CNBC Gets Into Crowd-Funding Business With ‘Crowd Rules’

The cable news network's latest unscripted series relies on the studio audience to crown a winner.

The cable news network’s latest unscripted series relies on the studio audience to crown a winner.

The New York-based series is the latest unscripted effort, debuting at 9 p.m. May 14, for the financial news network under the “CNBC Prime” umbrella. In each episode, three small businesses compete in front of an audience of 100 who vote to decide who wins the $50,000 grand prize. Jewelry designer Kendra Scott and NY1 anchor Pat Kiernan, along with an expert provide advice and help the studio audience — made up of MBA students, consumers and business owners — vote on which company takes home the money.
“This idea is an intersection of two things that were going on in the last year. … I was trying to figure a way how I could bring crowd-funding to a business reality show on television,” executive producer Michael Davies told reporters Monday at NBCUniversal summer press day. “And secondly in researching another project, I stumbled across facts to do with small businesses in America: 54 percent of all GDP is generated by small family-owned businesses. Since the 1970s they’ve been responsible for 66 percent of all employment.”
Marrying those two factors seemed like potential for a new show that didn’t exist. “There were TV shows with big businesses, there were TV shows that focused on commercial or people with new ideas for products or businesses,” he said. “There were no TV shows for [the existing individually-owned businesses].”
While episodes won’t specifically feature companies with similar areas, like three ice-cream businesses for instance, Davies noted that there are themes for each hour. For example, one installment features “legacy” companies, which are in the middle of transitioning into new hands.
Crowd Rules panelists emphasized the differences of their CNBC offering from that of ABC’s Shark Tank, which focuses on the entrepreneur and whose bickering “sharks” are often the entertainment. Depending on who you believe, panelists Kiernan and Scott “agree 80 percent of the time” or “75 percent.”
“All three businesses have existing businesses that work that we have reason to believe that they would thrive,” Kiernan said. “We’re not picking the worst so that we know what the outcome would be.”
Why the $50,000 prize? Davies revealed that at one point the amount was actually “much larger.” What he found, however, was that $50,000 was already enough for businesses to utilize for marketing or to put in elsewhere. (Companies have about 30 seconds in a final ditch effort to persuade panelists and the audience, who either vote with their head or their heart, what they’re going to do with the money.)
Jim Ackerman, senior vp primetime alternative programming at CNBC, noted that the $50,000 prizes will not be given to the winners until after the episodes air, but Ackerman assured that they would receive the money.
Unlike Shark Tank, which relies on the “sharks” to put in money into ideas they believe they can groom into successful products to be consumed by the public, Scott and Kiernan don’t put in equity and company owners don’t feel like they’re signing away their life.
“It’s the right time in the economic cycle because we’re not in the depths of a recession,” Kiernan said. “This is the time when the economy is on the upswing and I think the program is in the right side of that track.”
Twitter: @insidethetube

Source: The Hollywood Reporter – Philiana Ng


FortuneUncensored Social Network Gab Raises $1 Million in Crowdfunding CampaignFortuneA crowdfunding campaign for Gab, a Twitter-like social network that touts its commitment to freedom of speech, surpassed $1 million yesterday. The company claims it is politically neutral and committ [...]

U.S. News & World ReportNo Cash for Hate, Say Mainstream Crowdfunding FirmsU.S. News & World ReportThe block on mainstream crowdfunding is just the latest blow to far-right activists operating online. In the last 24 hours, neo-Nazi website the Daily Stormer had its domain regi [...]

Baltimore SunHarford still opposes crowdfunding sites for school donationsBaltimore SunRaising money through online crowdfunding sites is an ideal way for teachers to find the funds to purchase classroom materials and should be restored, the head of the Harford County teachers' u [...]

FortuneDreamHost Sets Up Crowdfunding Page to Aid Trump Government FightFortuneThe Los Angeles-based web host DreamHost, which is fighting the Department of Justice over its attempt to seize records of visitors to an anti-Donald Trump website, has launched a crowdfunding campaign to a [...]

DualShockersBounty Battle Rolls out the White Carpet with Successful Crowdfunding CampaignDualShockersWhen we last checked in with the indie-obsessed fighting game, Bounty Battle, it was halfway through its $30,000 crowdfunding goal. Now with 3 days left to go, it's surpassed thi [...]

Crain's Cleveland Business'Smaller' gifts can go long way for Clinic's crowdfunding platformCrain's Cleveland BusinessFor an institution accustomed to securing multimillion-dollar donations, Cleveland Clinic's latest fundraising effort has some relatively [...]

GeekZing Smart Light Passes Crowdfunding Goal With Flying Colors ...GeekAt age 31, I still prefer to keep a light on in the hallway, illuminating my way to the bathroom in the middle of the night. (God forbid I step on the creeping cat—or ...and more » [...]

Business.comYou Oversold Your Crowdfunding Campaign – Now What?Business.comIf you've oversold, there's no way to go back in time and prevent it. Your next step should be to streamline what you can control. Crowdfunding can be an unpredictable, exciting experience. But reachi [...]

LITTLE GUIDANCE FROM IRS ON TAXING CROWDFUNDING CONTRIBUTIONSBloomberg BNAWhether it's a musician raising money to produce an album, an inventor with a great idea, or a family in distress that needs help, crowdfunding through platforms such as Indiegogo and Kickstarter has become [...]

ForbesWhat Works In Equity Crowdfunding -- Insights From ResearchForbesAs we have recently celebrated the fourth anniversary of the signing of the JOBS Act into law, it is a good time to take stock of the effect that the legislature had on equity crowdfunding in the United States. It [...]

CFB Finance


  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |