Unlocking Billions of Dollars in Primary Industry Through BOLD Crowdsourcing

Unlocking Billions of Dollars in Primary Industry Through BOLD Crowdsourcing

Primary industry is starting to sit up and take notice of the value delivered by crowdsourcing to validate concepts at low risk, solve complex challenges, find new innovative suppliers and automate work. Industrial leaders are emerging with sustainable new business models that include crowdsourcing and they are able to clearly demonstrate the value that it is delivering to the market.

In this post we run through two examples of companies leading the way with crowdsourcing in the extractives industry.

1. The OZ Minerals $1million AUD Explorer Challenge

Modern Australian mining company OZ Minerals and their partner Unearthed Solutions are changing the way the industry thinks about mineral exploration, and the value that can be unlocked by being open with data. Through the Explorer Challenge, OZ Minerals is opening up more than 5 terabytes of their private exploration data, with a $1million AUD prize pool for the crowd to locate new mineral targets.

OZ Minerals is not the first company to run this style of competition. Their point of difference, through the partnership with Unearthed, is making geological data accessible, open and attractive to data scientists in a push to involve more disciplines and approaches in the challenge of finding essential minerals. So what is the history of this approach to exploration prior to the Explorer Challenge?

Back in 1999, former CEO of Goldcorp Rob McEwen attended a lecture at the Massachusetts Institute of Technology about the benefits of employing open source software. Inspired by this framework and the value created by open collaboration, McEwen realised the significant potential for applying this concept in the mining industry. Finding new exploration targets presents a key resources sector challenge that fits this framework.

In 1999, Goldcorp was a $100 million gold mining company, with an under-producing mine, Red Lake. At the same time, it was struggling to find new resources, despite a high calibre exploration team. McEwen became aware that there might be more value locked in the exploration data than his geologists could extract.  He released this data to the public, totalling a mere 400MB back in 2000, with a CA$575,000 incentive to review it and identify additional targets. The result? Thousands of submissions from geologists, mathematicians, and physicists that identified an additional $6 billion worth of gold on Goldcorp tenements. The process reduced the potential exploration period by two to three years, and transformed Goldcorp from a struggling  junior miner into an industry leader.

The lecture attended by McEwen back in 1999 was presented by the founder of the Linux operating system, Linus Torvalds. If you think you are not familiar with Linux – guess again. Twenty years on from that lecture, every Android phone runs on Linux, and if you have an iPhone instead, almost all webpages and applications operate on Linux. This software has achieved world domination, and it is open.

And Goldcorp? Following the competition, Goldcorp grew the $1 billion worth of gold into a $10 billion company, and is nowadays considered one of the most innovative gold mining companies in the world.

Despite this success it took the industry a long time to look to repeat it. It wasn’t until 2015, when Integra Gold’s innovative CEO, Steve de Jong, launched the Gold Rush challenge, that we saw a similar approach. Integra had recently acquired 2 historic mining properties, along with over 6 terabytes of historical data. Steve realised that this would have taken his team many years to process and interpret in order to predict where the additional gold resources may occur. To speed up this process Integra launched the Goldrush challenge with a $1million CAD incentive for the crowd to work through the large dataset and identify potential new gold targets. The competition cut the process down from many years to a few months.

The OZ Minerals Explorer Challenge is now breaking new ground with Unearthed Solutions to use this approach and build scalable processes and tools for providing data to the crowd, and to provide industry with a clearer, long term path for using crowdsourcing in their workflows.

2. The Newcrest Crowd

Realising the value that crowdsourcing can deliver across the resources industry, Newcrest has positioned itself as a global leader in crowdsourcing. They are the first mining company to employ a global crowdsourcing strategy, enabling them to realise maximum impact.

Accessing digital talent on demand

As demand for digital capabilities and skills continues to grow, it becomes unrealistic to rely solely on internal talent sources, either by upskilling current teams, or hiring and contracting these skill sets into the organisation. Newcrest sought a long-term solution to easily access digital talent on demand and to work with some of the best innovators in the world to identify, develop and implement new solutions for multi-million dollar operational problems.

Gavin Wood, Chief Innovation Officer:

“We have mining business problems and challenges that we’ve been trying to solve for a long time. By putting these out to ‘the crowd’, we can access different thinking and not be constrained by resource or geographic boundaries. This allows us to develop new ideas and solutions in a low-risk and low-cost way, lets our people focus on using their domain expertise and provides opportunities for those who make up the labour force of the future.”

