An overview of crowdfunding, the JOBS act, Title II and Title III. What this latest legislation means, and how small businesses can use it to raise capital.
The State of Real Estate Crowdfunding - April 2018Daniel Fetner
Real Estate Crowdfunding is democratizing access to the CRE asset class for investors, and is helping developers find creative ways to finance deals. In the attached landscape I analyzed 22 crowdfunding platforms and bucketed them into three distinct groups. In my rough estimation, here are a few statistics:
• >$7B of capital invested by Accredited Investors into Real Estate deals via these platforms
• >20,000 transactions done via these platforms
• >$1B of Venture Capital invested into these startups
Page 2 of the landscape discusses my commentary and industry trends. Please don’t hesitate to reach out with questions!
Cisneros: “The Willingness, desire and drive are here”Adriana Cisneros
The Miami Herald highlights the advent of entrepreneurship in Miami.
“The willingness, desire and drive are here,” said Adriana Cisneros, CEO of the Cisneros Group and co-chair of Endeavor Miami. “VC and angel investors are entering the scene every day. It’s only a matter of time until we see some major inroads in this regard. Raising the awareness will be our best ally.”
October, 2014
This document provides an overview of equity crowdfunding in Canada. It discusses the two main regulatory models that have been proposed: the integrated crowdfunding model and the start-up crowdfunding model. Key differences between the models include offering size limits, disclosure requirements, and registration requirements for funding portals. Having two different models adopted across provinces could create a bifurcated crowdfunding regime and limit its success. The document also outlines some of the requirements under each model currently and issues still around equity crowdfunding in Canada.
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
EPIP and Public Allies partnered for the third webinar in a four-part webinar series: "the future of funding social change", with two NYU Law and Social Enterprise Fellows. Our presenters led us through an exploration of crowdfunding, discussing at length what this new tool means for the future of funding, philanthropy and social change and how it can be used to make an impact. In "Crowdfunding 101", these two social enterprise experts elaborated on the nuts and bolts of the process, examined how impending legal changes may take effect, and explored the potential consequences for funders, governments, fundraising and the social sector as a whole.
Speakers:
• Robert Esposito, Law and Social Enterprise Fellow, NYU
• Shawn Pelsinger, Law and Social Enterprise Fellow, NYU
Is Equity Crowdfunding Right For Your Early-Stage Company?
Get your questions answered at this workshop on the structure, rules and regulations around engaging in Equity Crowdfunding. A year on since the May 2016 SEC Equity Crowdfunding New SEC Guidelines there is a new wave of opportunity for investing - now ANYONE from the accredited investor to your grandma can invest in the next big thing, but what does this really mean for your early stage company? Is this actually an alternative to raising traditional rounds of funding?
Questions answered include:
WHY should I care about regulation crowdfunding?
WHO can engage in regulation crowdfunding?
WHAT is regulation crowdfunding?
WHERE can regulation crowdfunding happen?
WHEN can I engage in regulation crowdfunding?
IS regulation crowdfunding right for me?
Crowdfunding and it’s benefit for funding real estate 1 [autosaved]Eddie Edwards
This document provides biographical information about Eddie Edwards, including his educational and professional background working in real estate, mortgage lending, and as a public speaker. It indicates that the purpose of the communication is for information only and not to sell securities or licensed products. The document lists Eddie Edwards' qualifications and contact information for speaking engagements or real estate investing inquiries.
The State of Real Estate Crowdfunding - April 2018Daniel Fetner
Real Estate Crowdfunding is democratizing access to the CRE asset class for investors, and is helping developers find creative ways to finance deals. In the attached landscape I analyzed 22 crowdfunding platforms and bucketed them into three distinct groups. In my rough estimation, here are a few statistics:
• >$7B of capital invested by Accredited Investors into Real Estate deals via these platforms
• >20,000 transactions done via these platforms
• >$1B of Venture Capital invested into these startups
Page 2 of the landscape discusses my commentary and industry trends. Please don’t hesitate to reach out with questions!
