 My name is Premal, and before we get started on this crowdfunding panel, I wanted to introduce a social entrepreneur, Julia. Julia is launching a coffee-related social enterprise to help coffee farmers in the Philippines. She's been at it for six months, and one of the things I love most about Socap is that it's not only about some of the bigger brands in the space, but we show love to the social entrepreneurs who are at a really critical early stage. And so with that, Julia, do you want to come up here and tell us about Kape Maria? Thank you. Hello, everyone. My name is Julia, and I'm the founder of a coffee social enterprise in the Philippines called Kape Maria. My vision is to build coffee roasting and packaging facilities and coffee farming communities across the country to provide sustainable livelihood and to encourage the movement of urban poor back to the provinces. To support these facilities, we conduct market research to innovate new coffee products. 75% of total consumption in the Philippines is instant coffee, and we want to create new products for that for the local market. We also provide branding and distribution of the finished products to the local market. I've tested three coffee varieties in 200-gram bags and received positive customer validation. However, I currently use a third party roaster. I'm excited for this session because I hope to raise money through crowdfunding to build my pilot coffee roasting and packaging facility in a coffee farming community in Bulacan, Philippines. Thank you. Now let me hand you back over to Pramal. So I thought that what we could do in this session is before we really got into the Q&A and the discussion, I wanted to make sure that each one of these entrepreneurs here had an opportunity to explain what their site does or kind of the data that they have just to kind of get the fundamentals out of the way. And what's really amazing is that each one of these entrepreneurs, when we think of crowdfunding, represent kind of different investment vehicles or different ways that the funds would move. So ranging from debt to project-based direct cash transfers where you might get some kind of reward to actually donations with Razu to equity investing that may come later next year depending on how the jobs act goes. So basically, why don't you start with just explaining what Microplace and PayPal are doing and some of the data that you guys have. And if you take maybe about five to seven minutes to just get some foundational context for the audience, I think that'd be really helpful. Thanks, Primal. I joined six months ago, so it's kind of fun. But I was around watching the beginning of Microplace as one of its issuers with Calvert Foundation. So it's about six years now. And I was laughing with Primal earlier, because I think I own little pieces of everything that's available to do up here and will be available to do when the crowdfunding thing comes through. I did my first Kiva loan in between Bill Clinton and before Oprah, so in that early time phase before things went well. And I was one of the first Microplace investors. And what Microplace is, from a founding philosophy, we wanted to find a way to bring impact investments in microfinance through to a broader, anyway, domestic U.S. audience where you can get a return. And it turns out that very simple premise involves all sorts of government agencies and regulation and all sorts of fun to make that happen. So we went through all the fun of becoming an SEC registered broker-dealer and all the fun of being... And so it's a good news-bad news process. The good news is I think that... I'm looking at my screen, move around here, sorry. The good news is the one with the funny bar charts is me. I don't know if that's showing up top. No, it's not showing up top. Yeah, okay, so the one with the bar charts is me. So one of the things that when we think about the market and we think very broad terms about who are these people we're trying to invest in and where are we trying to get the money from. Anthony Buglevain was talking about the other night, trying to explain this to your family over Thanksgiving and my in-law test is how I refer to it. First thing we did six months ago was to go, let's go talk to the in-laws. Let's go see what they think about this very broad firm, very broad field rather. Where do they want to put money? What are their basic concepts of what we're doing and what makes sense? And so I have some incredibly complex and hard to read slides, which I will try to make a little less incredibly complex. But broadly, when we think about head and heart, when we think about the space in between a pure financial donation and a pure investment, whatever that means, and there's all sorts of fun issues with market rate and all that great stuff. But within these motives, we're trying to camp out in that space in the middle in some way and try to combine these entities in a way that's sustainable, that's positive, that's all these good things. What do people believe about that? Since it's a relatively new way to look at it. We tend to be in a very XY type Western culture that's looking for a very simple map of where they fit in when you start blending things that gets uncomfortable. So we ask people on a broader investors, in this world of imaginary investments, we won't give you any specifics yet, but in a world of investments that are seeking to do both these things, is it believable to you that an investment can create and drive social change and that you can earn returns? Very simple, right? We'll keep it real easy. And 24% said neither goal was believable when you combine them. So a quarter of the people that we go out to in the investing public, not even particularly believe that. And then we started breaking out on the pieces of somewhat and a little less. And so it turns out that 59% think at some level they're both believable. One of the challenges early on for us, I think is our target market has been everyone. Everyone can do X, Y, or Z. And everyone isn't only a target market. So we're trying to narrow down and figure out where this makes most sense. But as you go out as entrepreneurs, I think it's not a bad idea to understand that there's 25% of the people you're going to talk to that do not believe these two things are going to combine. This is a starting point. Can you grab the next one real quick? Oh, I have a clicker. Thank you. The next thing we ask people is, okay, so if you're an investor and you haven't really heard of this space so much and you're hearing about it for the first time, where do you think you would want to invest? Where would you want to see your money do this combined bit of good? And I guess not surprisingly from the time we're in now, the majority you can see is in North America. 