CrowdFund Roundup’s
The Day in the Life of a CrowdCo
Introduction
In building this narrative we are recording the thoughts of two Creative CrowdCos as
they set out to bring their “idea” to market through the Crowd.
We start with our inner belief in the CrowdCreative Process:
• CrowdSourcing allows teams to build where they are planted while accessing
quality resources around the country and around the globe.
• CrowdFunding brings a paradigm shift to the capital formation process of start-up
ventures. It does not replace or compete with Angels, VCs or Banks but fills in
the missing segment of the start-up lifecycle cash flow effectively.
• CrowdMoving our new process initiative takes the wave of open community
participation to its final objective including the crowd in the entire lifecycle of
the product/service. They came and joined in the development and funding of the
project; why not let them participate in the selling and profits of the work they
accomplished.
• CrowdCreative Companies invest in their ultimate customer from the moment
their great idea takes shape and maintain real effective connections throughout the
product/service lifecycle. They have no objections to creative corporate structure
or fear of distributive workplaces. They just feel safer involving their customer in
the process from the very beginning. Crowds make great things happen.
Table of Contents
Table of Contents
Project Update Highlights
Third Step in CrowdCo Lifecycle:
Getting the team ready to CrowdFund.
Set Realistic Monetary Goals
Setting your Perks for Non-Equity Campaigns
New Information from the Crowd…
Personal note from CR Team
This article is a co-operative endeavor of Vision Management, CrowdFund Roundup and the
management teams of MeCareHealth and SAFE Portfolio, LLC. For more information please feel free
to contact Bill Joyce at PO Box 612347, Dallas, TX 75261 – 817-918-4667 – [email protected]
CrowdFund Roundup’s
The Day in the Life of a CrowdCo
Project Update Highlights
Both projects are actively involved in their product model enhancements based upon
information received from the CrowdFunding Campaign already and have chosen to
adjust campaign reporting to every other week. This allows for better assimilation of the
requirements within the corporate business process and allows each development team to
meet the needs of the campaign.
This article will continue to layout the process and procedures we will follow to build a
successful campaign.
Third Step in CrowdCo Lifecycle:
Getting the team ready to CrowdFund.
We are a band of entrepreneurial adventure seekers, long on dreams and somewhat
short on time. We stand on the starting line of a new company being born. As with all
enterprise adventures we always seek our ultimate goal but keep our eyes focused on the
steps necessary to get their
Our first CrowdFunding capital support requires new tasks and disciplines to be put
in place. With the traditional capital raise we select a team member, make them the
finance guy/gal and agree to show up when he/she needs us to answer investor questions.
CrowdFunding changes this process completely.
First – we are going to be communicating with our customer. Not some entity that
only communicates with the executive or board members.
• Second – we are going to be presenting our ‘Brand’ for the first time. Public
awareness is a fickle mistress. Good news builds confidence but bad news can
destroy all. Now this should not be a terrifying process for the team. If you look
ahead in your CrowdCo lifecycle you will see customer relationship and retention
prominently incorporated into your corporate activities. With CrowdFunding they
just get moved up in your plan before or during product development.
This article is a co-operative endeavor of Vision Management, CrowdFund Roundup and the
management teams of MeCareHealth and SAFE Portfolio, LLC. For more information please feel free
to contact Bill Joyce at PO Box 612347, Dallas, TX 75261 – 817-918-4667 – [email protected]
CrowdFund Roundup’s
The Day in the Life of a CrowdCo
• Third – Crowds create questions and questions need to be answered promptly
and properly. One of the most amazing attributes of the Crowd is their
wonderful desire to be right in the middle of the action. Don’t expect everyone
to understand your goals. You need to be ready to hear alternatives to your
vision. In fact relish these inquisitive CrowdVestors. If you get enthusiasm from
potential CrowdVestors and can keep them included in your process you will
see the duplicating effect of the network as they tell their connections about your
opportunity. If they tell two friends and they tell…
• Fourth – Finally do not forget the first measurement of any great enterprise is
the “Added Value” you bring to the Crowd. If you cannot tell a CrowdVestor
what value you provide you will not sell them on your venture.
Now that you have set the focus you can begin to divvy up the daily, weekly and
managerial activities related to your CrowdFunding Campaign.
Have a Campaign Manager – this team member or consulting support contractor is
the point person for all activities. Like any other activity someone takes lead and
orchestrates the team tasks.
o As we go to press I have been approached by two individuals whose
counsel I rely on. They identified the Campaign Manager as a critical and
yet undefined resource. I agree.
Set Realistic Monetary Goals
In the world of non-equity campaigns the mean raise is between $5,000 and $15,000 and
average pledge $27.50. For these campaigns the Campaign Manager is usually the team
member with the best web skills. You know the guy/gal who can at least spell SEO.