Cisneros: “The Willingness, desire and drive are here”Adriana Cisneros
The Miami Herald highlights the advent of entrepreneurship in Miami.
“The willingness, desire and drive are here,” said Adriana Cisneros, CEO of the Cisneros Group and co-chair of Endeavor Miami. “VC and angel investors are entering the scene every day. It’s only a matter of time until we see some major inroads in this regard. Raising the awareness will be our best ally.”
October, 2014
This document provides an overview of equity crowdfunding in Canada. It discusses the two main regulatory models that have been proposed: the integrated crowdfunding model and the start-up crowdfunding model. Key differences between the models include offering size limits, disclosure requirements, and registration requirements for funding portals. Having two different models adopted across provinces could create a bifurcated crowdfunding regime and limit its success. The document also outlines some of the requirements under each model currently and issues still around equity crowdfunding in Canada.
In 2013, the ban on general solicitation of accredited investors was lifted, causing the largest change to securities laws in decades. While everyone from startups to hedge funds will enjoy new liberties in investor marketing and outreach campaigns, it’s critical that the new rules are followed to a T, eliminating the chance for exemption rescission.
EPIP and Public Allies partnered for the third webinar in a four-part webinar series: "the future of funding social change", with two NYU Law and Social Enterprise Fellows. Our presenters led us through an exploration of crowdfunding, discussing at length what this new tool means for the future of funding, philanthropy and social change and how it can be used to make an impact. In "Crowdfunding 101", these two social enterprise experts elaborated on the nuts and bolts of the process, examined how impending legal changes may take effect, and explored the potential consequences for funders, governments, fundraising and the social sector as a whole.
Speakers:
• Robert Esposito, Law and Social Enterprise Fellow, NYU
• Shawn Pelsinger, Law and Social Enterprise Fellow, NYU
Is Equity Crowdfunding Right For Your Early-Stage Company?
Get your questions answered at this workshop on the structure, rules and regulations around engaging in Equity Crowdfunding. A year on since the May 2016 SEC Equity Crowdfunding New SEC Guidelines there is a new wave of opportunity for investing - now ANYONE from the accredited investor to your grandma can invest in the next big thing, but what does this really mean for your early stage company? Is this actually an alternative to raising traditional rounds of funding?
Questions answered include:
WHY should I care about regulation crowdfunding?
WHO can engage in regulation crowdfunding?
WHAT is regulation crowdfunding?
WHERE can regulation crowdfunding happen?
WHEN can I engage in regulation crowdfunding?
IS regulation crowdfunding right for me?
Crowdfunding and it’s benefit for funding real estate 1 [autosaved]Eddie Edwards
This document provides biographical information about Eddie Edwards, including his educational and professional background working in real estate, mortgage lending, and as a public speaker. It indicates that the purpose of the communication is for information only and not to sell securities or licensed products. The document lists Eddie Edwards' qualifications and contact information for speaking engagements or real estate investing inquiries.
Business angels provide capital for new businesses and startups. They invest their own money in amounts smaller than venture capitalists. In addition to funding, business angels also offer guidance, connections, and mentorship to help businesses succeed. They fill an important role by helping new ideas grow into viable companies ready for larger venture capital investments. Business angel activity varies globally, with some areas like Silicon Valley dominating the United States market. Many governments offer tax incentives to encourage angel investing and support entrepreneurship.
Crowdfunding can benefit large corporations and professional investors in several ways:
1) It allows them to validate market demand for new products before significant investment, gain customer insights, and identify partnerships.
2) Established companies are using crowdfunding for reputation management, innovation development, and monitoring trends.
3) Professional investors are diversifying investment portfolios by investing in crowdfunding platforms and loans.
4) Major banks are creating their own platforms to support small business customers and improve loan underwriting.
