World Funding


Rest of the world

 

Crowdfunding involves having a group of people/backers – the crowd – who finance your initiative/idea/startup.

It usually takes place on the internet.

The initiative could be nonprofit, political, charitable, commercial or a financing campaign for a startup company.

Crowdfunding involves the participation of many. We have the people or organizations that propose the ideas and projects to be funded, and the crowd of people who support the proposals.

Crowdfunding is then supported by an organization (the “platform”), which brings together the project initiator and the crowd.

There are many types of crowdfunding, which you can resort to for funding your startup. I’ll take you through them and give you some examples.

Equity-based crowdfunding

It’s a type of crowdfunding in which investors buy equity (or convertible debt) in startups. This type of funding can only come from “accredited” investors, who meet some thresholds of wealth or income.

In this category we have AngelList and FundersClub.

Donation-based crowdfunding.

It was introduced by GoFundMe, “the world’s most prominent donation-based crowdfunding platform”.

In this type of crowdfunding people can raise money in the form of charity, for their personal problems, for accidents and traumas, for social causes and healthcare costs.

“Project” Marketplace Crowdfunding.

This type of crowdfunding is so varied and different, many platforms adhere to this category.

A wide range of projects fit in here, such as launching some art – a book, movie, music, paintings – technological breakthroughs and inventions, and non-profit organizations.

Widely known platforms are IndieGoGo, Kickstarter, Quirky, etc.

The startups get funded by backers, and usually there is a percentage from the donors’ sum that you need to return in case you fail or succeed.

Vertical Crowdfunding

This one is something very new and popular. It is industry specific and it has been trending in 2014.

Like CrowdStreet for real estate business projects or DragonInnovation for hardware/device companies, they target specific types of business.

2) Crowd-Funding

Accelerators ::: some maple syrup

Startup accelerators or seed accelerators are built in order to support the rapid growth of the companies which work with them.

They are programs, usually on the Internet, which include mentorship and workshops, courses, which have as their peak a public event or a demo day.

They offer access to technology, office space and great communities, funding, usually in exchange for company stock.

Accelerators can be either privately or publicly funded, and focus on many industries.

There are classic accelerators like Y Combinator, or Corporate-owned accelerators: like Evernote’s accelerator.

While anyone can enter an accelerator, the competition is pretty high, Y Combinator and TechStars have application acceptance rates between 1% and 3%. Moreover, the focus is on teams, not on individuals.

You also have a deadline to fulfill, typically after 3 months, while you receive training and mentoring, and you are expected to grow rapidly. You’ll also get peer support and feedback, which is very important.

Basically, I’ll follow you through 2 types of accelerators:

Accelerators acting like micro VCs early on, where there are many partners, who share, and pool small amounts of money and invest them into many startups.

Such are:

Y Combinator.

Twice a year they invest a small amount of money, about $120k, in a great number of startups( “most recently 68”). Next, they help these companies improve, by moving together with them for 3 months to Silicon Valley, where they work intensively.

Each cycle ends with a Demo Day, when the startups present what they achieved to a select audience.

TechStars.

They provide $118.000 in seed funding, they offer intensive mentorship, a great online community and alumni for 7-10% equity in your company. They suggest that after joining them for 90 days, your company will reach an average of $2M in follow-on investment. More than 35 startups joining them have already been acquired.

SeedCamp.

They provide seed-funding. They have a 3-pillar strategy, helping startups build global companies, by offering Learning, Network and Capital. Initially, they invest from $0-$250K, and they accelerate the startup from seed funding to IPO.

They offer you connections with their Mentors – 1000 Operators and 500 Investors and Founders. They also provide a learning platform which helps founders to access the billion dollar playbook of their Mentors.

500 Startups.

They provide great connectivity, a network of 1000+ founders and 200+mentors, experts in marketing, startup accounting, user testing, product design, sales, etc.

Rockstart Accelerator.

They help and support startups in all possible ways. They offer startups in their program up to 15.000 pounds in seed funding.

They’ll take care of all those annoying papers, such as the legal and administrative distractions and they’ll offer you 99 master-minds with whom to share your ideas and to tackle problems.

However, it will take 8% equity stake. Find out more details from their own founder, Oscar Kneppers:

Accelerators which are backed by greater businesses and firms.

Let’s see:

Mediafax.

It’s a Romanian media company, founded in 1991 and settled in Bucharest. It’s a part of the MediaPro Group and it mainly produces news and photography service, which covers 90% of the Romanian printed media needs and 70% of the national TV and radio stations. In 2003, Mediafax content services expanded to Mediafax Mobility to offer mobile content, to firms such as Orange and Vodafone. Nowadays, Mediafax has 4.5m euros in revenue.

Working Capital Accelerator. It began in 2009. It supports the development of startups. It has supported 179 startups up till now. It offered 109 Grants, 19 startups were funded and incubated, 36 pre-incubated, and they started in 2013 for the first time, 15 acceleration programs. In 2014 (may 26th), 41 projects of Call for Ideas were added.

Hub:raum. It is a German accelerator, belonging to Deutsche Telekom. It provides connection to one of the world’s leading telecommunications companies. It invests in early stage startups, backs them with co-working-space, mentors them and offers them connections.

The Evernote Accelerator. It is a very new program and it facilitates apps which work with Evernote. It comprises 4 weeks, in which teams from different startups study startup curriculums, attend workshops held by Evernote engineers and designers, in the space provided for the activities in the Evernote building. They also get to connect with Silicon Valley influencers. The event has as its climax a demo day, on the 14th of November. Such an event already took place last year, when all teams won their spot with their apps by competing in the Evernote Devcup competition.

Wayra. It’s an English accelerator which facilitates startups in Europe and Latin America. In the first 6 months they will offer your startup up to 50.000 euros. They help you access private funding, such as financing rounds, and public funding, such as grants and subsidies. They even have their own network of Business Angels, mentors and partners. They provide direct management and mentoring, technological resources: Telefonica I+D, which is one of the leading private R&D centers in Spain. It also has one workspace in each of the 9 countries it works with.

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