Newcrest worked with Unearthed Solutions  to steadily build their strategy to access digital innovators via multiple competitions. Newcrest has provided information, data and tools that clearly articulate and quantify the impact that particular operational problems are causing the business. These well-defined problems and supporting datasets are then presented to the online innovation community through the Newcrest Crowd as a pipeline of ‘challenges’ to be ‘hacked’ for cash prizes and business development opportunities. In combination with their big data platform, Newcrest is minimising the time taken to transition these solutions to production. This will stimulate new opportunities for existing businesses to deliver innovative solutions to Newcrest and others.

Hydrosaver, Newcrest’s first online challenge, was released to Unearthed’s community in February 2018. Newcrest asked innovators to predict the density of a tailings underflow inefficiency at Cadia mine (and, therefore, water content), three hours ahead of time, to enable more efficient recycling of water from the tailings process. Participation was truly global with solutions received from countries including Canada, India, USA, Argentina, China and South Africa. 150 highly skilled individuals formed teams who submitted over 750 predictive models.

Sherief Khorshid and his team from AI tech startup Three Springs Technology took first place in the competition. Following their win, Three Springs signed a contract with Newcrest to implement their solution into production and integrate it with the Newcrest technology stack.

Since Hydrosaver, Newcrest has run four additional crowdsourcing challenges via the Newcrest Crowd ranging from extracting data from exploration photography, to engineering solutions for crushing circuits and safe plant startup processes. Newcrest are continuing to lead the way in crowdsourcing for industrial applications and have rolled out the Newcrest Crowd across their operations.

Who will be the next industrial enterprise to develop a crowdsourcing strategy?

Author: Holly Bridgwater; Industry Lead, Crowdsourcing; Unearthed Solutions

Next week on Friday April 5 we will announce the winners of the first ever BOLD Awards at a gala dinner ceremony at the H-FARM campus just outside Venice, Italy. We’re looking forward to meeting the award winners in 12 categories, the category sponsors, and our event co-organisers at H-FARM. Maybe you are as well – the event is a sell-out though we do have a Waiting List you can sign up to in the event that space becomes available.

10 BOLDest Accelerator Hubs In Europe

10 BOLDest Accelerator Hubs In Europe

The gala dinner ceremony to announce the 12 category winners of this year’s inaugural annual BOLD Awards will be held on the campus of H-FARM. It is an innovation platform which supports and accelerates the creation of new startup businesses, as well as the digital transformation of more established Italian companies and the education of young people.  

Startup accelerators are in most cases profit-driven programmes that accept applications from new companies to attend classes run by a small team of advisers, or maybe receive a one-to-one service. Company founders are expected to have already developed their ideas to at least a business plan stage, and they are provided with seed capital, mentoring and guidance, and events are organised at which they meet potential investors and key contacts in their business sector. This normally takes place over a 3-4 month period in return for equity in the business (usually 5-10%). The accelerator hubs may also offer reduced-rate workspace and access to technology and specialist tools.

H-FARM began in 2005 and has so far invested €27.3M to support the development of over a hundred innovative companies. It has also helped 200 international brands take advantage of opportunities made possible by digital transformation, and educated more than 1.000 students. Structured like a campus, it is currently expanding its facilities from 14,000 sqm of buildings with a 20-hectare park to 42,000 sqm of buildings distributed over 51 hectares of land close to Venice. H-FARM’s Co-founder and  Vice Chairman Maurizio Rossi is the Chairperson of this year’s BOLD Awards international judging panel.

We’ve taken a look across Europe at accelerator hubs in nine other countries. We’re not saying these ones are the biggest, and we’re not recommending any of them in preference to others; it’s a cross-section of an important sector that’s helping to develop startups across the whole continent and we’ve highlighted just one hub per country.

UK Founders Factory in London was co-founded by Brent Hoberman (co-founder of LastMinute.com) and Henry Lane Fox in London in 2015. It has so far secured over £100m in funding for 70 startups. It varies from most accelerator hubs because it requires each startup founder to put together their own bespoke plan for up to 6 months of support from a team of mentors and sector specialists. FF provides the startups they take under their wing with £30,000 in exchange for 4%-8% equity. Corporate partners contribute to this initial funding to be able to engage with aspiring innovators in their market sector, and include L’Oreal. Startup founders are also introduced to angel investors and VCs for them to pitch for further investment.

Netherlands  High Tech XL in Eindhoven provides 3 month accelerator programmes to startups, plus a €15,000 investment for 8% equity. They also helps corporates to become more entrepreneurial through collaborations with startups and open innovation with external specialists and communities. Thirdly, High Tech XL provides expertise in all areas of visual communications for businesses to communicate more effectively with their clients and other stakeholders, both online and offline.