The document discusses the history and growth of crowdfunding, including its roots in crowdsourcing. It describes different types of crowdfunding models like donation, reward, and equity-based crowdfunding. It outlines regulations around crowdfunding under the JOBS Act, including Titles II and III. Title II allows equity crowdfunding for accredited investors, while Title III will allow it for non-accredited investors pending SEC rules. The document also discusses opportunities and challenges for universities using crowdfunding for research projects and startups.
A Quick Guide to Venture Capital by Apogee Accelerator Groupsalesbuddy
Apogee Accelerator Group tells you what you need to know before seeking Venture Capital for your startup or small business.
Visit our page: http://partner.salesbuddy.io/apogee
Par Chad Williams - Red Cloud Klondike Strike Inc. Redéfinir les investissements miniers – Le sociofinancement par actions, solution efficace de mobilisation de capitaux pour les petites sociétés minières
This document describes Opportunity Partners Fund II, LP and its investment strategy. The fund will pursue opportunistic purchases of distressed real estate assets in the Twin Cities area that have been significantly devalued due to the economic downturn and tight credit markets. The general partner has over 100 years of combined real estate experience and successfully executed a similar strategy with Fund I, achieving returns above targets. Fund II seeks $25 million in commitments to continue acquiring undervalued properties with a focus on downside protection and strong potential returns.
Prosper Marketplace is an online peer-to-peer lending platform that connects borrowers and lenders. It leverages the power of community by allowing borrowers to get endorsements from friends and form groups to build reputation. This combines the best aspects of traditional lending markets like community support and diversification of online lending. The platform has over 400,000 users, facilitated over $87 million in loans, and made over 2.5 million payments to lenders.
The document discusses the challenges faced by charities in fundraising due to increased competition and decreased donations as a result of the global financial crisis. As a main charity funding research for a disease, the organization has committed $10 million annually but is now unable to raise sufficient funds. It considers hiring an external fundraising firm to help achieve its fundraising target, though there are concerns about the cost of fundraising. The document argues that using a professional fundraising firm can help access new donors, justify fundraising costs as an investment, and allow the charity to focus on its mission while leveraging external expertise, resources and flexibility. It stresses the need for transparency regarding how funds are spent to maintain public trust.
Business Development Grace Kennedy Money ServicesLakesia Wright
The document discusses Grace Kennedy Ltd, a company established in 1922 that provides money transfer services and operates in several Caribbean countries and the UK. It focuses on Grace Kennedy's money transfer business, partnership with Western Union, competition in the industry, and strategies to expand its agent network and services. The company aims to meet the needs of Caribbean people around the world by facilitating money transfers and other financial services internationally.
This is the deck from PeerRealty's October 8, 2015 webinar on the Ameritus Real Estate Fund, our latest real estate crowdfunding offering. Visit http://resources.peerrealty.com/ameritus-real-estate-fund-webinar-video to view the replay of this webinar.
The document discusses various financing opportunities for social entrepreneurs, including crowdfunding, grants, impact investors, angel investors, customers, and bootstrapping. It provides examples of successful crowdfunding campaigns like the FORM1 3D printer and Nikola Tesla museum. The document also discusses how to determine funding needs and outlines the capital lifecycle. Social entrepreneurship is defined as applying entrepreneurial principles to create sustainable social change, rather than private profit.
Murtha Cullina - Crowdfunding and Angel Investors 2012Paige Rasid
This document provides an overview of crowdfunding and its potential impact on angel investors. It defines crowdfunding as aggregating funds from a broad base of donors/investors toward a common goal, and outlines the four main types: microfinance, peer-to-peer lending, donor-based funding, and investment crowdfunding. It discusses upcoming SEC regulations for investment crowdfunding in the US and how this may compete with or complement traditional angel investors. It concludes that the investment landscape will change significantly and questions remain about how crowdfunding will develop and what type of opportunities it will provide for both investors and companies seeking funding.
