John Stroppa’s Alternate Funding Strategies

On July 21, 2014, John and about a dozen persons meet in the classroom at HackerDojo. Starting promptly at 6pm, a few people were late. None-the-less, John pressed through giving his experience – drawn from his successes and exits in the video game industry in Vancouver, BC, Canada.

John outlined six (6) methods for capital besides bootstrapping or venture (or seed) capital, in short — without giving up equity.

    1. Strategic / Ecosystem or platform monopsony – in which a player needs a product or service by which they can continue to enhance their market position. An example is a search engine for walled gardens. A9, for example, started as a generic search engine, now it’s largest customer and investor is Amazon.
    2. Sponsored – sponsoring is a great to jump start a business. In this model another company or organization would pay to use your product for a demo or publicity event. For example, Coca-Cola might use your telepresence avatars for an international youth event.
    3. Factored – With this method, it does feel a bit like a pre-sale, but infact the money is fronted on expected sales. Also other terms are given, such as early exclusive sale or access to the product for a given period. An example would be a retailer that expects to sell other products with the early release of a game. As such, money fronted is drawn from the pre-sale until the money is “factored” back. You could also see it as a loan, payed back from sales.
    4. Philanthropic – An example of this is a large event being sponsored by a philanthropic organization that decides it needs some sort of unique service, such as an online game.
    5. OEM/White label – create a generic product for an industry. A good idea is doing want ads for electronic magazines, or monthlies that have turned to the web; such as trade magazines.
    6. Crowdfunding/Crowdsourcingkickstarter, indiegogo, fundable

Google: Crowdfunding

Crowdfunding.com lists – gofundme.com, kickstarter, indiegogo, youcaring.com, causes, giveforward, crowdrise, fundly, firstgiving, fundrazr

Forbes.com Top 10 Crowd funding websites kickerstarter, indiegogo, crowdfunder, rockethub, crowdrise, somolend, appbacker, invested.in, quirky (AngleList is not a crowdfunding website contrary to what the article implies.)

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One thought on “John Stroppa’s Alternate Funding Strategies

  1. Pingback: entrepreneur.com – Top 100 Crowdfunded things | Entrepreneur's Dogfood

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