Crowdfunding for your social enterprise

 

Time: Wedensday 22. March 2017, 3-5 pm
Place: KPH Projects, Enghavevej 80-82, 3. floor in Copenhagen
Tema: Crowdfunding for your social enterprise with Michael Eis from the crowdfundingplatform booomerang.dk 

 

Social Entrepreneurs in Denmark gave an event about Crowdfunding with Michael Eis fromthe crowdfundingplatform booomerang.dk Wedensday 22. March 2017 in Copenhagen.
There were 30 participants

 

Here is a short resume of the event by Thomas Bo Christensen. 

Crowdfunding for your social enterprise 22 march 2017

 

There is 4 types crowdfunding in Denmark, donation, reward, credit and equity.


Donation:
You have to get admission from indsamlingsnævnet. Cost 1.000 kr. Have to get revisor. Ca. 5-6 mio funded a year.


Reward:

Geografi important, get on a platform there are the right place. Germany = germany based crowdfund. Mostly don’t know about the local crowdfund platforms. We do have Booomerang in denmark.


Kickstarter. Danish Crowdfunding has been looking at 13x danish projects. The founder did only not know 7%. The rest from your crowd. It cost 5-22% to be a part of it. It’s about your near network. You have to get at least 30-40% tru the enar network. Kickstarter are getting 3-4 mia USD/ year. Got less last year.


Reward based crowdfunding are under Købeloven = ehandel, look at it like a webshop. They can ask to get the money back, if they don’t like it. There are a risici for, that you don’t have the money, because of the funder don’t want to buy your product.


Problem: The 14 day you have to recall you founding, are starting when you as founder have the product. It’s a big problem, because you as entrepreneur use the money to make the product, and then have problem on that to give the money back.


If you put money at a american product, you risc to lose the money. The biggest scam was a cooling bag - he got millions. He had a goal at 50.000 USD and 200 bags, and he got funded to 4000 bags. They haven't got the bag after 3 years.


In denmark: It's mostly event-based, not products. Get name on the chair, get tickets to a concert or… normal not products. Mate bike tru indiegogo have got 25 mio USD to bikes. Remember you have to pay moms 25% in denmark.


Search on skat.dk - there are a page there about crowdfunding. You have to pay tax on the money you get. And have a CVR-number. They look at personal or hobby based. You can take your cost price off, and pay tax on the rest. The netto price. As NGO, it goes like a normal sale and a normal business.


As it is now, you have to tell skat, what you have got. Later you have to do it automatic.


Who?

Music and theatre. Strong near network. And they have low goals. The 60% don’t know anything about you or your cause. You have to sell your idea and your platform. Cold canvas. They snapchat, write and everything. Have a strategy on sales. If you don’t have a great strategy, you’ll get nothing. Remember it’s your project.

Have a plan for facebook, tv, and everything. It’s about selling. If you can’t sell. You need one to do it.


Who? What? When? Roles. Tell who there does what, get people on your team with competences you need. Talk with people there have done it. Get someone on your team, there can sell. You have to make trust.

Boomerang look at 5 things.  Crowd, budget, reward, video, team. Boomerang don’t desire if you project is good. The crowd does = wisdom of the crowd.


What is the most important you got if you're crowding get succes? In the beginning it was money.

  • Now it's validating of my project. Sony have just done a crowdfunding to test design.  

  • Marketing platform. There are a hype on crowdfunding. You can use it active. It’s the cheapest way to get money.

  • A tool to break up with the traditional production platforms. If you make a book, you’ll get 5% through normal channels. Now you can put your book out in the crowd. And get most out of it as a writer. And you keep your right to what your write.

  • You grow your network. Your crowd. Making loyalitet. Getting ownership. And people often give you more than money. On Boomerang you can be crowdsourcer, give something more than money. A couch to sleep at, a car to drive in, donate time, donate knowledge, lower the prices.

Reward based crowdfunding is all or nothing. If you don’t get the money you ask for, you get nothing. If you get money, Booomerang get 5% and you get the rest.  


How to set the price?

Look at your near network. What can I get from them? What do need? Make deals with your near network, about when they put their donations. People like more to donate, if they see someone donate to the project. Do I think the other 60% are going to pay that?


Time up to launch

Success crowdfunding starts 1-3 months before the launch. Facebook, twitter, youtube - making content, talking with influential people. The 60% rest are going to search on google.


0 - ⅓ time: friends fool and family 40%

Make deals with them about when they pay


⅓ - ⅔ Death valley

Look at what there works, change your strategy. Do what they're works. Make events. If you do mobile pay, you have to put the money on the platform. You can’t pay to the platform direct by mobilepay. Be active. And use the social medias. More than 90% of traffic, there goes to the platform are coming from social medias.


⅔ - finish.

Most money here. And most the last week. Give extra good deals?

Communication

Some platforms provide with tools to communicate with the crowd. At booomerang you’ll be able to donate time and not only money.

What does people pay?

382kr (?). From 0,50 dkk to 40.000 dkk.


Crowdfunding coaching

Danish Crowdfunding have 8 professional coaches connected there can help you. And you have to pay for their time.  


Credit based crowdfunding

You get money from the crowd and not from the bank. There are 7 platforms. Two with success: Lendino and flex funding. It’s a platform there have a high growth rate. More than reward funding. 100-200 mio DKK today. You have to get registered as a Financial Institut. You have to be a A/S

  • You get 6-7%, if you lend money out.

  • And you get more easy money, if you need money. And you pay 8% in interest.

He think that the banks are going to buy the credit based funding, and close dem.


Match Funding - Merkur Bank did agree to lend money to Løs marked, it they got 400.000kr thru Credit Based crowdfunding.


You car lose all your money here. Or win a lot. Big risk.


Equity based crowdfunding

Crowd Invest - a platform to buy and sell equity to private companies. Unlisted Shares. In UK there are a platform, there have been selling and buying for 50 mio/week of unlisted shares. It have a possibility for big growth.


2x rules in UK

  • Investment is tax deductible up to 600.000 DKK

  • You can get 82% back, if the company goes insolvent

UK got 82.000 new jobs out of it, so it’s good money for the state.


There are 4.000 bio DKK in pension money in denmark. They stand there passive. You got 40% tax deduction, when you did put them in = you have to pay that back, before you invest. If the government open up for that to use your pensions for that.


Social Entrepreneurship

There are going to be a category for Social Entrepreneurship at Booomerang. There are a lot Social Entrepreneurs already there.

Sociale Entreprenører i Danmark (SED)| Tlf. 40 11 86 40 | Email: mail@socialeentreprenorer.dk | CVR-nr. 34147981