technology based on monthly requests. Individual companies can use the service just once or twice for a smaller fee.

Crowdentials is accelerating at the new FlashStarts accelerator in Cleveland. Investors, crowdfunding platforms, and statups can check out the new program on their website. Below is an infographic explaining how it all works.

Ohio Startup Crowdentials Launches Crowdfunding Compliance Platform

Crowdfunding is the hottest space for startups right now. And now, with changing regulations, it could get even hotter.

The Jumpstart Our Business Startup Act was passed over a year ago, paving the way for crowdfunding startups to offer equity. After the bill passed in both the Senate and the House it was then referred over to the Securities And Exchange Commission (SEC) to come up with the regulations for crowdfunding.

The JOBS Act has a lot of regulations to follow, including the fact no individual making less than $100,000 can invest more than $2000 or 5% of their net worth. Crowdfunding is going to spawn a whole new type of investor and there are currently no regulatory software programs out there. That’s the guts behind Crowdentials.

Richard Rodman, the cofounder of Crowdentials, spoke about crowdfunding in February at the Everywhereelse.co Startup Conference in Memphis. He founded the company with Chief Operating Officer Rohan Kusre and Chief Technology Officer Max Heckel. The three came up with the idea for Crowdentials in April and were recently accepted into the Cleveland-based FlashStarts’ startup accelerator program.

While the SEC is still finalizing its regulations, the Crowdentials technology is ready to go. “Our compliance solution is all variable-driven and will adapt to any regulations put forth,” Rodman said in a statement. Once the regulations are officially complete, the entrepreneur plans to launch “within minutes.”

In the meantime, Crowdentials is preparing a collection of multi-media resources and guides for both crowdfunding rookies and experts. In addition to teaching the basics, the comprehensive suite will cover the nuances, regulations, risks, and opportunities associated with equity crowdfunding.

Crowdentials’ technology ensures that investors, businesses, and platforms are following the SEC’s rules. According to Rodman, “Crowdentials is the vital link between the SEC regulations and all crowdfunding parties”.

Individuals who gain compliancy through Crowdentials can trust that they are abiding by the regulations, and startups can feel confident that they are raising money through compliant individuals. Rodman believes the SEC’s regulations are meant to protect the new crowdfunding population from fraud and financial distress. “That’s why compliance is so important,” the entrepreneur said. “When everyone is aware of their level of compliance, we can make more educated investment decisions.”

Crowdfunding has spawned hundreds of crowdfunding sites that will help connect would-be investors to startups and other small businesses’ needing funds. Now startp founders are finding ways to support the crowdfunding economy. Cowdfunding vetting companies, insurance companies, and even discovery companies have all popped up over the past year with more expected when the rules change to allow equity investments.

In the meantime feel free to check out Crowdentials at crowdentials.com

7 key elements of a successful crowdfunding campaign.

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7 Key Elements Of A Successful Crowdfunding Campaign

Crowdfunding can be an effective tool for accomplishing your startup goals. Whether you’re looking to jumpstart your marketing efforts, expand your customer base, or reach out to friends and family for funding, crowdfunding provides a platform to rally support around you and your company. Having worked with hundreds of entrepreneurs who have conducted successful fundraisers, we have distilled seven key strategies for launching a successful crowdfund:

Tell your story. As the old adage goes: facts tell, stories sell. When it comes to eliciting customer engagement, a campaign with a good story is an unparalleled strategy. Did you experience some kind of obstacle on your path to entrepreneurship? Did a major life event influence your career choice or business decisions? Tell your story in your crowdfunding pitch to make a connection with backers and encourage engagement.If you don’t have a personal story to share with your audience, share facts and highlights about your startup, product or vision instead. Describe the problem (and severity of the problem) your product will solve, or discuss the vision for your startup. Keep your tone and messaging personal to make backers feel closely connected to you and your project.
Provide value for value. Crowdfunding campaigns hinge on reciprocity. If your startup offers fantastic products, rewards or opportunities, you’ve created a huge incentive for backers to pledge to your campaign. When choosing your reward tiers, reflect on whether the incentives would appeal to you if you were the consumer; ask friends, family members and business acquaintances for their honest opinions as well.
Introduce scarcity. A basic law of economics dictates that scarce supply inherently creates greater demand. Create greater demand for your startup by limiting one or more of the higher level rewards to just a few — this will inflate demand for those rewards and result in higher pledge amounts for your crowdfunding campaign!
Create a marketing event. People love to feel like they are part of something bigger than themselves. Try to build a feeling of excitement and rally others around your crowdfunding campaign by tying the launch to a large, well known event. You can connect your product to a holiday, sporting event, or season to increase the momentum surrounding your launch. You can leverage the emotional connection surrounding these events to get people excited about your product and engage them in discussions.This is especially useful for connecting with backers through social channels, capitalizing on trending topics and popular hashtags to get more eyes on your fundraise!
Highlight examples of social proof. Going back to the human desire to feel like a part of something bigger than themselves, most people don’t want to be the first or only supporter of a crowdfunding campaign — they want to see other influential advocates joining in. Do you have someone notable as an adviser, backer or endorser of your startup? Share your list of partners and patrons to give confidence to new backers and let them know that they won’t be the only one at your party.
Build credibility and legitimacy. Many backers will believe it when they see it. In other words, they require some kind of evidence that your startup is legitimate and picking up steam before deciding to back your crowdfunding campaign. Show your backers what they’ll be supporting in detail — how it works, how you came up with the idea, and even pictures or videos if you have a prototype. Remember that you will likely never meet your backers, so the more proof you can provide that your startup is legitimate the better.
Interact with your supporters. Don’t leave your backers in the dark for weeks after they’ve supported your project. Interact with your audience through frequent updates, thank-you emails or social media outreach, and responses to their questions and feedback.You can build anticipation and increase engagement in many ways. Post updates counting down to a big surprise regarding your project, conduct a product giveaway, or even host a contest involving your crowdfunding campaign. The opportunities here are endless and can be tailored for your specific startup.When interacting with your backers, always encourage an open dialogue and engagement. In general, people would rather talk than listen. Treat your updates and outreach as a conversation rather than a one-sided message.

Eric Corl is the Co-Founder and President of the crowdfunding site Fundable.com. Eric has been on the founding team of three successful startups including Fundable, IdeaBuyer and Startups.Co, all of which have focused on getting early-stage startups to market quickly and effectively. He is also a partner at Virtucon Ventures, an early stage incubator that brings new ideas to market.

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, the YEC recently launched #StartupLab, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses via live video chats, an expert content library and email lessons.

Now that you’ve got that down check out 12 Tips For Crowdfunding Your New Startup

Ooworldcoop Biggest Mover At OneSpark Day 2

The OneSpark staff just announced the day 2 biggest movers in the crowdfunding voting for the crowdfunding festival. Over 500 creators are competing for there share of a $250,000 pot that will be distributed on Sunday to help launch these creations and take these projects, businesses, startups and inventions.

There are 4 main categories: Art, Music, Science and Technology there’s also a 5th “other” category,

Oooworldcoop, a technology startup trying to mesh Facebook with EBay in a social marketplace platform, as a co-op was the biggest mover in the tech category today.

Yesterday’s biggest mover was Aurora, a local music discovery app.

Here’s the complete rundown on video:

Oh yes! We have a lot more OneSpark coverage here

After 24 Hours Local Music Discovery Statup Aurora Is The Biggest Mover At OneSpark

Aurora,OneSpark,OneSpark standings,crowdfunding,vote

Angel Ayala Torres pitches Aurora At OneSpark (photo NMI 2013)

At 5:30pm the OneSpark staff took to the stage at Hemming Plaza and announced the biggest movers in the voting for OneSpark creators. Creators come in four categories; Art, Science, Music and Technology, with a fifth category for “other”.

Besides the biggest movers OneSpark had another huge announcement and that was that 20,000 people came out on Wednesday night for the opening ceremonies and entertainment district as part of “The World’s Crowdfunding Festival”.

464 creators are registered to receive the crowds votes and here’s the biggest movers after the first 24 hours.

Art

3. 20 Murals
2. One Wall
1. Rethreaded

Music

3. Girls Rock Jacksonville
2. Elestial Sound
1. Fathomsphere

Science

3. Kona School
2. One Food Park Project
1. Tiger Trail

Tech

3. Nerdular
2. The Forge
1. Aurora

Other

3. Live for today foundation
2. Five and Dime
1. 123 Fresh

We’ve got more incredible OneSpark coverage here at nibletz.com

Jacksonville Jaguars Are “All In” OneSpark The Crowdfunding Festival

Jacksonville Jaguars,Brian Sexton,startups,crowdfunding

Jacksonville Jaguars voice, Brian Sexton, MC’s OneSpark’s opening ceremonies (photo: NMI 2013)

We’ve been to a lot of startup conferences, festivals and events, and aside from the world famous SXSW, I’ve never seen a city so supportive of an event like this, especially a first time event. The entire city from the municipal government to the chamber of commerce and all of the agencies in between are truly engaged with OneSpark.