Germany Startupbootcamp in Berlin specialises in working with startup entrepreneurs in the Smart Transport and Energy sectors. They run three month programmes, working with ten startups at a time, providing funding (€15,000 for 8% equity), mentorship, office space in central Berlin, and access to a global network of corporate partners and investors. Their USP is support from Airbus, Cisco, HERE, Kuehne + Nagel, Mercedes-Benz, SBB Cargo and VINCI, who all provide expertise, market exposure, and access to a network of company professionals that most early-stage smart transportation & energy startups would not be able to otherwise access.

France Station F in Paris claims to be the world’s biggest accelerator campus, providing a whole entrepreneurial ecosystem under one roof. Their Founders Program is one of 30 they provide. Last year, roughly 4,000 startups from over 50 countries applied to join it, from which they accepted approximately 250 startups, 6% of the applicants. It is an in-house program for early-stage companies from all sectors and all countries. Startups that join are required to stay a minimum of 3 months and can send up to 15 employees. The program does not provide investment for equity and startups need to pay for their desks.

Other programs cover specific business and market sectors, such as foodtech, adtech, beauty tech and fashion. Many of the programs exist due to corporate support from established businesses that want to keep a finger on the pulse of possible new breakthroughs and disruptions in their marketplace.

Switzeland Kickstart is an accelerator program delivered through Impact Hub Zurich since it was launched in 2015 by digitalswitzerland. Each year, Kickstart brings around 100 entrepreneurs and innovators from the science and engineering sectors to Switzerland to collaborate with key players on proof-of-concept work, pilot projects and other innovation partnerships. Once selected to take part, the program is free of charge (no fees or equity required). Kickstart provides access to executives and decision-makers at their corporate partners which include Coop, Credit Suisse, Migros and Swisscom, AXA Winterthur, City of Zurich, ETH Zürich, EY, Gebert-Rüf-Stiftung, Mercator Foundation Switzerland, Stäubli, Swisslinx and University of Zurich.

Portugal Lisbon Challenge works on behalf of Beta-i with 15 startups at a time to follow a 10 week program that concludes with an Investment Day pitch to potential investors. It offers all startups that join one of their programs €15,000 for 2% equity, and then a further €55,000 for 5% to the startups that complete the program and receive wider investment backing.

Candidates can apply from anywhere in the world, though their business has to be incorporated in Portugal and company founders have to attend the fulltime 10 week course.

Lisbon Challenge has so far sifted through 4,300 applications to work with 210 startups in more than 20 industry sectors, and over 140 remain active. They have engaged their startups with over 500 mentors and helped them to raise €75M.

Norway Based in Oslo, Startup Lab has been investing in and mentoring tech startups since 2013. They offer 3 month programs and investment of up to 3M Norwegian kroner (around €310,000) for 6% to 8% equity. They ideally develop Norwegian tech startups creating products or services for businesses (B2B) or consumers (B2C/D2C). Regardless of whether it’s software, hardware or a combination of these, they want to meet startup founders with global ambitions, and the companies should preferably have launched their product, or have plans to launch within the next six months. The teams accepted on to the program have to physically attend the course in Oslo.

Finland Maria 01 hosts Finland’s next generation of startup tech teams alongside venture capitalists and established companies in an extended ecosystem of know-how, tools and contacts, based in what was originally the first public hospital in Helsinki. These days it gives out a different form of help. It welcomes “the weird, the brave, and the ambitious” as members, and encourages an even wider group of related people to drop in and use its restaurant and bar.

They target scalable startups with global ambitions and an existing product, and receive five applications a week from startups who want to base themselves at Mario 01 for up to three years. They can accommodate over 90 startup teams in their 10,000 sqm of space (so far they have hosted over 700 in total) alongside several VC fund managers who between them have €1.6bn of assets under management.

Sweden Since 2003, Sting (Stockholm Innovation and Growth) has supported hundreds of promising Stockholm-based startups whose combined value exceeds €500 million. Their accelerator program accepts 16 startups per year in the internet or media sectors, and in 2018 Sting won the “Best Accelerator or Incubator in Sweden” prize in the Nordic Startup Awards. They run two accelerator programmes a year, running for four months with 8 startups on each one. Each startup on their programs automatically qualifies for 300,000 Swedish kroner (over €28,000) in exchange for equity. The money comes from around 40 Swedish angel investors through a funding scheme administered by Sting’s own investment company Propel Capital

The BOLD Awards gala dinner ceremony at the H-FARM campus is now Sold Out. Though you can add your name to our Waiting List if you’re BOLD enough for an evening with our international category winners and sponsors.

