LIZ: OKAY.
WE ARE WATCHING THE MARKETS
RIGHT NOW.
THE S&P DOWN JUST TEN.
EVERYBODY’S GOT A BUSINESS IDEA
IN THEM, RIGHT?
THANKS TO CROWD FUNDING, MONEY
COMES FLOWING IN BUT WHILE IT’S
A BOON FOR STARTUPS, IT’S
BECOMING INCREASINGLY DIFFICULT
TO TRACK AND TRACE SOMETIMES
MISUSED MONEY.
CLASSIC EXAMPLE, MAKING A LOT OF
NEWS ON THE EAST COAST, A NEW
JERSEY COUPLE IN A HARSH
SPOTLIGHT AFTER STARTING A GO
FUND ME CAMPAIGN FOR A GOOD
SAMARITAN HOMELESS VETERAN WHO
GAVE THEM MONEY FOR GAS WHEN
THEY WERE STRANDED WITHOUT THEIR
WALLETS IN PHILADELPHIA.
THEY RAISED $400,000 BUT ARE NOW
BEING SUED FOR MISMANAGING MUCH
OF THE DONATED CASH.
WHILE GO FUND ME NOW SAYS THEY
WILL FIND A WAY TO GET THE
HOMELESS VET ALL OF THE MONEY
THAT’S MISSING, THIS COULD PUT A
CHARITIES AND STARTUPS.
ENTER PLEDGE CAMP, A NEXT
GENERATION CROWD FUNDING
PLATFORM BUILT ON BLOCK CHAIN
TECHNOLOGY THAT PROMISES TO
SOLVE ISSUES OF TRUST AND CROWD
FUNDING MISMANAGEMENT.
HERE IN A FOX BUSINESS
EXCLUSIVE, WE WELCOME ITS
FOUNDER AND PRESIDENT, EDDIE LEE
ALONG WITH PLEDGE CAMP ADVISER,
RANDY ZUCKERBERG.
WELCOME TO YOU BOTH.
EDDIE, I WANT TO START WITH YOU.
BOY, THAT REALLY SMACKED DOWN
TRUST, THAT STORY.
THERE ARE A COUPLE OF THEM OUT
THERE, WHETHER IT’S CROWD
FUNDING, KICK STARTER, LIKE WHAT
HAPPENED TO MY MONEY.
HOW ARE YOU GUYS DIFFERENT AT
PLEDGE CAMP?
WHAT DO YOU DO THAT’S DIFFERENT?
>> SO WE CONSIDER PLEDGE CAMP
THE NEXT GENERATION OF CROWD
FUNDING PLATFORM.
WE HAD CROWD FUNDING 1.0, IT’S
BEEN REALLY AN AMAZING VEHICLE,
PEOPLE CAN FUND THEIR BUSINESSES
AND PRODUCTS.
LIKE YOU MENTIONED, THERE’S AN
ACCOUNTABILITY PROBLEM.
IT’S JUST NOT BUILT INTO THE
MODEL.
STUDIES HAVE SHOWN THAT UP TO
85% OF CAMPAIGNS, 85% WILL DELAY
OR NOT DELIVER ANYTHING AT ALL.
SO WHAT WE DO IS WE TAKE THE
BEST ASPECTS OF BLOCK CHAIN AND
TAKE THAT TO CROWD FUNDING AND
CROWD FUNDING 2.0.
LIZ: FOR PEOPLE THAT NEVER HEARD
OF BLOCK CHAINS, I KNOW IT’S AN
ELECTRONIC DIGITAL LEDGER.
ARE YOU SAYING WHEN IT FINALLY
COMES TO THE LAUNCH OF THE
COMPANY AND THE COMPANY GOES
BELLYUP, WHAT IS THE RECOURSE
THERE?
>> THERE ARE SEVERAL BENEFITS TO
BLOCK CHAIN TECHNOLOGY.
AS YOU MENTIONED, IT IS A LEDGER
WHICH ALLOWS YOU TO HAVE MORE
TRANSPARENCY AND MORE SECURITY
ABOUT WHO YOU ARE SENDING MONEY
TO, YOU CAN KNOW MORE ABOUT
THEM.
LIZ: WHAT THEY ARE USING THE
MONEY FOR.
>> EXACTLY.
YOU CAN SEE WHERE THE MONEY IS
GOING.
LIZ: WE DON’T WANT IT ON THE
LITTLE GAMES, THE GRANOLA BARS
FOR WORKERS.
YOU WANT TO SEE YOUR MONEY BEING
SPENT, RIGHT?
>> RIGHT.
EXACTLY.
THE OTHER COOL THING BLOCK CHAIN
LETS YOU DO IS SOMETHING CALLED
SMART CONTRACTS.
WHAT SMART CONTRACTS ARE, THEY
ARE SOFTWARE PROGRAMS THAT ALLOW
TWO PEOPLE ON THE INTERNET TO
KNOW FOR SURE WHAT THE TERMS OF
THAT THEY WILL BE ENFORCED
WITHOUT RELYING ON A TEAM OF
LAWYERS OR A THIRD PARTY.
THIS ALLOWS PEOPLE TO CREATE
TRUST OVER THE INTERNET.