Crowdfunding has grown significantly in recent years, with an estimated $5.1 billion raised worldwide in 2013. However, the majority of successful crowdfunding campaigns on sites like Kickstarter raise $10,000 or less. While reward-based crowdfunding is largely unregulated, equity crowdfunding is subject to new regulations in both the US and Europe. The US JOBS Act allows for limited equity crowdfunding for up to $1 million annually per company and caps individual investments based on income, but imposes disclosure and financial reporting requirements that some argue are too burdensome for small companies. Equity crowdfunding through accredited investors is an alternative but also has limitations
The document provides an overview and highlights of angel investment trends in 2012 based on a report from the Angel Resource Institute, Silicon Valley Bank, and CB Insights (Halo Report). Some key findings include:
- Median angel round size dipped to $600k in 2012 but was trending up in Q4.
- Early stage pre-money valuations remained steady from 2011.
- Mobile sector gained investment share while healthcare dropped in deals and dollars.
- Regions like Northwest and Southwest saw increased investment shares while California's share declined.
The Changing Relationship Between Investors and Investments OurCrowd
Take this opportunity to meet OurCrowd’s new president, Anthony DeChellis, who brings to the discussion his extensive experience in the private banking and institutional finance world. Anthony previously served as CEO of Private Banking Americas at Credit Suisse, headed Private Wealth Management at UBS, and held a range of leadership positions at Merrill Lynch, including Manager of the European Private Banking Business.
- Astrum Fund I seeks moderate absolute returns through commercial real estate sale-leaseback transactions with US middle market companies impacted by limited credit markets.
- It focuses on operationally essential real estate and uses a buy-back structure to purchase properties at opportunistic prices and deliver high income and long-term capital appreciation with reduced risk.
- The fund is managed by Astrum Investment Management and leverages their affiliation with a valuation firm to generate proprietary deal flow in the underserved middle market segment.
Investment bank Allegiance Capital has opened a new office in Chicago as part of its ongoing expansion efforts. The company has experienced over 50% annual growth over the past 5 years and projects a 60% revenue increase for 2010. The new Chicago office will be led by Omar Diaz and Brad Curtis and will focus on serving middle-market companies in the region with revenues between $5-50 million. Allegiance Capital focuses on the underserved middle-market and fills a need for companies seeking investment banking services.
This document discusses crowdfunding and its role in venture financing. It outlines the four main types of crowdfunding: donation, reward, lending, and equity. Donation crowdfunding involves no financial return, reward crowdfunding provides backers with tangible rewards, lending crowdfunding provides repayment with/without interest, and equity crowdfunding provides company ownership. The document also examines crowdfunding trends worldwide, success rates and median sizes of campaigns, and both the benefits and risks of crowdfunding.
Crowdfunding has grown as a way for entrepreneurs to raise funds. It allows small businesses to expand their pool of investors through online platforms. While the US has allowed equity crowdfunding for over a decade, Canada only recently introduced exemptions. Under the Multilateral Instrument 45-108, companies can raise up to $1.5 million from investors through a registered funding portal in a 12-month period. Equity crowdfunding provides small businesses an alternative to bank loans, venture capital, or angel investors to access capital. However, companies need to consider the visibility, reputational risks, and potential for micromanaging that crowdfunding brings.
Wealth Migrate - the future of the $217 trillion dollar real estate industry... Wealth Migrate
This document discusses disruption in the $217 trillion real estate industry and how technology trends are enabling new business models. It outlines 8 technology trends including blockchain, AI, big data/algorithms, VR/AR, mobile adoption, 3D printing, the digital layer, and their intersection with 8 social trends including social commerce, the rise of the global middle class, globalization, cryptocurrencies, democratizing access to wealth, gamification, personalization, and impact investing. The document promotes joining a profitable and purposeful journey to invest in tech companies through their platform.
Business angels provide capital for new businesses and startups. They invest their own money in amounts smaller than venture capitalists. In addition to funding, business angels also offer guidance, connections, and mentorship to help businesses succeed. They fill an important role by helping new ideas grow into viable companies ready for larger venture capital investments. Business angel activity varies globally, with some areas like Silicon Valley dominating the United States market. Many governments offer tax incentives to encourage angel investing and support entrepreneurship.