Surcle And The Power of Crowdsourced Innovation

Surcle And The Power of Crowdsourced Innovation

While some industries have already realized the potential of crowdsourcing, others have not yet been impacted. Kickstarter innovated the world of fundraising, allowing entrepreneurs to connect with capital from all around the world. Websites like Fiverr use crowdsourcing for design and marketing solutions. Wikipedia employed the power of the crowd to create a digital encyclopedia. Founded in 2018, the team behind Surcle has brought crowdsourcing to the industry of hardware and manufacturing.

The team originates from Sourceability, a global electronic components supply chain company dedicated to connecting clients with difficult-to-find electronic components. Through their work at Sourceability, the Surcle team realized that as well as components, companies today face a challenge in obtaining innovative solutions to their business problems. The potential of crowdsourcing as a solution to this challenge became rapidly clear, and Surcle was born.

Surcle enables its clients to pose challenges to their diverse community of innovators – engineers, programmers, designers and other industry experts who are vetted and organized according to the skillset they provide. When a client company posts a challenge, the community competes to offer specifically tailored solutions to the problem. Cash rewards, ranging anywhere from a few thousand to tens of thousands of dollars incentivize active participation. Currently, the Industrial Multi-Protocol Converter challenge is offering $45,000 to the individual or team that can create a messaging system that aggregates industrial sensors and hardware inputs for seamless and real-time tracking.   

The advantages of offering a crowdsourcing option to overcome corporate challenges are immense. Surcle allows companies to draw from a diverse set of perspectives and ideas, expanding beyond the sometimes claustrophobic corporate mindset. Fresh eyes give way to fresh ideas and Surcle provides a far more cost-effective alternative to consulting firms or R&D teams. Currently, Surcle has 18 active competitions and more than $70,000 in incentives.

Surcle And The Power of Crowdsourced Innovation

Surcle’s innovative platform made them an ideal sponsor of the overall Boldest Innovator category for this year’s Bold Awards. The category is dedicated to recognizing the brightest and most original crowdsourcing ideas. The final five nominees for this year’s Boldest Innovator award are:

Plan A is dedicated to combatting climate change through its prediction platform. The platform directs donations towards organizations in those regions predicted to be most vulnerable to climate change.

 Robo Retail is an automated store, capable of storing and selling a diverse set of items to customers. Robo Retail is similar in concept to a vending machine, except that it is the size of a kiosk and capable of managing items of many sizes and shapes. Robo Retail is leading a new era of automated shopping.

Medical Cooling provides an all-in-one, mobile, life-saving device. Paramedics simply carry the Medical Cooling device as a backpack which includes a defibrillator, a vacuum pump, and a ventilator. With advanced telecommunication integration, the medical cooling system also supports Telemedicine options.

Memomi  Memomi is a VR integrated mirror that allows customers to try on virtual products instore. Simply by standing in front of the mirror, a customer can virtually dress in anything from makeup and jewelry to shoes and bags.

The CBOT Physiotherapeutical Robot uses facial recognition technology, a 3D scanner, and an advanced robotic arm to provide A.I. powered, physical therapy treatments to patients.

These companies continue to bring the power of crowdsourcing to novel industries. As the value of crowdsourcing grows, the importance of platforms like Surcle will too. Additionally, crowdsourcing makes R&D affordable to companies and teams of all sizes. The reality is, a well-supported platform featuring crowdsourced innovation will revolutionize the way we approach and overcome problems.

The winner in each of the BOLD Awards’ twelve categories will be announced at a gala dinner award ceremony held at the H-FARM campus just outside Venice, Italy, on April 5 2019. If you think you’re BOLD enough for a very sepecial evening in the company of the award winners, category sponsors and the teams from the event partners H-FARM and Crowdsourcing Week you can apply now for a ticket. 

Author: Noam Levenson


A Perfect Match: Artificial Intelligence and Crowdsourcing

A Perfect Match: Artificial Intelligence and Crowdsourcing

Over the past decade, the field of artificial intelligence (AI) has seen striking developments. There are now dozens of domains in which AI programs are performing at least as well as (if not better than) humans. Crowdsourcing on the other end has matured and reached a certain saturation; and while companies and organizations do see crowdsourcing as a valuable and cost-efficient mechanism, there is a growing awareness of its limitations.

This is now changing with the convergence of AI and crowdsourcing: the latter has evolved into a more pragmatic approach for corporates and organizations, who access the crowd not only for co-creation of products or their ingenuity but rather as trainers for AI systems. The other side of the equation is the growing awareness of the potential AI has in empowering crowds and enhancing their value.

In fact, AI and crowdsourcing are a perfect match. Take for example machine learning (ML) – a subset of AI. ML algorithms build a mathematical model of sample data, known as “training data”, to make predictions or decisions without being explicitly programmed to perform the task. This outcome is the result of two powerful forces in the evolution of information retrieval and analysis: natural language processing (NLP), and crowdsourcing.

