Creative InvestmentResearch, Inc.                             Crowdfunding and B2B Firms                                  ...
The JOBS ActMultiple Small Business Capital Access Channels     Allows existing and newly created companies (emerging grow...
Disruptive Impact                    90                    80                                                             ...
Issues in the detailsEmerging Growth Companies (EGCs):       Firms with less than $1 billion in revenues       25 to 26 mi...
Reporting and other requirementsCan safely ignore most of the more complicatedreporting requirements:1.     Price of secur...
What most firms will report:                                                                                  Simple descr...
Crowdfunding PlatformsSince Emerging Growth Companies (EGC) are  raising capital over the internet, they must be  free to ...
Investor Limits/Rules  Less than                     Can invest: the $100,000 in                   greater of $2,000 inves...
Pebble Watch Screen Shot Confidential. Not for reproduction or distribution.Copyright, Creative Investment Research, Inc. ...
Funded Projects on Kickstarter20,000                                                                                      ...
B2B FirmsHow many B2B firms need capital?All of them. CONSIDER CREATING A PLATFORM TOFINANCE CUSTOMERS!What should you be ...
The Pitch      Create a ten (not including the cover) page slide PowerPoint    presentation that describes your business. ...
For further information    Creative Investment Research, Inc.        William Michael Cunningham The JOBS Act: Crowdfunding...
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Jobs act webinar updated jan2013

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by: William Michael Cunningham, Minorityfinance.com

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Jobs act webinar updated jan2013

  1. 1. Creative InvestmentResearch, Inc. Crowdfunding and B2B Firms It’s time… Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013
  2. 2. The JOBS ActMultiple Small Business Capital Access Channels Allows existing and newly created companies (emerging growth companies - EGCs) and small firms to raise up to $1 million ($1,000,000) in equity by selling shares. Allows medium and larger firms issue up to $50 million of securities per year “in offerings that are free from the resale and investor restrictions associated with privately placed securities.”Women and Minority-owned firms: Title VII requires the SEC to reach out to women and minority firms. Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013 2
  3. 3. Disruptive Impact 90 80 Financing for the most difficult to finance small businesses. 70 60Investment Volume 50 40 Crowdfunding to financing businesses that could qualify for a business loan 30 20 10 Crowdfunding Disruptive Impact 0 1 2 3 4 5 6 Time Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013 3
  4. 4. Issues in the detailsEmerging Growth Companies (EGCs): Firms with less than $1 billion in revenues 25 to 26 million firmsWhat does this get you? The opportunity to raise up to $1 million online Exemption from filing certain financial, executive compensation and other dataIs that it? Yes. That’s all for you. Take what you can get and run with it. Platforms and brokers, however, get a great deal. Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013 4
  5. 5. Reporting and other requirementsCan safely ignore most of the more complicatedreporting requirements:1. Price of security easy to determine: THE MARKET WILL DO SO2. Will have one owner and no history3. Most owners won’t be looking to sellMost of the Crowdfunding Provisions are like thisMost of the burden is on the Funding Platforms, at thispoint, anyway….. Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013 5
  6. 6. What most firms will report: Simple description of the purpose and use of the proceeds.The name, legal status, physical address, The target offering amount, deadline and website address and regular updates regarding progress Simple description of the business and anticipated business plan One or two names of the current Simple offering price Share offering price owners Simplified description of financial condition, including, Simple (one or two person) ownership and capital structure. Simple income tax return and financial statements..certified by the principal executive officer Simple offering terms No risks relating to these factors None Simple or no exercise rights Names of one or two persons who own the firm None Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013 6
  7. 7. Crowdfunding PlatformsSince Emerging Growth Companies (EGC) are raising capital over the internet, they must be free to communicate (free from Securities laws)Funding platforms are websites created for the sale of EGC securities. They must: – Register with the SEC and FINRA – Provide risk and investor education materials – Ensure that investors understand risk – Manage crowdfunding process Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2012 7
  8. 8. Investor Limits/Rules Less than Can invest: the $100,000 in greater of $2,000 investor net or 5% of net worth income 10% of net income,More $100,000 up to a maximumin investor net aggregate amount of worth $100,000 Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013 8
  9. 9. Pebble Watch Screen Shot Confidential. Not for reproduction or distribution.Copyright, Creative Investment Research, Inc. 2013 9
  10. 10. Funded Projects on Kickstarter20,000 Funded18,000 Projects on16,000 Kickstarter by funding amount14,00012,00010,000 Less than $1k 8,000 $1 to $10k 6,000 $10k to 20k 4,000 $20k to $99k 2,000 $100k to $999k 0 Over $1 mil Less than $1k $1 to $10k $10k to 20k $20k to $99k $100k to $999k Over $1 mil Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013 10
  11. 11. B2B FirmsHow many B2B firms need capital?All of them. CONSIDER CREATING A PLATFORM TOFINANCE CUSTOMERS!What should you be doing now?Preparing.How?Prepare business plan(s)Get income tax return, audited statementsOutline/simplify ownership structure (if needed)Review every single crowdfunding website you canReview application processPrepare your draft pitchEnhance/enlarge social media/network Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013 11
  12. 12. The Pitch Create a ten (not including the cover) page slide PowerPoint presentation that describes your business. Use this to create and supplement your Crowdfunding website solicitation.1. Cover slide – information on your 6. Marketing – what is the market foreffort: address, etc your product or service?2. Summary – summarize what you 7. Sales – how will you sell yourpropose to do product or service?3. Team – describe who you are 8. Competition – who will youworking with, if anyone compete against?4. Problem – what problem does your 9. Milestones – what are yourbusiness address? progress points?5. Solution – describe your solution to 10. Money – how much money dothe problem. you need? What will you do with it? Confidential. Not for reproduction or distribution. Copyright, Creative Investment Research, Inc. 2013 12
  13. 13. For further information Creative Investment Research, Inc. William Michael Cunningham The JOBS Act: Crowdfunding for Small Businesses and Startups - http://www.amazon.com/The-JOBS-Act-Crowdfunding-Businesses/dp/143024755X info@creativeinvest.com 866-867-3795 202-455-0430 Confidential. Copyright, Creative Investment Research, Inc. 2013 13

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