Cordfunding Economic Development Strategiescrowdfunding. economic development strategies. for...
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CROWDFUNDING ECONOMIC DEVELOPMENT STRATEGIES FOR BUILDING VIBRANT BUSINESS AND COMMUNITIES
Transcript of Cordfunding Economic Development Strategiescrowdfunding. economic development strategies. for...
CROWDFUNDINGECONOMIC DEVELOPMENT STRATEGIES
FOR BUILDING VIBRANT BUSINESS AND COMMUNITIES
THE RISEOF THE CROWD INVESTMENT
CROWDFUNDING
DONATION AND REWARD-BASED
CROWDFUNDING
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Presenter
Presentation Notes
The Rise of the Crowd Donation and Reward-Based Crowdfunding You accept monetary "donations" with no consideration returned (other than recognition) or monetary "contributions" in exchange for some kind of incentive, recognition or promotional gift Example platforms include: Kickstarter Indiegogo GoFundMe Investment Crowdfunding You accept monetary "investments" in your company in exchange for some form of promise or expectation of a return on that investment Highly regulated -- it involves the offer and sale of securities
From many people instead of institutional money or a small group of people
By conducting a "general solicitation" or using advertising
Often (but not always) uses the internet and/or social media to attract and interface with investors
Any way to raise money:WHAT IS CROWDFUNDING?
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• Type equation here.
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CROWDFUNDING IS A $34 BILLION INDUSTRYTHAT IS GROWING EVERY YEAR
$2.7BN IN 2012
$6.1BNIN 2013
$16.2BNIN 2014
$34.4BN IN 2015
NOW: NOT TOPPED OUT YET
Source: Massolution Crowdfunding Report, 2015 5
Top 5 Crowdfunding States (2015)Where is North Carolina?
By Number of Offerings By Capital Raised
California California
New York New York
Florida Florida
Texas Nevada
Illinois Colorado
Economic Development GoalNorth Carolina Becomes a Top 5
Crowdfunding State
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TXNYC
Boston
FL CA
NC
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WilmingtonAsheville
Greenville
RaleighNew Bern
NC
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NC's United
Message to the Crowd
Crowdfunding Ecosystem
Puzzle
Local Lead VC Investors
Issuer Direct
Software
Reasonable Deal
Terms
Reasonable Regulations
National Platforms
Local Platforms
Marketing Firms
Legal Advice
$Smart Angels
State-Wide
Advocacy and
Support
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EQUITY
An ownership interest
DEBT
Convertible or Non-Convertible
REVENUE SHAREShort-term Royalty Stream or Profits Interest
LOTS OF WAYS TO MIX THIS
HYBRID
Special Agreement for Future Equity (SAFE)
COMMON TYPES OF "SECURITIES"11
Start-up to Exit Financing Model and Related Securities Laws
Seed $100K to $250 Rewards or Local Public Offering (LPO)
$250K to $1 M State Crowdfunding or SEC Regulation CF
$1 M to $2 M State Crowdfunding or SEC Rule 506(c)
$2 Million to $10 Million SEC Rule 506(c)
$10 M to $20 M Regulation A Tier 1 (MezzRound)
$10M to $50M Regulation A Tier 2 (MezzRound or Moni IPO)
No $ Limit Rule 506(c)
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SECURITIES REGULATION101
STATES ALSO REGULATE
SECURITIES OFFERING
Similar to federal structure
SELLING ACTIVITIES ARE
FEDERALLY REGULATED
Initial sale and resales; broker-dealer activities
LIABILITY ATTACHES FOR FRAUDULENT ACTIVITY
Including material misstatements and
omissions
FIND AN EXEMPTION OR REGISTER THE OFFERING
Each exemption has different rules to follow
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Give Us Your Business Card We Will Send You an eBook
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BENJI TAYLOR JONESBuilding Vibrant Businesses and Communities Through Crowdfunding and other Capital Raising Strategies
P: 919.277.9142M: [email protected]
THIS IS WHAT WE DO
JIM F. VERDONIKBuilding Vibrant Businesses and Communities Through
Crowdfunding and other Capital Raising Strategies
P: 919.277.9188M: 919.616.3225
WE WROTE THE BOOK ON THIS
Let's Start a Conversation about Building Your
Community's Businesses and Economy
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