Today we are accessing the knowledge of the crowd to label data – for instance to label a picture to be a cat or a dog. But this is just the beginning; crowds can provide data sets – for example, an individual or a group of people could provide data regarding their health, which an AI-system could collect and analyze, thus supporting the development of new treatments. And much like current crowd-based labor markets, where people are getting paid for performing micro-tasks (e.g. Amazon’s Mechanical Turk, or Witkey) – the crowd will either get paid for its data or will provide data for free to help advance a good cause for humanity (as in the case of CancerBase). Another exciting example is that of  sbv IMPROVER – a platform that is developing a crowdsourced and AI-based classification challenge on microbiome samples from inflammatory bowel disease patients.

Combining AI with the insights of annotators and the information provided and encoded by large numbers of humans, which traditionally has been performed by small numbers of people (usually experts), can allow companies and organizations to acquire large labeled datasets at lower cost, thus making R&D and production processes more efficient and less costly.

The other side of the equation is how ML can be harnessed to leverage the complementary strengths of humans and computational agents to solve crowdsourcing tasks. One of the main challenges of managing large online communities, especially communities who produce large quantities of data and information, is the challenge of synthesizing this information, i.e. creating knowledge – insights, patterns, predictions and more. Most communities rely heavily on human moderators, and can use analytics tools to analyze quantifiable participation patterns, but not the (sometimes fuzzy) content produced by humans.

Another problem with manually managing online crowds is the need to identify the right target audience, a sub-group if you will, for a specific ask, task or message. Take marketers that manage online communities, for example: they need to reach people who can contribute to their campaigns and not trolls, or just irrelevant participants. Remember that invaluable communication from a marketer is perceived as spam and could cause reputational damage.

Crowdsourced-AI, however, helps to overcome such problems. It enables human-like intelligence, allowing individuals and crowd subsets to be better analyzed and targeted. Even more so, AI-based engines can identify patterns in crowd behavior as well as discursive patterns (as in the case of an exciting Israeli startup – Epistema).  An AI-based crowdsourcing, or a crowd-based AI would allow to bridge between the basic level of data and information – which machines can analyze much better than human beings – and the knowledge domain, which is in the highest cognitive level, currently only performed by humans.

This vision of crowdsourcing our opinions and combining them with AI‘s superhuman ability to crunch data and come up with patterns, stands behind IBM’s “Project Debater – Speech by Crowd” as IBM dubs it – a “new and experimental cloud-based AI platform for crowdsourcing decision support.” It solicits arguments for and against a specific topic from as many humans as possible and then uses them to create debate speeches.

Looking even deeper into the future, there is a third type of AI-and-crowdsourcing convergence, only in this case, the crowd isn’t composed of people, but machines. This is what I call “Machine Sourcing” – the fourth component of the “Big Knowledge” revolution, along with AI, crowds and advanced data visualization. Machine Sourcing is based on machines that can not only write code, program and develop new algorithms, but create an algorithm that can analyze other algorithms, decide which ones serve a certain purpose, and use them to create another set of algorithms – or neural networks. Google’s AutoML is an early example of such existing technology: “neural nets that can design neural nets”. Wow!

sbv IMPROVER is sponsoring the Boldest Scientific Project in the international BOLD Awards. Details on the final five nominees in this category are available here. The winner will be announced at a black-tie award ceremony being held very soon at the campus home of  accelerator hub  H-FARM near Vencie, Italy, on April 5 2019. You can apply if you think you’re BOLD enough for one of the remaining event tickets for a unique gala dinner evening with the award winners, sponsors and the teams from H-FARM and Crowdsourcing Week.

Author: Dr Shay Hershkovitz

5 Ways Equity Crowdfunding Provides More Than Capital Investment

5 Ways Equity Crowdfunding Provides More Than Capital Investment

Many successful businesses reach a stage where transformational expansion to take it to the next level, whether that might be developing the next version of a product or setting up a Sales and Marketing team, can’t be funded fast enough through sales income. Equity crowdfunding, through which backers invest in businesses for a share of the equity, has opened a door for a new generation of entrepreneurs.

Prior to crowdfunding, a key source of startup business investment was often a bank loan, though these are hard to come by for a business that does not have a trading history and some evidence of future orders. Venture Capitalists often work to minimum sums that exceed the seed investment amounts that startups are looking for.  Yet the money available from “friends and family” is often not enough. This could leave an entrepreneur with few options other than to gamble by loading up expensive debt on credit cards. Relatively high interest charges could lead down a slippery slope ending in personal bankruptcy or a forced sale of assets – which might include the family home.

