Transcript KEYS TO SUCCESS NCURA Region IV Spring Meeting April 27

National Council of University Research Administrators
Crowdfunding—a
Matter for
Sponsored
Research Offices?
KEYS TO SUCCESS
NCURA Region IV
Spring Meeting
April 27 – 30, 2014
© 2014 National Council of University Research Administrators
Panelists
NCURA Region IV Spring Meeting
April 27 – 30, 2014
• Natasha Chopp, Research Development & Marketing
Manager, Michigan Technological University
• Patience Graybill Condellone, Pre-award
Administrator, Southern Illinois University
Edwardsville
• Jerry Weinberg, Associate Provost for Research, Dean
of The Graduate School, Southern Illinois University,
Edwardsville
@ 2014 National Council of University Research Administrators
NCURA Region IV Spring Meeting
April 27 – 30, 2014
“First the crowd, then the funding”
“At the end of the day, its all about the crowd.”
@ 2014 National Council of University Research Administrators
Crowdfunding Models
NCURA Region IV Spring Meeting
April 27 – 30, 2014
• Pre-sale of a product
– Suits prototype development, filling the “valley of
death” investment gap between discovery and
commercializing a product
• Donation-based
Fitting for research and creative activities
• Equity-based – crowdfunding to
accredited investors only
– Appropriate for start-ups
@ 2014 National Council of University Research Administrators
Issues to Consider
NCURA Region IV Spring Meeting
April 27 – 30, 2014
Assurance of proper use of public funds
– Accountability and reporting?
– Protection of the institution’s reputation (brand)?
– Liability of the institution and individuals?
Administration of funds
–
–
–
–
Gift or grant?
Compliance issues met? (IRB, IACUC, IBC, COI, …)
Funds administered through institution’s foundation, office of sponsored projects, or both?
Administration fee in budget?
Terms of the Crowdfunding Site
– Do they protect the institution’s IP rights?
– Do they require a fee? Who pays for it?
Open to university community
– Who may crowdfund?
•
Staff, administrative units, students, student organizations?
Successful campaigns require good marketing
– Is there an natural or developed social network associated with the project?
– Who determines what gets marketed to alumni and other university affiliated supporters?
– Support for video production?
@ 2014 National Council of University Research Administrators
Donation Models
NCURA Region IV Spring Meeting
April 27 – 30, 2014
• All-or-nothing
– If you don’t reach your funding goal, you don’t
collect any of the donated funds
• Creates urgency/need
– Some offer the option to pay an extra fee to
collect the donations
• All-donation
– All donated amounts are given to the project
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Outreach/ Connection
NCURA Region IV Spring Meeting
April 27 – 30, 2014
• Connects the research/project creator with
the community
• Question/Comments section
• Social Media
• Donors make a difference
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SIUE: A Hybrid Model Approach
NCURA Region IV Spring Meeting
April 27 – 30, 2014
• PI’s “route” the proposal to the Office of
Research & Projects as they would for any
externally-funded project: (compliance
and budget)
• Donated funds go to Foundation
• Financial administration of the project lies
with ORP
• ORP connects PI with Marketing
@ 2014 National Council of University Research Administrators
Superior Ideas Crowdfunding Site
NCURA Region IV Spring Meeting
April 27 – 30, 2014
• Built internally at Michigan Technological University
• Already had the donation mechanism
• Resources
– Researchers
– Staff
• Legitimacy
• Experiment
• All-donation based
– Tax deductible
EXAMPLE:
http://www.superiorideas.org/projects/rooftop-veggies
@ 2014 National Council of University Research Administrators
NCURA Region IV Spring Meeting
April 27 – 30, 2014
Some Resources:
NCURA Region IV Spring Meeting
April 27 – 30, 2014
Top Ten Reasons Crowdfunding Campaigns Fail
(and What Can Bring Them Back)
www.huffingtonpost.com/lee-schneider/crowdfundingfails_b_4171823.html
10 Tips for a Successful Crowdfunding Pitch Video
www.tubestart.com/blog/10-tips-successful-crowdfundingpitch-video.html
Chopp, N., P. Graybill Condellone, and J. B. Weinberg,
“Crowdfunding: Navigating the New Frontier in Research
Funding and Administration”, in NCURA Magazine,
October/November 2013, Vol. XLV, No. 5, pp. 32-34.
@ 2014 National Council of University Research Administrators
References
NCURA Region IV Spring Meeting
April 27 – 30, 2014
Hall, Alan. “New Research Shows Optimism For Crowdfund Investing Continues to Rise.”
Forbes. Forbes Magazine, 01 Nov. 2013, Web 16 Jan. 2013.
Webinar by Finnegan, Farabow, Garrett & Dunner, LLP. “Crowdfunding for University Startups.”
23 Jan. 2013.
Ranganathan, Jai. “Crowd-funding for Research Dollars: A Cure for Science’s Ills?” Scientific
American. N. p., 23 May 2012. Web 04 Apr 2013.
Wheat, Rachel, Yiwei Wang, Jarrett Byrnes, and Jai Rangnathan. “Raising money for scientific
research through crowdfunding.” Trends in Ecology & Evolution. Vol. 28, issue 2. 71-72, 06
Dec 2012.
Webinar hosted by Barbara Walker, Director of Research & Development at University of
California—Santa Barbara. “Crowdfunding for Academic Research.”
@ 2014 National Council of University Research Administrators