1.
Equity Crowdfunding: Is It a
Good Funding Option for Your
Startup?
Geri Stengel, President / Ventureneer 8.12.2015

2.
EQUITY CROWDFUNDING: IS IT A GOOD FUNDING
OPTION FOR YOUR STARTUP?
● What and why
● Just the facts, ma’am
● Give it to me straight
● What’s it take to succeed
● Both sides of the equation
● Resources
2

3.
What Is Equity Crowdfunding?
Regulation D of Title II of the JOBS Act
● 506(b)
● 506 (c)
● Title III, still to come

4.
Why Equity Crowdfunding?
● Centralizes
● Streamlines
● Simplifies
● Shortens the fundraising process

5.
JUST THE FACTS, MA’AM
5

6.
Equity Crowdfunding Is In Its Infancy
Venture Capital Angel Investments
$48 Billion
Real world $24 Billion
Crowdfunding $.5 Billion
Source: MoneyTree, Center for Venture Research and Crowdnetic for 2014

7.
Success Rate Among Entrepreneurs Seeking Angel Investments
Real World
19%
Crowdfunding
24%

8.
Top 10 Cities for Equity Crowdfunding

9.
GIVE IT TO ME STRAIGHT
9

10.
Misconceptions Cloud Equity Crowdfunding Reality
● Verifying accreditation
● Managing investors is complicated
● Financial reporting
● Expensive
● Venture Capitalists diss crowdfunding
● If you build it, they will come
● Social media outreach will make your
campaign go viral and the rest, as they
say is history
Photo credit: Flickr, Faungg's Photos, Cloudy Mountain

11.
The Ugly of Crowdfunding
Photo Credit: Flickr, Tambako The Jaguar, «I'm ugly, and?»

12.
Equity Crowdfunding: To Carpe Diem or Not
Photo credit: Flickr, Hamish Darby, kasplosh
● A large market
● Solving a major pain-point
● Defensible competitive
advantage
● An exit
● A great team

13.
Fundraising: No One Size Fits All
● 506(b)
● 506(c)
● Offline
● Rewards
Photo credit: Flickr, David Goehring, Emptily Nested

14.
Choosing an Equity Crowdfunding Platform
● Compensation
● Deal structure
● Due diligence
● Exclusivity
● Minimums and maximums
● Products
● Regulation compliance
● Regulatory Profile
● Self service vs. full service
● Stage of company
● Syndicates
● Tools
● Track record
● Value added

15.
Success Stories
Wonder Technologies
Crowdfunder
Committed: $800,000
Digitzs
Crowdfunder
Committed: $2 million
ONEVEST
Onevest
Committed: $2 million
Le Grand Courtage
CircleUp
Raised: $400,000
Good Clean Love
CircleUp
Raised: $400,000
Smarty Pants Vitamins
CircleUp
Raised in 2 rounds:
$4.7 million

16.
The Benefits of Leading With a Rewards-Based Crowdfunding
● Debt and Equity free
● Market research
● Social proof
● Validation
● Customer engagement
● Marketing

17.
Use Rewards-Based Crowdfunding as a Stepping Stone
Other Company Machine
Kickstarter
Goal: $50,000
Raised: $312,000
VROU
Plum Alley
Goal: $30,000
Raised: $32,000
Thinx
Kickstarter
Goal: $50,000
Raised: $65,000
Indiegogo
Goal: $10,000
Raised: $19,000
Website
$25,000
TOTAL: $110,000
Real Food Blends
Indiegogo
Goal: $10,000
Raised: $16,000
Bumbleroot
Indiegogo
Goal: $9,000
Raised: $10,000

18.
WHAT’S IT TAKE TO SUCCEED
18

19.
Equity Crowdfunding Pointers
● Build your network before you need it
● Get organized
● Segment network, target appropriately
● Communicate clearly
● Focus on solving a pain point
● Highlight the skills of the team
● Make a compelling video
● Emphasize traction: customers,
partners, media mentions, etc.
● Show momentum
● Reach out often using different
● Make the ask and ignore rejection
● Attend to details
Photo credit: Flickr,
Anonymous Account, Where

20.
Skills Required
● Organized, diligent
● Marketer
● Story teller
● Clear communicator
● Realistic projections
● Aligns words with actions
● Frank when mistakes happen
● Good follow up
Photo credit: Flickr, Bob Bob, Getting airtime in the women's
boarder cross at The Brits 2010 at Laax, Switzerland

21.
BOTH SIDES OF THE EQUATION
21

22.
What’s in It for the Investor?
● Make a profit
● Apply their own skills and
experiences
● Give back
● Participate actively in investing
● Join boards of directors,
especially true for women
● Finding like-minded people to
invest in – values driven
Photo credit: Flickr, Simon Cunningham, Return on Investment

23.
Why Angels Like Crowdfunding Platforms
● Increased deal flow
● Curated deals
● Centralized/convenient
● Transparency
● Streamlines process
● Saves time
● Diversifies portfolio
● Learn from others

24.
RESOURCES
24

25.
Resources
● Stand Out In the Crowd: How Women (and Men) Benefit From Equity
Crowdfunding
● All Geri Stengel’s articles on crowdfinance
● 6 Common Misconceptions About Equity Crowdfunding
● How to Ensure a Successful Crowdfunding Campaign
● 5 Secrets to a Successful Equity Crowdfunding Campaign
● Study Reveals Secrets to a Successful Crowdfunding Campaign
● Going For it through Crowdfunding
● Women vs. Men: Who’s Better at Crowdfunding?
● How Crowdfunding Is Closing The Funding Gap for Female Founders

26.
Questions

27.
STAND OUT IN THE CROWD:
How Women (and Men) Benefit From Equity
Crowdfunding
THANK
YOU
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