In the UK the Government has encouraged a relatively low level of involvement from the financial regulators which has led to a flourishing equity crowdfunding marketplace. Another incentive to support UK entrepreneurship is the generous tax benefits available to investors, explained here on the Seedrs platform .  These benefits not only compensate investors for most of their losses if the businesses they back fail to survive, they also shelter future income from successful investments from a full tax liability.

In recent years many startups have used equity crowdfunding to successfully raise funds for businesses of all stages and sizes. One such business is Borrow a Boat, who describe themselves as “an Airbnb for boat owners.” They have used two rounds of equity crowdfunding on the Crowdcube platform, first raising almost £470,000 in late 2017 and then almost £1.5m in December 2018. They are one of the five final nominees in the BOLD Awards crowdfunding category.

Importantly, equity crowdfunding can deliver more than just the capital investment that a business needs. Here are five additional benefits that equity crowdfunding platforms can offer entrepreneurs.

1. Good crowdfunding is good marketing

Businesses raising funding through equity crowdfunding cannot rely solely on their crowdfunding platform to promote their investment opportunity. Sure, each platform has a network of signed-up investors, and some startups have a database of customers to promote their equity offer to. But there will still be a large marketing push needed to convince the existing audiences to invest and to extend news of it to a new, wider audience.

The platforms operate an ‘all or nothing’ policy so have a vested interest in successful raises. They provide marketing support (at a price) that can include extensive PR, digital and social media marketing, and even access to deals on paid-for out-of-home advertising. All this helps the startups to not only attract investors but also acquire customers and raise their brand awareness during the process.

2. Crowdfunding improves customer retention and creates brand ambassadors

Equity crowdfunding is a virtuous circle whereby customers can become investors and investors can become customers – sometimes the most valuable ones. They have a vested interest in the success of a company and often climb the “brand loyalty ladder” to actively promote the business to other potential customers.

Chapel Down is the largest maker of English sparkling wine. Even though they were listed on a junior stock exchange and had VCs queuing up to invest in their business, they ran equity crowdfunding in 2014 and raised £3.95m in 24 days. What they also gained was 1,470 investors who would support the brand through word-of-mouth recommendation and show their brand preference at every gift-giving opportunity, That was “priceless,” CEO Frazer Thompson once told me, and something no VC could ever provide him with.

3. Reach a broad spectrum of investors

The “crowd” involved with an equity crowdfunding platform encompasses a diverse range of investor types which would not be the case if an entrepreneur was to go down more traditional routes of raising capital.

A crowdfunding platform’s “crowd” can include a mixture of VCs, Angel Investors, Family Offices, HNWIs, and institutional and intermediary partners, to put alongside each entrepreneurs’ friends, family, and existing customers.

4. Crowdfunding validates a business

A rule of thumb has evolved that to be successful an equity crowdfunding round should reach 30% of its financial target through pre-selling before going public, as the Scandinavian platform Invesdor explains to potential users.

5 Ways Equity Crowdfunding Provides More Than Capital Investment

The SyndicateRoom platform actually makes it a formal condition of going ahead with them that an entrepreneur must have a cornerstone backer who will invest at least 25% of the initial financial target. Incidentally, their exclusive USP among UK equity crowdfunding platforms is that they are licensed by the London Stock Exchange and can thus work with a business right from an earliest round of seed investment to an IPO.

Once an equity crowdfunding project goes public and these early guarantees of investment appear to fly in so quickly it gives vital confidence to other members of ‘the crowd’ who may have never even heard of the company or met any of its management team.

Entrepreneurs using crowdfunding also receive frequent feedback and analysis on their business, growth and exit plans, by investors carrying out their own due diligence prior to investing, which can be invaluable in a company’s success.

5. Get support throught the company’s lifetime

Businesses that have used crowdfunding can continue to receive support from their investors, from the platform they used, and from other successfully funded businesses they meet along the way.

Last summer, a craft brewery I have invested in organised a social event exclusively for its 1,000-plus investors. It was a way for the brewery founder to say Thank You, an opportunity for us investors to visit the new brewery we had helped fund, and a day to strengthen relationships all round. A large whiteboard and pens were available for numerous investors to offer not only comments on the products but help in all manner of professional sectors.

5 Ways Equity Crowdfunding Provides More Than Capital Investment

More formally, the Seedrs platform has created a community of successfully funded companies which they call their Seedrs Alumni Club. Through the club they maintain links with the businesses as they continue their journey beyond their raise, offering significant value to entrepreneurs through access to exclusive deals and resources to guide their business to further success. This includes support from Amazon Web Services, Amazon Launchpad, and payment facilitator Stripe, to provide technical help and marketing resources for businesses to scale and grow.