77% of Americans anyway said in the U.S. and 74%, the slightly smaller sub-segment said local. So it will come as a big surprise to all of you that both Kiva and Microplace in the next year will be offering more domestic offerings, completely unrelated to this data, I'm sure. But we're all very focused on how we can be doing more to diversify this. While we remain our core commitment to microfinance and to doing change in that world, it's pretty clear that our investor base is very interested in to see how they can do more good at home. For me, an important question then was philosophically and we have some donation base for pure investment based people here. At what point, at what dollar amount do you feel like something is just a pure investment even if you're getting a return or even if you're not getting a return versus a donation? What is the point at which this in your mind shifts what plate or what bucket of money or how your expectations are for what's going to happen with this relationship with this organization? And not surprisingly, our people who are on our site already felt that very small dollar amounts met that standard but the broader investing public and then small business owners in particularly had a very different number in mind. So the broader public looks at this kind of crossover point. All this data is going to be available by the way so I don't feel the need to be knocking this out and I've got a couple, probably 20 more pages of fun granular stuff because SoCAP is a very granular crowd. But basically, so the 50, we're looking at our minimum is trying to ask the question not just in how do we get money to the entrepreneurs which is crucially important but how do we engage the investors? Because one of the issues that we find over time is it's not just getting the money in the front, it's how do we keep them there? How do we keep their philosophy in the game that this isn't just an impulse purchase or a one-time thing which is great and we love that those things happen but how do we really create an engagement and a relationship that changes the way you think about money which is ultimately what our goal is. Changing the way people think about their economic power and it turns out right now that that's a slightly higher dollar amount for the broader public than it is to the people who've already kind of self-selected into our space. So on crowdfunding, when we ask small business owners and this slide is coming from a very small base, this is kind of a smell test slide and it's from existing businesses. It's not from groups that are looking to get seed funding. They already have between 200 and 100 employees so I will caveat the heck out of this. Those businesses, given the current definition of crowdfunding equity that we were able to give them, obviously did not jump at the opportunity with over 50% saying probably would not or definitely would not and frankly I think that's good because for a lot of these folks, equity and the process they're going to go through may not be the best way for them to proceed but what was interesting to me is who was interested and so the second slide is what kind of engagement in the crowdfunding model that they think would be useful for their business, whether it's to do an incentive-based offering for marketing purposes or a capital-based offering for balance sheet, there was a pretty interesting mix of different people. The rewards-based people were not the same people who were looking for equity-based and vice versa. Of the people who were actually saying, okay, I am interested in this and I don't expect anyone to read this slide but there's two things I want to point out. The businesses actually look very similar. Their revenues are similar, their number of employees are similar, I think the two striking differences to me of people who are interested in this space versus people who were not were, the first is that their average credit available, it's people who having a tough time getting money somewhere else and you can see that in their credit cost, it's 6% versus 4.7 in the US and the second thing that jumps out is while they're all doing the same amount of activity themselves in terms of philanthropy and giving and engaging the community and all that, their customers were twice as likely to care about that for the people who wanted to crowd fund is the people who don't and we had a tax preparer, so we did some qualitative follow-up on all of this and there was a tax preparer who said, look, my business isn't sexy or fun, it's not going to be a YouTube video about this kind of thing, I don't think I'm going to draw people this way and somebody who said, well, I can get 100 grand in line of credit without having to work hard, not very surprising, but I think it helps us focus on the groups that we most want to help, so that's a quick snapshot of how we're going to bring up my six minutes, but I wanted to provide a little context of what we're seeing in the broader space and then from my perspective, both Microplace as a broker-dealer, what I'm interested in is how does that legal construct help these other platforms and how can we use that and how can we bring PayPal to bear to create facilities that are going to make this business easier, so that's where we're going and we'll get more into an open conversation later. Yeah, can you hear me? Yeah. Thanks, I don't really have anything. Can you bring up indiegogo.com as the website? You got to do up there. Okay. All right. Kate can come up here and navigate away. Well, first, I would actually like to give Pramala a chance to talk about Kiva because I think Kiva's been one of the founding inspiration forces and why we have the crowdfunding industry at all. Do you want to talk for a couple of minutes? No, I've spoken a lot. No, this is a chance. I think the reason why we're having these panels is what Kiva's doing, we're in the 0% interest loan space, is markedly different from each one of you guys' space. I mean, you guys are doing reward-based project funding and while I think a lot of people have heard of indiegogo, a lot of people might not know exactly what you guys do, so let's use this time to really make sure that everyone comes away with, you know, crowdfunding is a term that catches a lot of things and I think there's a lot of distinct kind of differences here. All right, so I'll get going. Hi, everybody. I'm Dene Ringelman. I'm one of the founders of indiegogo. We're now the largest global crowdfunding platform in the world with tens of thousands of campaigns that have launched since our start in 2008 and we're in, I think, almost 200 countries and we're distributing millions of dollars every single week to entrepreneurs, artists, charities, causes, activists, inventors, pretty much you name it across the world. So it's pretty exciting to be up here because that's not at all where we started. We actually started back in 2008 before the word crowdfunding existed and really the story began probably back in 2002 or 2003 for me personally when I was working in finance and doing the, you know, financing by day and then working with filmmakers and theater producers by night trying to help them raise money the old-fashioned way and it's only now that I look back in hindsight that what I thought was what was just not working was me just failing over and over again helping people raise money the old-school way because what was happening was things like needing to have an extended network of rich people, something I didn't have, a trust fund, something I didn't have. Basically having contacts, access to money is what was being the driving force for independent creators to actually get their ideas off the ground. I actually had a very pivotal moment where I was helping a theater producer produce a concert reading of an Arthur Miller play which Arthur had given us permission to do which was in the post-September 11th kind of time to play about racial profiling which was a pretty hot topic. I created this opportunity for a bunch of really cool actors to come in and produce and showcase the play and then we filled the room with audience and I got some investors there hoping that they would see the audience response and how amazing this play was and the investors at that point would be inspired and cut the check and like produce the whole shebang and everybody would be happy and we got everybody in there the audience loved it, the actors loved it and the investors said oh that's amazing but we're not cutting the check because we have these other objectives and so it was in that moment where I saw an entire room full of people who wanted something to happen but they did not have the power to actually make it happen which to me was like what the hell like we live in this technology world Facebook has started, Twitter's starting like what's going on here so that's what compelled to start something to truly democratize fundraising and that has been the mission since the beginning