Police officers and Sheriff’s officers on loan to the downtown area, know where everything is, ask about creators, and projects and heck we’ve seen a few cops taking iPhone pictures for passerbys. In talking with some of the officers, they are all excited about OneSpark and what it means to downtown. “Big festivals and events like this usually happen across the bridge, OneSpark is great for downtown”, a Sheriff’s deputy who asked to remain nameless because he was on duty told us while we were walking toward Hemming Plaza.

One organization that you wouldn’t think would necessarily be involved in an event like OneSpark is “all in”, and that’s the NFL’s Jacksonville Jaguars.

The voice of the Jacksonville Jaguars, Brian Sexton, was the MC for the OneSpark opening ceremonies. While he talks for a living, on the stage at OneSpark he worked from a set of notes but you could easily tell that he knew all about OneSpark, adlibbing about the founders, the event and the creators. Sexton’s familiar voice to the resident’s of Jacksonville serves as another reminder that the whole community is all in.

Jaguars cheerleaders were also mingling throughout Hemming Plaza all afternoon long, even lending a boost to one of the presenters during the afternoon pitch sessions.

As part of the opening ceremonies the cheerleaders returned to the stage to accompany the Jaguars drum line who played a nice ten minute set to warm up the crowd, pep rally style.

Of course that’s just the beginning. Jaguars owner, Shahid “Shad” Khan, a local businessman and entrepreneur is notorious for supporting downtown causes. For OneSpark though his Stache Fund (a play on his signature moustache) has committed $1 million dollars to the event and the crowdfunding prize given out at the end of the festival based on voting.

Luckily for Jaguars fans we’re in the thick of the offseason, but nonetheless this isn’t just an “appearance” for anyone associated with the team, like the police officers, city councilmen and women and others, the Jaguars are all in for OneSpark.

We’ve got more OneSpark coverage here at nibletz.com The Voice Of Startups Everywhere Else.

OneSpark Comes Alive In Downtown Jacksonville

Downtown Jacksonville has come alive with thousands of entrepreneurs, do-ers and creators in the first of it’s kind Crowdfunding Festival called OneSpark.

The five day festival runs from now through Sunday. Creators in music, art, science and technology are all showing off their wares while also competing for attendee dollars and attendee votes.

The festival has taken the crowdfunding concepts introduced by sites like kickstarter and Indiegogo and brought them offline and in person to hundreds of venues throughout the downtown area of Jacksonville.

Nibletz is on the ground in Jacksonvillr and we look forward to introducing you to the creators from across the country and around the world, exhibiting here at OneSpark.

But make no mistake about it, this is far more than an exhibition. All of the creators (startups) are looking for people to crowdfunding their ideas in person.

As for the voting, OneSpark has over $1,000,000 committed for a fund that will distribute money to the creators with the most votes. One of the biggest supporters of OneSpark, and the biggest contributor to the fund is Jacksonville Jaguars owner Shahid “Shad” Khan.

Throughout the event creators will be pitching their ideas to the audience at pitch stages set up all over downtown.

Today all ready we’ve seen a very innovative startup called Quick Solar. This company is working on a drag and drop platform for homeowners and other interested folks to drop solar panels on google maps images of their home.

Quick Solar will take these users through the cost saving benefits of moving to solar energy and eventually the company will link with providers that can install your solar system.

Creators from every corner of the globe and business are here. We also saw crowdfunding at the local level with Red Sable Art Supply.

This company is hoping to create an art supply store and collaborative work space for artists in St.Augustine Florida.

Currently, artists in the area are driving 1-3 hours away to find an adequate art supply store where they can learn about their supplies, techniques and actually squeeze bottles, feel paint brushes and talk to real humans.

Stick with us for OneSpark coverage here.

Huge Crowdfunding Festival: One Spark Kicks Off In Jacksonville Next Week

The first OneSpark festival will kick off next Wednesday night in Jacksonville Florida, and it’s going to be huge. The festivities kick off at 6pm at Hemming Plaza with an opening ceremony.

The kickoff event will feature party band The Sunbears, free food, drinks and plenty of opportunity to network with creators from all over the world.

Once the event kicks off Jacksonville will turn into one huge in person crowdfunding festival from Wednesday (April 17th) through Sunday (April 21st).

What is a “crowdfunding festival”,

Well think SXSW music and SXSW interactive meet in Jacksonville Florida, where the weather looks to be perfect. Then add creators who’ve created something in either the arts, music, science or technology. Now think Kickstarter and taking those project creators and bringing them into the real world.

This is the first festival of it’s kind. Creators will be staged in venues throughout downtown Jacksonville where attendees will be able to see their creations, ask questions, hear pitches and then decide if they want to crowdfund the creator in person. Talk about eliminating the risks of online crowdfunding.