 As they do continue to grow, alumni businesses will most likely need to gain further funding and the ongoing support from the crowdfunding platform continues here with many returning to the same platform for further rounds of funding. In 2018, 71 Seedrs Alumni ran further equity crowdfunding campaigns on the Seedrs platform.

Crowdcube calls their equivalent group of post-raise companies The Funded Club.

The value equity crowdfunding platforms offers businesses after raising capital can be equally as important as the value it adds while raising funds.

Entries in the BOLD Awards crowdfunding category all had to show what they had achieved beyond reaching their financial target, and you can see the final five nominees here. The winners of all 12 categories will be announced at an award ceremony held at H-FARM near Venice, Italy, on April 5 2019.

Being Bold in Crowdsourcing

Being Bold in Crowdsourcing

It’s easy to forget that the Internet was once all open. Rather, the Internet has been in a continuous cycle of highly-structured portals and free-flowing information. The initial platforms, like BBS boards, gave way to walled gardens like America OnLine. AOL’s drop in popularity lead to an open field again, and the last decade brought Facebook, Twitter, and other highly-structured platforms back again.

It’s also easy to forget that the word “crowdsourcing” didn’t have to be used since everything – from our interactions with others to the exchange of information – was from the crowd.

So it makes sense that Crowdscouring Week would join forces with H-FARM to create  next month’s first-annual BOLD Awards: a partnership with the world at large to celebrate the wisest, most-applicable innovations worldwide. The best way to understand the future is to, in a sense, go back to the purest form of engagement.

We can go forward by listening.

Crowdsourcing is a process of leaning on the public to strategize your next move. The project-focused platform Mathesia is one of the strongest examples today. Mathesia wants to solve the world’s problems using math as the foundation. Projects on Mathesia are business challenges solved by means of Applied Mathematics, Statistics and Data Science. What is distinctive is the different criteria required to get involved: everyone can participate.

The shift here cannot be overstated. As we shared recently:

In the past, the same concept would have been done all in-house. Startups and small businesses would have little-to-no access to high-caliber mathematical experts. Skilled mathematicians would be rarely utilized unless they had a high-profile position or several letters behind their name. And the two groups would have a difficult, if not impossible time being connected together, as would startups with established mathematicians or established businesses with novice mathematicians. Businesses like Mathesia not only stand out because they utilize the crowd for delight, but they wouldn’t exist without the crowd.

Being Bold in Crowdsourcing
Image source: Mathesia

Mathesia has three projects that epitomize crowdsourcing’s opportunities:

In one instance, an energy trading company wants to help maximize resources. The key is creating algorithms based on weather patterns as well as consumption statistics from customers worldwide. Instead of looking inward, the organization is opening up opportunities to outside parties. The project has a two month deadline for up to 15,000 euros to be awarded to the best submissions.

Second, another party wants to optimize airline ticket seat sales. There is a classic airline adage: the person next to you may have spent twice as much as you did for the same exact seat and experience, but unless you talk, you’d never know. The widely varying prices do have a pattern, but this project wants to make the mathematics even tighter. The biggest concern, it says, is the third-party online travel agencies (OTAs) offering deep discounts and, arguably, wielding more power than the airlines themselves. By creating a smarter algorithm, airlines could attract more travelers to buy directly from them. The deadline and reward will be announced soon.

Lastly, a recently completed project helped a major Italian hospital. The orthopedic organization needed to optimize the time in the operating room. The criteria was varied, including maximizing the billing to cost ratio, reducing the probability of or activity after planned closing time and using as much as possible of the allocated time during the day. Math would not only be crucial to success, but it would be hard to imagine any success without it. The hospital offered up to 2,000 euros for the preliminary work, with more budget available after a successful start. The end result was an 18% increase in the time that the operatng room is used.

The three projects all reflect the strengths of crowdsourcing. First, it is a rare opportunity for outsiders to build a reputation working with potentially powerful organizations. Second, it gives organizations fresh ideas outside of their culture since, by their very nature, businesses innovation get stagnant over time. Third, it is a reputational, if not a financially rewarding path, not based on degrees, social network or status, but on actual results.

Mathesia is a natural fit for the first-annual BOLD Awardshappening April 5th in Venice, Italy, and the platform is sponsoring the Boldest Crowdsourced Online Platform category.  Here is a link to the final five nominees in this category.

Crowdsourcing is a great equalizer, diversifying the people able to contribute their ideas. It also is a great necessity. We have the opportunity to make our future brighter than ever by leveraging today’s technology, networking and accessibility tools to broaden our landscape. The term “crowdsourcing” may be mainstream today, but we remain far from harnessing its true power.