and it's there that I met my co-founders who came from technology backgrounds and they said to me if you really want to democratize anything you have to use the most meritocratic tool out there and it's called the Internet and so that's what we did we started in 2008 with the mission to democratize fundraising and that's pretty much the probably the only thing that has stayed the same since the beginning as I'm speaking as an entrepreneur to entrepreneurs and I don't know if it along the way but at the time what we were really compelled by and inspired by were stories like Kiva who was doing amazing work to take technology and connect people to the tools where they could actually vote with their dollar and make a real impact and not have to necessarily be rich and a patron or an angel investor or whatever because we knew that's a very limited people in this world but how can we bring that experience of funding something, making something back into the hands of the people to bring ideas to life how can we do that for the price of a cup of coffee or the price of a meal so we launched Indiegogo Amazon Style we picked a vertical to stay to kind of own it and learn and we picked film to start and at the time actually my original idea was more about an SEC investment play type thing but knowing that there was the SEC and the idea laws of 1933 and 1934 which we're going to talk about probably more I knew it was pretty illegal to offer equity online and so we probably spent about three weeks doing a little bit of research trying to figure out how to navigate all these Reg D rules and is there a way we could bring technology to Reg D exemptions and all this kind of stuff and we realized that we were three new B entrepreneurs with no track record without money so we didn't have the money to pay lawyers to help us go do this and we were like let's not do that because that's kind of stupid and let's figure out another model that was going to work and let's validate the dynamics of fundraising online using social media and tools like that to see if this is really something and then we'll deal with the equity thing later and that's what we did so we came up with this perks model because we thought there has to be some reason why people would want to contribute and now that's kind of become a pillar of the kind of reward based crowdfunding industry and there's now hundreds of competitors across the world so the way Indiegogo works is Indiegogo is an open platform where anybody can create a campaign to raise money for absolutely anything anywhere in the world at any time in fact one of the most fun kind of immediate campaigns that popped up this morning was a campaign to raise money to save Big Bird PBS given our lovely candidates comment last night in the debate about him wanting to cut PBS funding anyways but that was a nice kind of response letting the world kind of vote with their dollar let's go save PBS right now if that's what's going to happen and what it is is anybody can create that campaign where they just pitch their idea share offer a set of funding targets a timeline for when they want to raise some money by they don't need to raise 100% of their funds all at once but they can raise enough money to get them to the next stage of their project or development stage and then offer amazing cool perks and that can be anything from a thank you note or a Twitter shout out for a buck to maybe the actual product that you're trying to raise money to go build we actually have a great example of this this campaign that just launched to raise money for the Tesla Museum who many people know that Nikola Tesla was like a pretty smart guy but a lot of people don't know that he was way smarter than we probably recognize him for and he's very involved in kind of electricity and science and all that kind of stuff and so one guy was super passionate about celebrating him and kind of giving him the recognition that he deserves so he took it upon himself to create a campaign to raise money to build a museum in his memory and they've raised I think almost one and a half million dollars in just a couple weeks because there's clearly a lot of people out there who believe the same thing so that's really the power of crowdfunding is giving people the opportunity to raise money for whatever they're passionate about as well as giving people the opportunity to fund whatever they're passionate about and if you just create an ecosystem and technology that makes it super simple for somebody to start raising money and somebody to actually fund you actually unlock and unleash a lot of creativity and a lot of action as a result so we can talk more about the benefits of crowdfunding we actually talk about money as just being one of the benefits there's far more benefits that we found based on the five years of data that we've accumulated as well as the reasons that people find we talk about the five P's of motivations for why people find anything anywhere in the world and actually only one of the reasons is profit or ROI based there's four other reasons people find and we can go into that more but don't want to monopolize so that's it Thanks Jeremy you want to talk about Razer Sure, I have a few slides and a demo and a video so maybe I can help you with those I'm Jeremy from Razoo by the way I'm a builder's Leslie I'm not Leslie I'm Jeremy but we're both from the same country with the same funny accent so could I have my slides there we go so I think it's a really good panel that we've assembled here today Primal because I think we do provide a variety of different perspectives a variety of different slices on crowdfunding and different ways of looking at the problem I think what makes Razoo differentiated from some of the other companies that are presenting today is we're really focused on the donor primarily as the heart of the experience a number of other companies in the space focus on the fundraiser and obviously we have tools for the fundraiser and we believe the fundraiser is hugely important but at the heart of our mission is really to make philanthropy individual philanthropy part of everyday life something that people do everyday and kind of make a particular commitment to do so I'm going to start with kind of a bold statement which is that I want to change the world I think everyone wants to change the world and I think most people who aren't super wealthy who aren't very motivated like probably everyone in this room feels kind of overwhelmed by the size of the challenge they feel a lot of apathy they feel that the problems in the world are too big for them to impact so there's a huge amount of inaction that happens in the world so really each of us of individuals we can change the world even if it's in a small way and really what Razoo is trying to do is allow anyone to change the world so effect that change based on your values based on the issues that you care about to actually impact change so that's kind of how fundamentally we look at this problem and in doing that we kind of see we need to enable each individual to do a number of different things first of all we need to enable everyone to identify themselves to say this is who I am, this is what I care about these are my values, these are the things I think are wrong in the world, these are the things that I would change if I was able to and once you've allowed people to self-identify you want to allow them to find like-minded people people who think in a similar way people who are willing to coordinate with you to make things happen and then with that energy to create movements, to discover movements and make things happen online and to contribute towards those movements and I think as one of the other presenters just mentioned it's not just money, you can contribute money, you can contribute time and in a very connected world that we live in you can contribute