>> JUST LIKE YOU WOULDN’T BUY A
HOUSE BY JUST GIVING ALL THE
CASH UP FRONT, YOU HOLD SOME IN
ESCROW SO THAT THE DEVELOPER
ACTUALLY BUILDS THE HOUSE FOR
YOU, THAT’S WHAT THEY’RE DOING
THERE.
YOU GET A LITTLE BIT UP FRONT
BUT THE MONEY DOESN’T GET
RELEASED UNTIL THE CREATOR IS
ACTUALLY MAKING PROGRESS ON THE
PROJECT.
SO YOU HAVE TRUST.
LIZ: OKAY.
I LOOK AT YOU, YOU ARE AN
AUTHOR, YOU ARE A MOTHER, YOU
ARE MARK ZUCKERBERG’S SISTER.
YOU CREATED FACEBOOK LIVE ON THE
FACEBOOK PLATFORM.
YOU COULD PICK ANY COMPANY TO BE
AN ADVISER.
WHY THIS ONE?
>> GOSH, THERE ARE SO MANY
REASONS.
FIRST OF ALL, I HAVE BACKED
EDDIE AND JAY BEFORE IN OTHER
INITIATIVES.
THEY ARE JUST INCREDIBLE
ENTREPRENEURS BUT ALSO FOR ME, I
HAVE BEEN VERY INTERESTED IN THE
CRYPTO AND BLOCK CHAIN SPACE FOR
AWHILE.
I THINK IT’S A SPACE THAT MORE
WOMEN NEED TO GET INVOLVED IN,
QUITE FRANKLY.
BUT I DIDN’T WANT TO GET CAUGHT
UP IN THE HYPE.
THERE’S BEEN A LOT OF HYPE IN
THIS SPACE.
FOR ME, I’M INTERESTED IN
PRACTICAL APPLICATIONS OF BLOCK
CHAIN IN OUR LIVES.
LIZ: THIS IS ONE OF THEM.
>> THIS IS ONE OF THEM.
MY PASSIONS IN LIFE ARE
SUPPORTING THE ARTS AND GIVING
MORE WOMEN AND UNDERREPRESENTED
ENTREPRENEURS A CHANCE TO HAVE
THEIR PROJECTS BACKED.
WITH SOMETHING LIKE THIS, WITH
PLEDGE CAMP, IT DOESN’T MATTER
WHERE YOU LIVE, WHAT ACCESS TO
FINANCING YOU HAVE, IF YOU CAN’T
GET A VC TO WRITE YOU A CHECK,
SUDDENLY YOU HAVE A PLATFORM.
LIZ: IT’S KIND OF IRONIC, YOU
RAISED A LOT OF MONEY FOR WHAT
COULD BE A KICKSTARTER, RIGHT?
FOR WHAT COULD BE A KILLER OF
THAT, AND YOU DID IT THROUGH
KICKSTARTER.
>> YEAH.
I MEAN, WE HAVE DONE KICKSTARTER
IN THE PAST.
WE HAVE RAISED OVER $2 MILLION
IN OUR EXPERIENCE WITH CROWD
FUNDING AND THAT’S REALLY SHOWN
US FIRSTHAND OBVIOUSLY THE
BENEFITS BUT ALSO THE PROBLEMS.
THESE PAINS WE ARE FEELING,
THAT’S WHAT WE ARE TRYING TO
SOLVE NOW FOR OTHER PEOPLE.
LIZ: CAN I JUST SAY, WHEN YOU
GIVE MONEY TO A STARTUP, IT’S A
RISK.
VENTURE CAPITALISTS KNOW THIS
ALL TOO WELL.
ARE YOU BEING A LITTLE
UNINITIATED SAYING I BELIEVE IN
THIS CRAZY PROJECT, THEN IT GOES
UNDER?
>> WHEN YOU OPENED UP THIS
SEGMENT YOU LED WITH EXACTLY
WHAT HAPPENS.
THERE ARE SO MANY AMAZING
PROJECTS OUT THERE, BUT YOU GIVE
MONEY TO THE WRONG ONE, WHERE
SOMEONE MISUSES IT AND SUDDENLY,
YOU NEVER WANT TO SUPPORT A
PROJECT EVER AGAIN.
YOU SOUR ON THE ENTIRE SYSTEM.
THAT’S WHAT I REALLY LOVE ABOUT
PLEDGECAMP IS THE MONEY DOESN’T
GET RELEASED WITH THESE SMART
CONTRACTS, YOU FEEL TRUST AND IT
PROTECTS THE CREATOR AND THE
BACKER.
LIZ: HERE IN A FOX BUSINESS
EXCLUSIVE, RANDI ZUCKERBERG AND
EDDIE LEE.
PLEDGECAMP IS UP AND RUNNING?
>> NOT UP AND RUNNING.
LIZ: WHEN?
I NEED THE WHETHER.
>> IT WILL BE UP AND RUNNING
SUMMER 2019.
WE PARTNERED WITH AN AMAZING
DESIGN AGENCY THAT MADE SOME
PROJECTS LIKE COIN BASE AND THEY
WILL HELP US BUILD AND LAUNCH
NEXT YEAR.
LIZ: HOW CAN PEOPLE READ THE
WHITE PAPER?
>> PLEDGECAMP.COM.
DOWNLOAD IT THERE.
LIZ: VERY COOL.