Everyone attending the BOLD Awards ceremony on the evening of April 5, at the H-FARM campus, will gain an insight to the unique workings of this special and stimulating startup accelerator set in beautiful countryside just outside of Venice, Italy. Attendees at the black-tie gala dinner will include the BOLD Awards winners, category sponsors who will be presenting awards, the H-FARM and CSW event teams, along with some of our corporate supporters and investors. Some tickets remain available if you’d like to apply to spend an evening in the company of this select group of BOLDEST people and organizations who are spearheading breakthroughs in the crowdsourcing and many other sectors.

Main image credit: adapted from an original image by James Cridland

Why H-FARM is Hosting the BOLD Awards Ceremony

Why H-FARM is Hosting the BOLD Awards Ceremony

Education has been a stimulating topic at a number of Crowdsourcing Week conferences and summits around the world. The pace of change, the disruption of business and social conventions enabled by new technology, has accelerated beyond the point where traditional educators can agree and implement relevant courses of study. By the time a topic can be added to a curriculum it is likely to be out of date. Thankfully, technology itself, in the hands of new educators, is providing new solutions on how to teach new technology.

We are delighted the gala dinner award ceremony of the inaugural BOLD Awards will take place at H-FARM’s advanced technology education campus set in the Italian countryside just outside Venice. It is a farm like no other, where tech talent is cultivated in the way that agricultural farms sow, nurture and bring to market traditional crops.

H-FARM Vice Chairman Maurizio Rossi

It began in 2005 when it was co-founded by Maurizio Rossi (H-FARM’s Vice Chairman, and Chairperson of the BOLD Awards international judging panel) and Riccardo Donadon (H-FARM Chairman and CEO). Maurizio graduated as a ship’s captain, has been vice chairman of an offshore powerboat racing organisation, and founded a division of his family’s business focused on action-sport apparel and equipment. After LVMH bought part of the business he spent ayear in the yachting industry before he and Riccardo launched H-FARM.

Riccardo has always been passionate about the Internet and set up a digital agency called Etree that he sold in the early 2000s for $14.5 million. A year later he bought the H-FARM site. H stands for Human: he wanted to create something that put humans at its core. 

There are three core parts of H-FARM’s business model.

Investments. As a corporate accelerator, H-FARM has invested €25M to support the development of 105 early-stage innovative companies. This is achieved through vertical programmes within industry sectors and in collaboration with corporate partners. An example is the Wellness Accelerator Program in partnership with Technogym.

Consultancy. Over 100 of the most important international brands have gone to H-FARM for guidance on taking advantage of the opportunities made possible by digital transformation. Customers include Diesel, Luxottica and Porsche Italy.

Education. More than 1,000 students have been taken through an international and digital didactic path.

The H-FARM campus is currently undergoing an expansion that will grow its facilities from 14,000 sqm of buildings with a 20-hectare park to 42,000 sqm of buildings distributed over 51 hectares of land close to Venice. And they are no strangers to hosting top quality events.

Kinnernet Venice, staged at H-FARM in August 2017, was the Italian edition of a unique 3-day event created in 2003 by Yossi Vardi, a leading Israeli innovator. When most people consider whether to attend a conference-type event, their first questions usually include, “What are the topics and who are the speakers?” Though when new technologies, such as those that H-FARM encourage and support, are still in their earliest stages, few people understand their potential or identify their relevance. A conference organiser using the regular format thus lacks the standard parameters of a shortlist of both recognised experts and acknowledged discussion points to create an agenda.

Kinnernet is thus structured as an “unconference”. New ideas are often best discovered and explored in person, as opposed to searching the internet, and novel concepts arise through connecting a wide group of curious, motivated and creative individuals. Kinnernet Venice invited 250 participants who were provided with timetables of places to be and the time to be there, and were encouraged to interact and just see what outcomes were achieved. They each made their contribution by collaborating in the different planned sessions, being involved in the group discussions, interactions and general creativity aired among the attendees. Watching the event video helps to understand the concept.

Staying in tents, enjoying cookery classes, wine tasting sessions, canoeing, horse riding, virtual reality experiences and boat trips all helped to relax the invited participants‘ conscious minds, break down barriers, and stimulate inner creativity to produce more meaningful outcomes and make it a more rewarding experience.

H-FARM thus provides a natural setting for the BOLD Awards ceremony on the evening of April 5, and attendees will gain an insight to the unique workings of this special and stimulating place set in beautiful countryside just outside of Venice. Attendees at the black-tie gala dinner will include the award winners, category sponsors who will be presenting awards, the H-FARM and CSW event teams, alongside some of our corporate supporters and investors. There are some tickets available if you’d like to apply to spend an evening in the company of this very select group of people and organizations who are spearheading breakthroughs in the crowdsourcing and many other sectors.