your influence you can influence your network of supporters and then of course you need tools to spread the word, a big problem that exists is really nothing unique to charitable giving it's a problem of turning people who are somewhat timid polite people into really aggressive marketers who can communicate over and over again and push and follow up and ask and keep going and keep the energy going over time to reach their objectives and then lastly and most importantly we need to create a feedback loop we need to show people the impact that they had and I think this is something that most non-profits in the world actually do very badly, they take your money they give you a receipt for that money but they view that somehow as the end of the transaction and actually what's really important is to show each of those individuals the individual impact they're having so they feel good that they have changed the world even if it isn't that small way so I'm going to just give you a few very thin slices of everything that's going on at Razoo there's a huge number of things going on at Razoo I think what's particularly relevant now at this time of year is the kind of slew of giving days that we have so Razoo's been very successful with community giving days and we work with an individual company or a community foundation or a kind of governmental organization in a particular region to have a 24-hour period of giving online where we raise a large amount of capital for a range of non-profits typically so November's always our biggest season we have I think 12 large giving days coming up in November these are just nine of them that are happening here I think on one day we have three different giving days that really generate a huge amount of donation volume at Razoo and a huge amount of interest so if I could just switch over to this computer at the front here and I will show you what's kind of what a giving day looks like just very very briefly and I invite all of you to go to razoo.com and check out our site this one is actually a departure for Razoo even this is the first time that we have done a giving day for a specific non-profit with a specific brand so this is a giving day we are doing on October 16 it's with Yum brands and for those of you that aren't fully with Yum they are the company that owns Taco Bell Pizza Hut and one other I always have to admit when I speak to them that I don't eat this is they've made a commitment year on year though to address world hunger so we've partnered with them to do this 24 hour period of giving on October 16 and you kind of see some of the elements of how we operate a giving day at Razoo I mean one thing you'll see here I think that's really important is actually tying donation amounts to real concrete impact that those donation amounts will have on the world so 10 dollars buys a meal for 40 children 25 dollars fills a child in school for six months and then some simple stats here that show you the kind of scale of the issue in reality in the world let me show you just one more I'll just kind of talk a bit more through the mechanics whoops that was the wrong one okay so this is another one this one is on November 15 this is give min for the state of Minnesota so this is actually the most successful giving day we've ever done this is now going to be the fourth year we've done it one year we raised 15.5 million dollars in 24 hours the way our site works is really to look at a giving event in three phases there's a pre-event phase where we're trying to build momentum for the event and in that kind of mode the giving day page allows you as a donor to add the events to your calendar to learn more about the event as a non-profit to sign up to participate in the event also to access a big array of videos and help material best practice guides and all those kind of resources that they need to really make sure that their participation in the giving day is a huge success and then on midnight on the day of the giving day the website flips into the kind of live mode and we have a whole bunch of kind of gaming mechanics on the site that really help to make sure that we have leaderboards and they actually foster a lot of healthy competition between participating non-profits to get them to compete for who can be in the top five we also have the notion of golden tickets which are kind of rewards linked to the thousands donation or the donation that's closest to 4pm that also encourage people to compete and encourage donation volume and a number of other things that don't have enough time to go through the page flips back into the kind of post donation, sorry, post giving event mode and we kind of have a summary of the event we send out a survey to all the participants to see how they thought about the event. So giving days have been a huge success with Razoo off over the past few years and we're looking forward to a really successful season coming up. If I could go back to the slide deck I just wanted to finish up with something a bit more, hopefully a bit more fun to talk about one of the other big problems that I think we have generally in the world and with these problems if I could have the Razoo slide deck back. So one of the big challenges that we face is this issue of the size of the challenge just seems so overwhelming and that causes apathy and inaction. So I only recently discovered this quote is misattributed to Stalin but I think it gets the idea across one death is a tragedy and a million death is realistic. It's very hard for the human brain to get their head around the scale of big problems in the world. The number of people living with HIV in Sub-Saharan Africa, the number of people who are living below the poverty line in the United States, these are all huge numbers. It's very hard to make them real. Give you one kind of plug, self promotion to start with. We just passed $100 million raised. $100 million is a huge amount of money. I have no idea what that looks like. So I found this nice chart online that $100 million, what would that actually look like stacked out on a football field? So that's what $100 million looks like. But this is a big problem, not just for Razoo. We really need to make it possible for people to see the impact and see the scale of these issues and these problems. So we've got to make it compelling, we've got to grab attention, we've got to keep attention, we've got to make it real, connect with real people, real impacts, real emotional connections, we've got to make people immediately able to grasp what we're saying. And we've got to make it exciting in the context of driving drama around these giving events. So what I wanted to finish with, I've got a two-minute video, so if we could switch to the video that I brought along. You're going to see Razoo over the course of 2013. We can start this video, I can kind of talk over it. You're going to see us more and more look at visualization giving on our website. So this is just the first taste of what you're going to see in 2013. This is a video of the Give Min event in Minnesota we did last year, where we raised I think $14.5 million in last year's one. And each of the dots you see on the map there is a donation. So the bigger those dots are, and the more red they are, the bigger the donation. So if it's a really big dot, it's a $50,000 or above donation. And you can see those kind of flooding in over the course of that giving event. You can kind of see them distributed obviously over the whole state. I don't know how many people here know the layout of Minnesota, but obviously where that action is happening is Minneapolis and Paul. On the left there of the top bar chart you can see the donation volume as it kind of ebbs and flows during the day. But also on the bottom left there you can see the number of comments. So this is kind of the movement. This is the actual social spread of the story