Once we enter the realm of Equity CrowdFunding the target raise will be from $250,000
to $1,000,000. No one has captured enough data to estimate the average CrowdVestor
purchase but most of us are estimating between $100 and $200. There will also be (or
should be) communications with Angels and VCs. Everyone should set a policy to treat
Angels, VCs and Bankers just like other CrowdVestors. In other words they are and will
continue to be important to your endeavor.
(Cash Flow Required – Cost of Perk) / Average Pledge = Number of Pledges Required)
This article is a co-operative endeavor of Vision Management, CrowdFund Roundup and the
management teams of MeCareHealth and SAFE Portfolio, LLC. For more information please feel free
to contact Bill Joyce at PO Box 612347, Dallas, TX 75261 – 817-918-4667 – [email protected]
CrowdFund Roundup’s
The Day in the Life of a CrowdCo
Like every other raise – it is in the numbers. This analysis identifies the Crowd Contacts
based upon level. Yes this is swag – you know scientific wild a__ guess, but it is a
required measurement if you intend to succeed. I used the old 9 ‘no thanks’ for 1 ‘yes’ in
estimating the number of Crowd Contacts you need to make.
Setting your Perks for Non-Equity Campaigns
I have attached SAFE’s first draft of its pledge perks. This helps you see the level of
planning necessary for a successful campaign. (Next page)
This is another wonderful exercise for the entire CrowdCo team. When you have
finished the perk list everyone should be excited and maybe even have selected the one
they are going to choose.
Also, get feedback from your portal. Their suggestions should be evaluated and
incorporated where appropriate and their enthusiasm should be an initial measure of
crowd reaction. (No reaction, whatsoever from your platform? Maybe you need to step
back to Day 2’s Vendor Review…)
This article is a co-operative endeavor of Vision Management, CrowdFund Roundup and the
management teams of MeCareHealth and SAFE Portfolio, LLC. For more information please feel free
to contact Bill Joyce at PO Box 612347, Dallas, TX 75261 – 817-918-4667 – [email protected]
CrowdFund Roundup’s
The Day in the Life of a CrowdCo
New Information from the Crowd…
Some may choose to think this information is hidden in the bowels of corporate process
and the Crowd is too dumb to understand. Find one of those – run don’t walk away.
They have forgotten who their customer is.
This article is a co-operative endeavor of Vision Management, CrowdFund Roundup and the
management teams of MeCareHealth and SAFE Portfolio, LLC. For more information please feel free
to contact Bill Joyce at PO Box 612347, Dallas, TX 75261 – 817-918-4667 – [email protected]
CrowdFund Roundup’s
The Day in the Life of a CrowdCo
The
‘statistics’
are
beginning
to
identify ‘trends’ indicating that some
CrowdCos are NOT DELIVERING on their
promised PERKS.
This will and has already begun to
sour the process of CrowdFunding.
If
enough CrowdCos fail in delivery the
entire process will be tainted.
Now
this is not something the SEC or the
Executive Office can solve. This belongs
squarely on the shoulder of the market
process we put in place to govern ourselves.
Yes there is ‘risk’ in any project and the Crowd is more than willing to take risk as
a part of their return on investment. They understand we are building new stuff in a
temperamental market. But left alone, failures not properly managed will be the downfall
of the CrowdFunding experience and the Crowd will not be to blame. We have an
obligation to provide a fully transparent process that allows everyone to see the risk and
rewards available.
The next series of articles needs to be “The Day After the Raise – How CrowdCos
Manage the Capital They Have Been Provided”. Like it or not this is not a lottery – it is
a long term relationship with our customer and we need to stand up to our CrowdCo-to-
CrowdVestor responsibilities.
Personal note from CR Team
Hey CrowdCos (and CrowdVestors) – want the project plan you
saw in last week’s article…
No problem! Just email Bill Joyce and he will send it to you
FREE! Yes you heard me FREE!
(Watch as the tricky networker draws them into his cause with
free offerings… hehehehehehehe…)
Statistics –
Analytical numbers carved out of data that attempt
to tell a story that has already happened. They can
be both valuable and misleading but they do indicate
there is a story…
Trends –
Directional movement that needs to be addressed,
especially if it is in the wrong direction…
Risk –
Measurement of the stuff we don’t know. Whether
we like it or not risk means we have not completed
the job of management.
This article is a co-operative endeavor of Vision Management, CrowdFund Roundup and the
management teams of MeCareHealth and SAFE Portfolio, LLC. For more information please feel free
to contact Bill Joyce at PO Box 612347, Dallas, TX 75261 – 817-918-4667 – [email protected]
CrowdFund Roundup’s
The Day in the Life of a CrowdCo
I had a customer once…
I spent some time with them and let them share my dreams and somehow they turned into friends.
Now I don’t sell anything and my friends always ask to buy into the next product I develop.
Bill Joyce
Part 4