Crowdfunding can benefit large corporations and professional investors in several ways:
1) It allows them to validate market demand for new products before significant investment, gain customer insights, and identify partnerships.
2) Established companies are using crowdfunding for reputation management, innovation development, and monitoring trends.
3) Professional investors are diversifying investment portfolios by investing in crowdfunding platforms and loans.
4) Major banks are creating their own platforms to support small business customers and improve loan underwriting.
The document discusses the history and growth of crowdfunding, including its roots in crowdsourcing. It describes different types of crowdfunding models like donation, reward, and equity-based crowdfunding. It outlines regulations around crowdfunding under the JOBS Act, including Titles II and III. Title II allows equity crowdfunding for accredited investors, while Title III will allow it for non-accredited investors pending SEC rules. The document also discusses opportunities and challenges for universities using crowdfunding for research projects and startups.
A Quick Guide to Venture Capital by Apogee Accelerator Groupsalesbuddy
Apogee Accelerator Group tells you what you need to know before seeking Venture Capital for your startup or small business.
Visit our page: http://partner.salesbuddy.io/apogee
Par Chad Williams - Red Cloud Klondike Strike Inc. Redéfinir les investissements miniers – Le sociofinancement par actions, solution efficace de mobilisation de capitaux pour les petites sociétés minières
This document describes Opportunity Partners Fund II, LP and its investment strategy. The fund will pursue opportunistic purchases of distressed real estate assets in the Twin Cities area that have been significantly devalued due to the economic downturn and tight credit markets. The general partner has over 100 years of combined real estate experience and successfully executed a similar strategy with Fund I, achieving returns above targets. Fund II seeks $25 million in commitments to continue acquiring undervalued properties with a focus on downside protection and strong potential returns.
Prosper Marketplace is an online peer-to-peer lending platform that connects borrowers and lenders. It leverages the power of community by allowing borrowers to get endorsements from friends and form groups to build reputation. This combines the best aspects of traditional lending markets like community support and diversification of online lending. The platform has over 400,000 users, facilitated over $87 million in loans, and made over 2.5 million payments to lenders.
The document discusses the challenges faced by charities in fundraising due to increased competition and decreased donations as a result of the global financial crisis. As a main charity funding research for a disease, the organization has committed $10 million annually but is now unable to raise sufficient funds. It considers hiring an external fundraising firm to help achieve its fundraising target, though there are concerns about the cost of fundraising. The document argues that using a professional fundraising firm can help access new donors, justify fundraising costs as an investment, and allow the charity to focus on its mission while leveraging external expertise, resources and flexibility. It stresses the need for transparency regarding how funds are spent to maintain public trust.
Business Development Grace Kennedy Money ServicesLakesia Wright
The document discusses Grace Kennedy Ltd, a company established in 1922 that provides money transfer services and operates in several Caribbean countries and the UK. It focuses on Grace Kennedy's money transfer business, partnership with Western Union, competition in the industry, and strategies to expand its agent network and services. The company aims to meet the needs of Caribbean people around the world by facilitating money transfers and other financial services internationally.
This is the deck from PeerRealty's October 8, 2015 webinar on the Ameritus Real Estate Fund, our latest real estate crowdfunding offering. Visit http://resources.peerrealty.com/ameritus-real-estate-fund-webinar-video to view the replay of this webinar.
The document discusses various financing opportunities for social entrepreneurs, including crowdfunding, grants, impact investors, angel investors, customers, and bootstrapping. It provides examples of successful crowdfunding campaigns like the FORM1 3D printer and Nikola Tesla museum. The document also discusses how to determine funding needs and outlines the capital lifecycle. Social entrepreneurship is defined as applying entrepreneurial principles to create sustainable social change, rather than private profit.