around that giving event happening in real time. So we've compressed the whole 24 hours into two minutes, and you can see the clock on the top left. You may also notice that the background is changing color. It's to represent the shift from night to day to back again. And my visualization engineer told me that he made sure that the sunrise and sunset time was exactly right for Minnesota on that day. I think that's the kind of thing that visualization engineer's care about. But I think it's one of many ways that we're planning to kind of really show the both the excitement of the giving day happening and make $14.5 million actually seem like a real thing that happens. And also make people connect with the impact of the fund raising that's going on. That's what I have for you. Thanks Jimmy. Alright. I think the $50,000 one is probably Prince for someone I'm not sure. Mike do you want to talk about Wefunder? Absolutely. So I'm going to walk you guys through a little bit of a demo of what we're building. My name is Mike Norman. I'm one of the co-founders of Wefunder. It's been a great conference for me so far. I think there's been a lot of really compelling talk about the JOBS Act in crowd investing. And we're going to get into a little bit of the specifics of why we think that is such a compelling innovation for social entrepreneurs in particular. So we helped actually write the crowdfunding part of the JOBS Act which enables crowd investing. We were at the White House when the president signed it into law. And I'm just so excited about what this is going to mean for social entrepreneurs. I've been a social entrepreneur. I am a social entrepreneur. My last venture was the first investment that the foundation made as a PRI out of its communities program. So I've been through the process of financing and this is why we feel like we have some unique insight into how this is going to apply so well for social enterprises. Hold on one second. So there's no doubt that crowd investing is really going to be an amazing kind of flood of capital or access to capital for social enterprises. And we would propose that there's another piece of this which is really going to be even more compelling and that's the relationships that the crowd are going to be able to develop with the entrepreneurs that they're financing. So when you talk to angel investors and folks that have been at this for a while there's obviously a profit motivation involved in why they're investing in companies but the returns for that asset class as a whole are not all that great. And when you have an honest conversation with most angel investors, they're really there to live vicariously through those entrepreneurs, to be able to help them out and see the companies grow and the entrepreneurs themselves grow as much as they're there to put money in as much in the kind of high growth startup space that we see and even more so in the social enterprise finance space. And so I think the question is what are social entrepreneurs going to be able to do with a huge number of smaller-dollar investors that are coming in to support their enterprises? Right? I mean, if you're able to give an investor the experience of really helping you execute the change that you're making in the world and feel a part of that journey and really get that potential component that we've been talking about a little bit on the panel so far, those investors are going to be more than happy to come back and help you with product marketing, with product feedback, with, you know, recruiting if you have a position that you need to fill and to be able to construct a process which efficiently takes them through all that is going to be immensely powerful. And that's really why we've gotten into this as a founding team. So, you know, the relationship that investors has to start far before you open your round, as most of you here know already. And what we started by doing is allowing entrepreneurs to construct a page that has basically all the information pertaining to their venture, right? So as soon as you launch your company, whatever stage that you're in, it's likely at some point in time that you're going to need to raise capital. And you're here on WeFund are able to kind of put together a profile that has the specifics about your team, kind of why what you're doing is important, how the product works, so on and so forth, your business model, the market, where you can send investors to say, look, you know, we're not raising a round right now, but once we do you can continue to get updates about our progress and the milestones that we're hitting. You can ask questions that we can respond to in a more scalable manner than doing it kind of one on one. And once the entrepreneur actually decides to open their round and start fundraising, all those investors are in one place and much easier to close and bring into the round as actual contributors of money. So one of the fascinating things that we've seen with Indiegogo and a lot of the other folks that we've spoken about up here and that maps perfectly to the investment space is the fact that, you know, as entrepreneurs running companies, so many operational challenges that we have, we don't have time to have a conversation or three or four conversations with every individual that might be interested in putting in $500 or $1,000, right? It just doesn't map with the scarcity of time that you have in a day. If you're able to drive all those individuals and set the expectation that for that dollar value amount, follow the profile, you know, stay up to date on what it is that we're doing, you can wrap all those folks in and around very quickly and easily without having to have it be too much of a time suck. So this is what kind of a profile looks like once you actually open your round as an entrepreneur to raise money as if SoCAP were raising money on the site. Investors can imply to invest very quickly and easily when the connection works quickly. And then they'll basically be driven to a page where they can see the specific convertible note that we provide, we give free access to our legal documents for any entrepreneurs that use our system. They can sign the document right there digitally through the site and then through an ACH transaction very quickly and easily transfer the money. So you as an entrepreneur, all you have to do basically is say, okay, here are all the folks that have applied to invest and I want these 40 out of 50 or what have you and then the money shows up in your account right away. So from a time efficiency standpoint this is going to be a game changer for social entrepreneurs. It looks like some of the slides got changed here. Hold on. The one I really need is not here. Great. So for us, that kind of investment process is really where the process and the excitement about crowdfunding begins, not where it ends. We were talking about earlier in terms of the experience of being able to be involved and live vicariously through an entrepreneur. This is where you really mediate that process. So if I'm an entrepreneur and I've got 500 different investors and in this example, skip to renew if I have a big product mark launch which is going out on Friday. All of those investors are highly aligned. They've put money up to invest in my company. They want to see it successful because there is an upside motivation for them. So to be able to put out a call to action to say, look, we're launching on Friday. Here's a quick and easy way for you to retweet what it is that we're doing and press the retweet button and boom in two seconds, your 500 investors have helped you kind of become a trending topic on Twitter. Or if this was working if you have kind of an A B test that you want to run with your investor community and you want to see, okay, we've got two different sets of designs or stitching designs that we're running for our