Agenda About Me Entrepreneurship RockThePost Crowdfunding Equity Based Crowdfunding & JOBS Act Questions
Who am I? Alejandro Cremades Born in Spain. Law Degree. Masters on International Business & Trade Law International Business Law at King & Spalding Chevron vs. Ecuador - $113 billion. CEO/ Founder of Rock The Post
How entrepreneurs are born. Idea Team Market Product
Where do ideas come from? Most important ideas take time to evolve and spend a long time dormant in the background. Good ideas need time to incubate. Sometimes you have ½ of the idea. It is important to share with other people and to borrow other people’s thoughts and combine them. Creativity and innovation happens thanks to the so many ways in which humans can connect nowadays.
Assembling the A+ Team Average people hire average employees. A+ people hire A+ people. Find these rock stars within your network. People you don’t know may be found via Linkedin, Co- Founders Lab, or Meetup events. Retain talent by giving them a piece of the pie. It is better to have 10% of something valuable than 100% of nothing. Create the best working environment.
Market Research Avoid thinking you are the first to market. There are always similar products. Investigate what potential competitors are doing and how to do it better. Figure out how to monetize. Investors want to know this. Gather demographic and economic data.
Product Avoid outsourcing the core parts of your business. Instead partner with someone who is an expert. Gather early testers of your product. Measure and study how they react towards it. Launch a store, something simple. Build it from there to get to the mall you envision. Get a grasp on marketing strategies. Think about funding. A lot.
First Critical Steps Buy the domain name of your business and get the social media pages before anyone else. Register your mark with the USPTO. Find a great lawyer with experience in your field.
Mistakes Keeping your idea secret. Not launching until having the perfect product. Not having a complete business plan. Not living and breathing your project. Raising more money than what you need. Hiring average people.
Tips Solve a critical need Simplify as much as possible your product Listen to your costumers. Don’t be afraid to iterate your product until you get it right. Spread the word as much as you can. Follow your passion.
Why Rock The Post Was Born Problem Entrepreneurs had a very hard time finding financing. In 2009, U.S. banks posted the sharpest decline in private lending since 1942. 98% of the business plans rejected by VC’s and Angel Investors.
Rock The Post’s Solutions Funding innovation = Evolution. Platform taking funding from Wall Street To Main Street. Equal opportunities in the world of business. Community involvement. Financing early stage companies and entrepreneurs. Contributing to job creation (small business created 65% of the net new jobs in the past 17 years).
Rock The Post = CrowdfundingDEFINITION:Crowdfunding is essentially a tool that gives entrepreneurs the opportunityto attract a pool of people via social media or shared interests in order tocontribute to a funding target that has been previously establishedby the entrepreneur.
Why Crowdfund? (The Benefits) Provides access to capital Establish proof of concept It hedges risk - Presell your product Test current business plan Analyze your product’s market demand Great marketing tool - Grow your audience Gather insight for improving your product Determine the best price point
Check List for Creating a Project Video Monetary Goal and Purpose Complete Project Time Effort
Crowdfunding Platform Comparison Kickstarter Indiegogo Rock The Post Company Focus Product focus Broad PurposeFunding All or nothing Flexible All or nothing Mass consumer Fund my life Entrepreneurs at Area products projects early stageCustomer Limited Limited Excellent Service
MisconceptionsSolely Launching aCampaign Will Bring in the Money
Misconceptions NOT LIKELY Leverage your inner networks!
MisconceptionsBy Directing People toYour Project, They Will Pledge
Misconceptions NOT LIKELYBe bold and clear about your message!
Misconceptions Crowdfunding Campaigns are Effortless
Misconceptions NOT TRUE Requires time and energy!
Basic Crowdfunding Campaign Process1. Plan ahead for campaign i. Distribution lists ii. Set fundraising goal & campaign length iii. Target media outlets
Process2. Create the crowdfunding campaign i. Create an epic story ii. Have enticing reward iii. Identify your target audience
Process3. Once the campaign is running i. Spread The Word ii. Project updates
Manage Expectations 1-2 weeks to complete a post 25-40% of funds from 1st, 2nd, and 3rd degree connections. Stay active throughout campaign!
JOBS Act In the spring of 2012, President Obama passed the JOBS Act, short for Jumpstart Our Our Business. Possibility for non-accredited investors to invest in private offerings. The US Securities Exchange Commission (SEC) has been instructed by Congress to issue the regulations covering this space on or before January 2013. The Self Regulatory Organization (SRO) is established. Possibly FINRA. Equity crowdfunding becomes possible being able to be the first investor on the next Facebook, Twitter, or Dropbox.
Defining accredited investors Net worth greater than $1 million. The primary residence is not counted as an asset in the net worth calculation. A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 Accredited investors represent only 1% of the U.S. population.
JOBS ACT - Title III Requirements for issuers (project creators) Registration and incorporation documents. Name of directors, officer and stockholders. Description of the business. Prior year tax returns. Financial statements. Intended use of proceeds, target amount and deadline. Share price. Description of ownership. Outstanding securities of the company.
ConclusionCrowdfunding is a great option for early stage companies andentrepreneurs trying to make theirdreams become a reality to obtain funding and to gain exposure .