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Appendices

Appendix A - Crowdfunding Growth Development

Appendix Figure 1: Growth of Crowdfunding Platforms 2008-2012 (Statista, 2014)

Appendix Figure 2: Worldwide Crowdfunding Volume 2009-2012 (Statista, 2014)

N. Scholz, The Relevance of Crowdfunding, DOI 10.1007/978-3-658-09837-7, © Springer Fachmedien Wiesbaden 2015 78

Appendix B Platforms Platforms Platform Cumulated Cumulate Country Characteristics Funded Website d Pledges Founded Projects

Buzzbnk Buzzbnk is a platform for social enterprises and other ventures persuing 80 socially- www.buzzbnk.org - Overview ofSelected Reward- social change. It allows fundraisers to set milestones that breaks the overall and over UK, 2011 target into interim steps while all funds can be kept after reaching the first environment £725.000 milestone. Backers can also pledge their time and support next to money in ally minded the form of writing a blog or sharing the campaign via their own website. projects Crowdfunder As the sister site of Crowdcube, an equity based-platform, Crowdfunder is http://www.crowdfunder.co.uk/ the UK's largest Crowdfunding network which merged with Peoplefund.it n.a. n.a. UK, 2011 in 2012. The website allows any type of project looking for funding.

Crowdrooster Specialised Crowdfunding platform on (hardware) products and design- www.crowdrooster.com

driven businesses looking to take their ideas to market through pre- Crowdfunding Based n.a. n.a. UK, 2013 purchase of the Crowd. The platform works on an 'all-or-nothing-rule' and projects are vetted for their feasability before going online. IndieGogo Indiegogo is a global fundraising site that hosts any type of Crowdfunding https://www.indiegogo.com/ project, e.g. film, music, technology, personal causes, charity, gaming, etc. USA, 2008 Next to the 'all-or-nothing-rule' it offers the opportunity to keep the money n.a. n.a. raised from a campaign that does not reach its goal.

Kickstarter Kickstarter is the world's largest funding platform for any type of project, ca. 6.6m https://www.kickstarter.com/?ref=nav everything from films, games, music, design and technology. To create a people over 65.000 USA, 2009 campaign, you must have citizenship in the US or UK, Canada, New have projects Zealand, Australia or the Netherlands. Funds raised can only be kept if the pledged funding goal is met ('all-or-nothing-rule'). $1 billion RocketHub RocketHub is an open community platform and open to any kind of n.a. n.a. http://www.rockethub.com/ project. It exhibits a more social concept beyond funding projects such as USA, 2010 options to vote for projects and earn badges on the site for special promotion purposes. Fundraisers can keep all the money raised.

Appendix C - Interview Guide

Questions for Crowdfunding Projects

Who (team/product):

When:

Where:

Length (ca. 45-60 minutes):

Brief Background:

I am Nadine Scholz, a Master student in the programme Innovation Management and Entrepreneurship at Manchester University, UK. I am researching the relevance and impacts of Crowdfunding on the innovation process of small entrepreneurial firms in developed countries. I invite you to be part of this research through an interview to contribute to a better understanding of the Crowdfunding phenomenon and generation of valuable findings for start-up founders and stakeholders.

Thank you very much for your co-operation and time!

A. General Part

1. Could you please briefly specify what makes you and your team entrepreneurial and how your personal environment supports you?

2. Can you please describe your reasons/motivations to use Crowdfunding over traditional financing methods?

3. Which factors influenced your choice of the used Crowdfunding platform? 4. Can you please explain in which development state your idea was when you used Crowdfunding?

B. The Crowdfunding Impact

B.1 The Role of the Backers

5. Can you please explain how your project benefited from the 'collective wisdom' of the Crowd as a resource (e.g. finance, knowledge, feedback, networks, etc.)?

6. How do you see the role of your backers in creating a link between potential customers and your good idea for subsequent product launch? How do you interact with them and what are the difficulties in interacting with them?

B.2 Your Crowdfunding Campaign

7. Can you please explain how you involved your Crowdfunding community in terms of co-creation in new product development (e.g. in the concept, design, etc.)?

8. Could you please describe the development progress of your product during and after your campaign? What difficulties did you face?

9. Please elaborate on the main benefits and challenges in realising product launch with respect to Crowdfunding? How did you overcome these challenges? Can you provide examples?

10. Could you please describe the progress during and after your campaign in terms of the development of backer numbers? How were your pre-orders/sales affected by Crowdfunding?

B.3 Post Crowdfunding Campaign

11. How did Crowdfunding impact scaling-up your business after the campaign in terms of managing resources (e.g. customers, sales, product diversification, knowledge)? x How did you manage business growth in terms of the transition to other financing instruments?

12. Can you please specify how Crowdfunding affects your cost and revenue streams in the innovation process?

C. Finishing Questions

13. Please explain three key factors that facilitated and hindered the process of launching your innovation with respect to Crowdfunding?