company. Which one do you like? You know, you vote and you can see which option your investor community is going to support the most. You know, we're looking to expand into a different market, which do you think is the most compelling? Choose one and you can see where your investor community shakes out. Now, what becomes even more compelling about this is because all of these actions and support actions are being conducted through the site, we're actually able to track in a quantitative way which investors are providing most value and are spending more time to support the companies that they've invested in. And you're able to say, okay, look, you know, Joel happens to have given this much help with fundraising and marketing and so on and so forth. And so we can highlight him in front of the rest of the community of investors to really say, this is the prototype of what a good investor looks like for us. And he gets that kind of status benefit that we've seen been so successful across the social web in promoting different types of actions. And there's no more applicable space where that works when you have a community of folks that are aligned in the outcome that they're trying to see and an interest in a similar issue, which is by definition a community of investors. So, you know, we've got a bunch of folks that are actually here at the conference exhibiting up on WeFunder right now. If you go to socent.wefunder.com you'll be able to check out FrogTech, Skip to Renew, Ballersbridge, Inter Scola, Inventure, Project Repap, the IQ Collective, all these folks that are out there building social enterprises that are really compelling, and you'll know how I have a quick and easy way to follow their profiles stay up to date, and once they open up a round a nice easy way to make an investment. So, that's a quick overview of what we're doing. More than happy to answer more specific questions about the Crowdfund Act itself in the Q&A. Thank you. Thanks, Mike. All right, so it'd be ironic if we were at a crowdfunding panel and we actually didn't turn it as soon as possible over to all of us in the room. And I would love to, you know, I have some questions, but let's get some questions from the audience. What are some reactions to what you've seen? Do these models feel distinct enough? I certainly think so, but I have this inside our baseball view on all of this, so I geek out on it. I'm wondering what's the reaction in the audience? Anyone have any questions? Bjorn, do you see him? Hi, Alex Hoffman. I just, I wanted to, you know, you sort of tease with the five P's and you gave us profit but not the other four. So can we get those? The five P's of, did you say the five P's of crowdsourcing? Yeah. So, well, I'll start with, on Indiegogo, because we support everybody in anything anywhere, we have everybody from entrepreneurs trying to, you know, raise money to develop their prototype to causes and charities raising money for a community effort, a community garden, healthcare, whatever. We had our first baby crowd funded on Indiegogo last year. They were just born a month ago. And then all the way to creative artists, filmmakers, designers, photographers. So I'll try to get their next project funded. So what we see is we see a wide spectrum of people raising money and for a wide spectrum of funders and the reasons people fund. So the reasons people fund are five fold, the five P's. The first is passion. I mean you wake up in the morning wanting to be a good person. We had a campaign that was raising money for a man by the name of Pastor Marion, who's known as the Shinra of the Congo. He, for the last decade, has been saving the lives of people from execution in that war zone. And last year his life came under attack. His kidney started to fail. So the two CNN reporters who had been following his story took it upon themselves to save his life and they created a crowdfunding campaign on Indiegogo and raised $50,000 to pay for him to fly to South Africa and get a liver for a kidney transplant. Why? Because they were passionate about doing good and just doing the right thing. And that's why the funder showed up as well. The second reason people fund is they want the perk. So we have a lot of, we have this one guy out of England who had developed this 3D printer prototype, a very streamlined version. And they, he just didn't have the money to actually manufacture it and get a few pieces of the marketplace. So he wanted Indiegogo to raise $160,000 to actually get a whole bunch of units into the market and he did it by actually pre-offering the actual 3D printer. And so the people who were funding him were people who wanted that 3D printer to be produced. So that's a huge motivation for people to fund as they want the actual perk in the end. The third reason that people fund is participation. So wanting to be part of something bigger than themselves and part of the greater good. I think a great example I funded this film called Salam Dunk which was a documentary about the positive impact basketball was making in the lives of girls in Iraq. Especially during this time. And as a young girl who grew up playing basketball, whose confidence was completely determined by that, I wanted to give back and kind of live and support and promote this whole worldwide effort to inspire young girls to play basketball. Well, I have a day job. It's called running Indiegogo. I'm quite busy. But I would love to commit more time and be part of this greater movement. So by me funding this documentary, I'm participating in a greater movement beyond just what I can do day to day. And then the fourth reason people fund and this is kind of a new one we discovered is pride. So it's very intentional for us to from the beginning we always showcased who all the funders were. Because people often like to be recognized or known that they were part of creating this endeavor. We've also started to see things like recently, maybe some of you guys have heard there was a woman who was bullied on the bus. She was a bus monitor. Her name was Karen Klein. A video was made. It went out on YouTube and a guy in Canada was so disturbed by it. He took it upon himself to raise money to send her on vacation and his goal was $5,000 but they ended up going to $700,000. So she's definitely gone on vacation and I just learned she bought a new rug and she's going to be donating a lot of the money she raised back to a foundation to fight bullying across America. But what we started to see, we started seeing funders talk about how they were the fourth person or the 24th out of 30,000. And so it's this concept of letting people be recognized for discovering and being the early ones and being known for that. So it allows them to kind of tap into the pride of being part of something bigger. And another way that plays out is around seeing the actual business grow. So in other examples, we had a campaign I love this example because our customer was actually up on stage with Obama when he signed the Jobs Act because a lot of the case studies that came out of Indiegogo were the stories that the senators discussed to make a case for passing the Jobs Act. And this was a young woman who had started a bakery who a gluten free because she was silly and she was sick and tired of not finding good stuff. And she was really passionate about starting her own business and growing it and hiring people and giving back to her local community in upstate New York. And she had gotten her start by getting a $10,000 loan from the bank and she was selling her macarons out of the back of her garage I think. And then she had the opportunity to get into a regional grocery store chain. And the only problem is she needed to redo her packaging to do it. And that was going to cost $15,000. And as a small business and an early stage entrepreneur we don't have just $15,000 in cash sitting on the sidelines to