Event organizer Elton Rivas and the OneSpark committee have wrapped the crowdfunding concept up into a huge event that has three main focus areas:

The creator zone: This is where you can go from venue to venue and see all of the creators and their creations, think gallery hop with some ultra cool new ideas and creativity overflowing like a volcano.

Pitch Decks And Stages: You’ll be able to hear live pitches and keynote speakers throughout the five day festival in these areas.

Entertainment District: here OneSpark will showcase all of what Jacksonville has to offer in the entertainment realm. Party with creators, VIPs, A-listers and jam out to some of the best musical offerings in Jacksonville.

Learn more about OneSpark at beonespark.com

Stay up to date with our OneSpark coverage here.

Crowdfunding Creates Great Customer Base

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(image psmag.com)

Drive Revenue, Customer Development Through Crowdfunding

One of the biggest advantages to raising funds through kickstarter is the potentially broad community of backers formed around the fundraising campaign. These backers create an instant base of potential beta testers, early adopters, customers, suppliers, evangelists, and twitter followers (and retweeters).

New and established companies should consider how crowdfunding can be used to generate revenue (as opposed to investment). People who have skin in the game, even a small amount, are much more likely to be loyal customers, give valuable feedback, refer you to new customers, and help the company in countless other ways.

Here are some scenarios that we could see playing out:

1) Growth Stage Startups: A startup like Birchbox with over 100,000 subscribers closes a $25 million Series C financing round. It then allows each of its customers the opportunity to participate in a $1M crowdfunding follow-on round on the same economic terms. Their current customers would be thrilled to have the opportunity to participate in the upside of the Company and, with skin in the game, would be more likely to recommend the product to their friends, give feedback, and help the company. More people would want to become customers in order to be part of the “club.” Also, because this would be a follow-on to a venture backed investment, many of the concerns about fraud are minimized.

2) Local Franchise Businesses: A local business like Vezzo allows everyone within its zip code to participate in a crowdfunding round for purposes of opening a new store. Local investors will become local customers and evangelists and suddenly the pizza stores have hundreds of new local people financially incentivized to promote the new and current pizza stores.

3) Early Stage Startups Requiring Critical Mass: Some businesses (particularly social media) don’t work without a critical mass of users (see facebook, twitter, foursquare, quantia MD, quora, lawpivot, etc.) to create network effects. Even if a company is capable of raising money through the traditional angel or VC route, it may actually prefer to go with a crowdfunding round in order to gain access to this potential early user base. After a successful crowdfunding round, the company would be able to tap into hundreds or thousands of early adopter types with skin in the game, forming the necessary critical mass.

4) Early Stage Startup Customer Development: One of the key tenets of Steve Blank’s customer development principles is to get customer validation prior to going through the expense of creating a product. You would do this through surveys, landing pages, mock screen shots, and letter of intents where potential customers agreed to be early users. Getting a customer to invest in a product before it is created may be the best way to validate the product before it is created and will be a great indicator on whether a customer would buy, or at least try, a product once created.

The feasibility of each of these scenarios is highly dependent on the rules that the SEC ultimately comes down with on what can be contained in a crowdfunding notice and how it may be delivered.

What else? How else could crowdfunding be used to generate revenue?

This post originally appeared on the seedinvest blog one of our great content partners. Check out the whole seedinvest blog here.

58% Interested In Startup Equity Investments

Guest post by Andrea with SeedInvest.com

A new study conducted by EarlyIQ, the Crowdfund Professional Association (SeedInvest sits on the Executive Committee) and Crowdfund Capital Advisors has just been released, bringing with it some very encouraging statistics. The first national study of its kind, the study was an online survey of 480 respondents nationwide (with a minimum of $25K annual income), and found that 58% of all respondents indicated a high interest in early stage equity investment.

This figure was obtained by the fact that when asked to indicate their level of interest in equity crowdfunding on a scale of 1 to 10, 58% were in the range of 7 to 10. 22% fell into the 1 to 4 category, which meant little or no intent, 20% chose 5-6, which meant they were unsure. The survey also found that investors were likely to make two to three investments annually, giving on average slightly under $2,000 towards each investment. SeedInvest advisor Jason Best remarked, “The passage of the JOBS Act was a key milestone for democratizing capital in the US. This research demonstrates the broad appeal in middle-America and we believe demonstrates a mandate rollout of equity crowdfunding in the US.”

While we are excited about the public’s enthusiasm towards crowdfunding, perhaps the most important fact to consider from this study is that investment intent quadruples overall when a neutral third party provides review of the management team. When respondents who were likely to invest and had an annual income of over $75,000 were presented with a company of which they had no prior knowledge, 68% said they would invest only with third party information, with a further 16% saying they would invest even if there was third party information of a similar company but none of the target company itself.

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