14. Can you see Crowdfunding as an equal financing instrument to traditional ones such as Venture Capital or Angel investment?

Questions for Crowdfunding Experts

Who (team/product):

When:

Where:

Length (ca. 45-60 minutes):

Brief Background:

I am Nadine Scholz, a Master student in the programme Innovation Management and Entrepreneurship at Manchester University, UK. I am researching the relevance and impacts

of Crowdfunding on the innovation process of small entrepreneurial firms in developed countries. I invite you to be part of this research through an interview to contribute to a better understanding of the Crowdfunding phenomenon and generation of valuable findings for start-up founders and stakeholders.

Thank you very much for your co-operation and time!

1. Can you please explain Crowdfunding's main functions in bringing innovations to the market?

2. How do you see the role of backers in creating a link between potential customers and the entrepreneur's good idea for innovation commercialisation? 3. Could you please explain the main benefits and challenges of a Crowdfunding campaign regarding the innovation process?

4. How does Crowdfunding potentially impact and change the typical innovation cycle?

5. In your view, how can Crowdfunding potentially impact and change the typical innovation adoption cycle?

6. Can you please explain from your perspective, how Crowdfunding impacts scaling-up the business after a Crowdfunding campaign and how it changes the way resources are managed?

7. What is your future perspective on Crowdfunding? Can you possibly see Crowdfunding as an equal financing instrument to traditional ones such as VC?

Appendix D - Overview of Interviewees

Project Type/ Type Interviewee Company Location Size Year Type consumer small A Co-founder, COO UK 2012

electronics company new B Co-founder technological Germany start-up 2013 design consumer small C Co-founder USA 2012 electronics company consumer recently D Co-founder USA 2014 electronics founded Crowdfunding Projects consumer recently E Founder USA 2014 electronics founded Chamber of Industry and A Start-up consultant Germany Commerce Munich PhD Researcher in B University France Crowdfunding C Venture Capitalist Investor UK Crowdfund Research Specialist

Crowdfunding Experts Experts Crowdfunding D Capital USA and academic Advisors

Appendix E Length total # Project Company Country Year Total # backers $ goal Total $ pledges (days) comments

1 RigidBot 3D Printer Invent-A-Part Provo, UT, USA May-13 45 1,952 31,500 1,092,098 2,693 – Overview ofKickstarter

2 Lix- Smallest 3D Printer Lix London, UK May-14 30 8,030 30,000 731,690 838 Plug: the brain of your 3 devices CGC team Newark, USA Sep-13 60 12,840 69,000 1,229,074 2,369

4 Neptune Pine Smartwatch Neptune Montreal, Canada Dec-13 33 2,839 100,000 801,224 9,328

5 Circuit Scribe ElectronInks Urbana, IL, USA Jan-14 42 12,277 85,000 674,425 428 forQuantitativeAnalysis Projects 6 Pixelstick Bitbanger Labs NY, USA Dec-13 46 2,171 110,000 628,417 186

7 remee Bitbanger Labs NY, USA May-12 46 6,557 35,000 572,891 717 Bethesda, MD, 8 The Micro: 3D Printer M3D USA May-14 30 11,855 50,000 3,401,361 4,292

9 FlyKly Smart Wheel FlyKly NY, USA Nov-13 41 2,358 100,000 701,239 623 1 0 SmartThings SmartThings Minneapolis, USA Sep-12 30 5,694 250,000 1,209,423 2,567 1 1 Nifty MiniDrive NiftyDrives Manchester, UK Aug-12 28 9,805 11,000 384,319 1,310

Project data is taken from http://www.kicktraq.com/

1 2 AirDog Helico Aerospace Ind. Palo Alto, USA Jul-14 40 1,357 200,000 1,368,177 642 1 3 Kano Kano London, UK Dec-13 30 13,387 100,000 1,522,160 509 1 4 Scrooser Scrooser Manufactory Dresden, Germany Jul-13 30 224 120,000 186,545 73 1 5 tado cooling Tado Inc. Munich, Germany Jun-14 30 1,601 150,000 204,287 396 1 6 The Pocket TV Infinitec Dubai, UAE Jul-12 40 3,164 100,000 501,321 1,717

1 7 Pebble E-Paper watch Pebble Technology Palo Alto, USA May-12 38 68,928 100,000 10,266,844 15,613 1 8 Dash - Wireless Headphones Bragi LLC Munich, Germany Mar-14 50 15,995 260,000 3,390,121 4,943 1 9 GameStick GameStick San Francisco, USA Feb-13 30 5,691 100,000 647,658 4,267 2 0 Pono Music PonoMusic Team San Francisco, USA Apr-14 35 18,220 800,000 6,225,354 12,461

Mean 37.7 10,247 140,075 1,786,931 3,299