deploy. Every dollar we make goes back into the business. And so she went back to the bank and said, can I get another loan? This was nine months after her first loan and they said, ha-ha, sorry you're much too young. The risk model doesn't work. Like there's no way we can make the loan from a risk perspective work. So sorry, just go back to selling macarons out of your garage and come back to that. She decided to do an Indiegogo campaign. She raised the $15,000. She pre-sold macarons, built her customer base even further. Again, because the funders are not just friends and family but potential customers, fans, friends of friends, friends of customers, you name it in the socially connected world it's everybody. And she ended up raising the money within a month or a few months she was in the regional grocery store. I was in New York City last week and I walked into some tiny deli in Soho and there it is, her packaging is there. I'm sitting there as someone who is gluten sensitive and funded it because I wanted good macarons in the market. I was super proud. There was a slew of cookies and candy and all this kind of stuff but I knew Emmys Organics because I knew her story and I funded her back when she was nobody and I bought three packages and I went on and I told her story and she was talking to the deli story owner, do you know who this is and he's like whatever can I film you, he's like no. I just wanted to get, because I knew the story and that's the pride that historically that feeling was always reserved for the rich, for an angel investor, the patrons. Now I'm someone who can feel that with 10 bucks or 25 bucks. So passion, perks, participation in pride and then the fifth P is profit. A return on investment and we've always been supportive of the Jobs Act. We're really excited about it. We're going to see what the regulation pans out and we're giving as much guidance as we can to the SEC about how we've managed handling all the risks that they're saying might be the things that keep it from actually happening well like fraud and all that stuff which we've handled since the beginning. Dynamic play, the first four are dynamically in action on the site. People aren't just funding for one of those reasons but based on our experience over the last five years it's a pretty dynamic experience as a funder and so we don't see that going away. Sure. Go out and buy Emmy's Organics. She's amazing. Really yummy. Hi, Bradley Pirrick from Two Thirds Water in Vancouver. A lot of this conversation centers around projects in the US and I'm wondering if you can comment on legal and other complications working internationally. Was that a question for me? I can start. Indiegogo has been global since day one. We built the system very intentionally to be global because our mission was to democratize fundraising across the world so that means everything from building a payment system that works globally to building a customer happiness team that can support people globally to building a platform that is user friendly across the world and so granted I think we've ran into less legal regulatory stuff because we haven't had the investment component layered in and that's something that's going to be a lot of our jobs to figure out if we do decide to turn on the equity component but it's also why Indiegogo, I know specifically for us we built an open platform and that actually is something that makes this different than I think almost every other company in the world. We built an infrastructure that can support that anytime, anywhere system as well as built an infrastructure that's very data driven that allows campaigns to gain extra exposure and get promotions and we built an infrastructure that's very data driven that allows campaigns to gain extra exposure and get promotion based on the factors that should matter in fundraising success which to us is how hard you're willing to work and how much your audience cares so what I mean by that is a lot of people ask us, hey will you feature my campaign on the homepage, will you pitch me can I send you cupcakes I promise I'll be nice, you know whatever and I always return to that and say look I love cupcakes especially gluten free ones but no need to send us cupcakes it's actually not in our power it's completely in your power to get the amplification throughout our global system of reaching global funders across the world and the way we do that is through this thing called the gogo factor which is a very kind of like google page rank algorithm where every campaign has a gogo factor that measures the activity of the campaign owner and how active they are in updating their funders as well as the responsiveness of their community and the high gogo factors that get higher placement on any gogo get better discoverability, get promotion get in the press, all this kind of stuff so it's truly a meritocracy and it's truly democratic the last thing we wanted to do was build another gate keeping system online where we pick and choose who gets to raise money because we really honestly feel that the future is when everyone is funding everything our job is really to bring people to things that are most relevant and they're most passionate about and there should be no barriers there should be no decision makers on who should be, should have the right I mean imagine if we started the internet and somebody was deciding which people got to create webpages and which people didn't makes no sense and that's why the internet is so amazing it's truly open and democratic we do face regulation though with the challenge, I mean I think that's the issue when you are going to start and that was a tradeoff from earlier on making SEC registered limits us we can't take certain investors with certain tax treaties I mean it's nice with Canada because they're provincial versus the national government so each of the provinces are looking at the crowdfunding legislation Brazil is looking at our jobs legislation as it's evolving to see if that's a model for them because there's a very active community that's kind of evolving there and in the UK it's already the equity part it's much more easy to do than it is here and the regulatory structure is different so I think the good news is that we're hopefully approaching a more globalized legal construct, I get to be like the killjoy though in a lot of the stuff because we're trying to do the plumbing we're trying to do all the legal stuff and you guys get to be the iPhone and I get to be AT&T and nobody likes AT&T but we got to build the darn cell towers so that's where we're trying to work on from the regulatory structure through the FINRA I keep saying ASD to come up with a construct that does meet the kind of more the regulatory standards that are going to come through so it's going to be really interesting and I know we're certainly seeing that Mike's seeing it too one of the things that's important to know about the crowdfund act itself is that you have to be a US corporation in order to take advantage of it so the way that securities laws work also you are governed by the law securities laws govern investors so if you're a US corporation and you want to take investors from all across the world outside of the United States that's really easy to do the difficult thing is being an investor in the United States and choosing where you're going to make investments I would say this whole area I would just add to what's being said I mean the whole area is a huge honestly a huge source of frustration for many of us in this industry because you know the internet as has been said is a kind of truly a meritocracy and truly a global platform and I think when you add the social layer on top of that even more so but the financial industry and the way in which payments and remittances work is sort of stuck in some kind of glue somewhere stuck in the 19th century or at least