The Crowdfunding Revolution: How to Raise Venture Capital Using Social Media

by Lawton, Kevin; Marom, Dan

• ISBN13: 9780071790451
• ISBN10: 0071790454
• Edition: 1st
• Format: Hardcover
• Copyright: 2012-12-04
• Publisher: McGraw-Hill Education

Summary

The Groundbreaking New Method for Raising Venture Capital Through Social Networks

Table of Contents

Introduction	p. ix
The Road Here
The Rise of the Crowd	p. 3
The Dynamic Duo: Social and Physical Technologies	p. 7
Affinity Groups	p. 10
Participation and the New Pro-sumer Class	p. 14
The Response to the Loss of Social Capital	p. 15
The New Crowd-ployment Paradigm	p. 16
The Crowd-poration	p. 17
The Decline of Established Financing	p. 19
The Rate of Change	p. 21
The Durability of Expertise	p. 22
A Multidisciplinary World	p. 23
Market Time Compression	p. 24
Capital Efficiency and the Rolling Close	p. 25
Macroeconomic Sensitivity	p. 27
The Start-Ups' Response	p. 28
The Venture Capital Industry's Response	p. 29
The Market Sizing Fallacy	p. 31
The Base of the Funding Pyramid	p. 32
The Decline of Outlier Identification	p. 35
Curation: The New Leadership	p. 38
The Emergence of Early Financing	p. 41
The Rise of Crowdfunding	p. 47
At the Edge of Chaos	p. 53
Do It With Others (DIWO)	p. 54
Critical Mass	p. 57
The New Ritual, the New Status	p. 59
Rivers Without Cascades	p. 60
Valuations	p. 63
Long Tails and Shrinking Heads	p. 64
Gender Equalization	p. 65
The Crowdfunding Campaign
Benefits	p. 69
Money	p. 71
Marketing	p. 72
Participation and Emotional Attachment	p. 75
Currying Serendipity	p. 78
Returns, Rewards, and Perks	p. 79
The Artful Ask	p. 85
Authenticity: Keeping It Real	p. 87
Impact and Appeal	p. 90
The Team	p. 96
Clear Goals	p. 97
Starting Fires with Influences and Core Fans	p. 99
Rewards and Perks	p. 102
The Journey	p. 111
Follow Inspiration with Massive Action	p. 113
Drive Traffic with Social Networking	p. 115
Motivate Your Network: Keep Them Involved	p. 117
The Road Ahead
Infrastructure and Ecosystems	p. 121
The Power of Virtual Infrastructure	p. 122
The Ecosystem	p. 126
The Power of Tags	p. 129
Integration and Evolution in the Ecosystem	p. 132
When Dartboards Are Better Than Groupthink	p. 135
Funding the Way the Market Wants It	p. 136
Solving the Hoarding Dilemma	p. 138
Kicking It Downstream	p. 142
Intellectual Property Entanglements	p. 143
Prediction Markets and Mining the Collective IQ	p. 145
Diversity Matters	p. 148
The Performance-tocracy	p. 156
What's an Expert?	p. 159
Trendspotting	p. 161
The Market Is the New Seniority	p. 162
Prediction Markets Commoditized	p. 164
The Intersection with Crowdsourcing	p. 167
No Network, No Funding	p. 168
Crowdfunding Crowdsourced Ideas	p. 170
The Crowdfunding and Crowdsourcing Nexus	p. 171
The New Investment Models	p. 173
Venture Capital Meets Crowd Capital	p. 174
Incubators and the Crowd	p. 176
Crowd Capital Meets Crowd Capital	p. 176
Donations First, Investments Later	p. 177
Here Comes Wall Street	p. 177
A New Capital Allocation Mechanism	p. 181
At the Community Level	p. 182
Grants and the Arts	p. 183
Reinvigorating the Community	p. 183
The Virtual Tech Hub	p. 184
Regulation and Policy Status	p. 187
The Current State of Affairs	p. 187
United States	p. 194
The Crowdfund Intermediary Regulatory Advocates (CFIRA)	p. 199
Crowdfunding Professional Association (CfPA)	p. 201
National Crowdfunding Association (NLCFA)	p. 201
Europe	p. 202
International	p. 203
Regulation and Policy Directions	p. 205
Pray for Much Failure	p. 207
Taxes, Taxes, Taxes	p. 209
Patents and Crowdfunding Platforms	p. 210
The IP Landscape	p. 211
The Velocity of Innovation and the Effects of the IP System	p. 213
A Perpetual Motion Machine of Innovation	p. 216
Epilogue	p. 217
Notes	p. 223
Acknowledgments	p. 233
About the Authors	p. 234
Index	p. 235
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