in the 20th century and it's I think to make a truly global platform where anyone can donate to anything and anyone can raise money and get paid really actually requires some pretty substantial changes in the plumbing to your point in terms of rebuilding how remittances happen and how donations are processed we've been pretty excited because I think this starting to be a huge new crop of payment providers companies like Stripe and WePay and businesses like this that really are trying to say let's do payments in the internet way in the internet age and make that very open and available to all so we're going to be partnering with some of those companies soon to make that a broader base I think what's interesting is if you go back to 2006 there's a company prosper.com it's still going but there were the first mover in the P2P lending space and it's a simple thesis if borrowers and lenders can connect directly and you disintermediate the bank borrowers should be able to borrow at a lower interest rate and lenders should be able to earn higher interest rate and with all that brick and mortar cost in the middle of a bank basically the spread can be shared and it's a great idea eBay for micro loans or eBay for loans and they use kind of your FICO score and your credit score and they got going and they aggressively interpreted the broker dealer laws and basically a few years later the SEC came and gave them a cease and desist letter and they had to shut down their business they were often thriving they had to then stop when you stop your business in the middle a lot of the loans that are outstanding people probably wonder why do I have to pay back and then Lending Club had almost a second mover advantage where they took a lot longer to actually get compliant first and then launch and now Lending Club actually has a lot more loan volume per month than prosper so it's a really interesting thing I view you know you look at Indiegogo versus WeFundr you know some people it seems in the space are trying to establish a brand and then pivot and become bigger so we started with collectibles and beanie babies and then went into automobiles and then other people are starting with this is what we do this is a focused website on this and we're going to run hard when the regulation allows us and I think it's going to be really interesting to see what the next decade holds and how it all shakes out so let me ask you guys this because we have to wrap up if you had to in a phrase describe kind of the way you feel about the next decade in crowdfunding what would you say characterizes the next 10 years it's so early I feel like we're high school bands on a stage right now and in the next 100 years I don't know if there's going to be an 800 pound gorilla or if it's going to be for each student loans there's going to be a specific crowdfunding website how do you think it will all play out in a couple of sentences I think that crowdfunding is an apple newton right now and I hope it's an iPhone and then and I would really hope that crowdfunding has the capacity to bring back local wealth our financial system is designed to be a big pipe moving a lot very fast and I think crowdfunding can move a little in a lot of small directions and create resilience in communities and that's what I hope it does I mean yes the next 10 years are going to be incredible there's going to be so much innovation and change and I think that the experience of funding will be more almost like the experience of you know buying a cup of coffee like I talked about and so what is happening already from the audience is that especially this audience understands people are starting to care how they're spending their dollar and they're more mindful of what's happening what's behind that purchase how did that product come to be and I think it's actually the social entrepreneurship space and the social innovation space that is going to help lead this charge and lead into the rest of the other industries which is why we're investing heavily into who's sitting right here who used to run the full circle fund to help kind of lead the way because ultimately the experience of funding will be it will be almost similar to buying something because it's the thought of just buying something without thinking about where it comes from is going to be so archaic it's almost like you'd be embarrassed to admit that you're still doing that or something like that and the systems will be so efficient that people will be able to fund anything they want so if there's no more excuses no more complaining like movies suck or my local dry cleaners doesn't give me what I want or you'll have the ability to actually fund it to make it happen voting Yelp call it that it's a good job of making it easy for that to happen Jeremy? I guess I think democratization is hopefully what happens I think right now you've got these large nonprofits that they vary a great deal in terms of some of them at one extreme end of the spectrum are very protective of their donors and kind of building a relationship with their donors and others I think have a more open view of building a bigger pie for all and are more willing to share that and I think the story that you told is an interesting story because I think in the charitable giving space there is an opportunity to use a kind of technical term to disintermediate the nonprofit because people don't really give to a nonprofit we use the word to nonprofit to their outcome so if you can use technology to connect donors more directly to the tangible impact they're having in the world and create that kind of loop then I think the whole balance shift because then you say well the nonprofit what does that exist to do it exists to spend the money and it has a different role within this bigger kind of giving ecosystem so I think that democratization and direct visibility of the impact is really what's going to happen so I would agree with that 100% there's a book called the move on effect written by a Rutgers professor I believe which talks about how that's already starting to disrupt the way that we donate and the expectations that we have people don't want to give unrestricted funds anymore right they want to be able to see what they're buying in terms of impact and I think that that kind of runs across all the different ways that folks can engage with crowdfunding I do think that there are very subtle but extremely important differences in psychological expectation that come along with donating is buying something versus making an investment versus doing project financing where you get a perk and that the platforms that are able to really narrow down on what those psychological motivations are and shape them appropriately will be the ones that are able to expand and kind of have a vertical vertical success right the blue angels so that's what I would say I would say that you know we're going to find platforms that specialize in kind of project financing folks that are going to do donations really well you know debt and equity there's a question of whether or not the psychological motivations are similar there but that I think it's hard to do all of those things and do them all well thanks so much you know with the blue angels overhead which is amazing because also it's usually time with the bluegrass festival in San Francisco and so you have like these like war lovin you know I love power people next to you like the biggest hippies in Golda Gate Park and it's a great weekend and you know I think the cool thing about our platforms is no matter who you are you can find something you're passionate about and you can help put it into motion and give it life and see all the other people who care about the thing you care about and that's something that can give our lives significance so please join me in thanking our panelists for being the Shreveggen Entrepreneurs Thank you