Murtha Cullina - Crowdfunding and Angel Investors 2012Paige Rasid
This document provides an overview of crowdfunding and its potential impact on angel investors. It defines crowdfunding as aggregating funds from a broad base of donors/investors toward a common goal, and outlines the four main types: microfinance, peer-to-peer lending, donor-based funding, and investment crowdfunding. It discusses upcoming SEC regulations for investment crowdfunding in the US and how this may compete with or complement traditional angel investors. It concludes that the investment landscape will change significantly and questions remain about how crowdfunding will develop and what type of opportunities it will provide for both investors and companies seeking funding.
Crowdfunding has grown significantly in recent years, with an estimated $5.1 billion raised worldwide in 2013. However, the majority of successful crowdfunding campaigns on sites like Kickstarter raise $10,000 or less. While reward-based crowdfunding is largely unregulated, equity crowdfunding is subject to new regulations in both the US and Europe. The US JOBS Act allows for limited equity crowdfunding for up to $1 million annually per company and caps individual investments based on income, but imposes disclosure and financial reporting requirements that some argue are too burdensome for small companies. Equity crowdfunding through accredited investors is an alternative but also has limitations
The document provides an overview and highlights of angel investment trends in 2012 based on a report from the Angel Resource Institute, Silicon Valley Bank, and CB Insights (Halo Report). Some key findings include:
- Median angel round size dipped to $600k in 2012 but was trending up in Q4.
- Early stage pre-money valuations remained steady from 2011.
- Mobile sector gained investment share while healthcare dropped in deals and dollars.
- Regions like Northwest and Southwest saw increased investment shares while California's share declined.
The Changing Relationship Between Investors and Investments OurCrowd
Take this opportunity to meet OurCrowd’s new president, Anthony DeChellis, who brings to the discussion his extensive experience in the private banking and institutional finance world. Anthony previously served as CEO of Private Banking Americas at Credit Suisse, headed Private Wealth Management at UBS, and held a range of leadership positions at Merrill Lynch, including Manager of the European Private Banking Business.
- Astrum Fund I seeks moderate absolute returns through commercial real estate sale-leaseback transactions with US middle market companies impacted by limited credit markets.
- It focuses on operationally essential real estate and uses a buy-back structure to purchase properties at opportunistic prices and deliver high income and long-term capital appreciation with reduced risk.
- The fund is managed by Astrum Investment Management and leverages their affiliation with a valuation firm to generate proprietary deal flow in the underserved middle market segment.
Investment bank Allegiance Capital has opened a new office in Chicago as part of its ongoing expansion efforts. The company has experienced over 50% annual growth over the past 5 years and projects a 60% revenue increase for 2010. The new Chicago office will be led by Omar Diaz and Brad Curtis and will focus on serving middle-market companies in the region with revenues between $5-50 million. Allegiance Capital focuses on the underserved middle-market and fills a need for companies seeking investment banking services.
This document discusses crowdfunding and its role in venture financing. It outlines the four main types of crowdfunding: donation, reward, lending, and equity. Donation crowdfunding involves no financial return, reward crowdfunding provides backers with tangible rewards, lending crowdfunding provides repayment with/without interest, and equity crowdfunding provides company ownership. The document also examines crowdfunding trends worldwide, success rates and median sizes of campaigns, and both the benefits and risks of crowdfunding.
Crowdfunding has grown as a way for entrepreneurs to raise funds. It allows small businesses to expand their pool of investors through online platforms. While the US has allowed equity crowdfunding for over a decade, Canada only recently introduced exemptions. Under the Multilateral Instrument 45-108, companies can raise up to $1.5 million from investors through a registered funding portal in a 12-month period. Equity crowdfunding provides small businesses an alternative to bank loans, venture capital, or angel investors to access capital. However, companies need to consider the visibility, reputational risks, and potential for micromanaging that crowdfunding brings.
Wealth Migrate - the future of the $217 trillion dollar real estate industry... Wealth Migrate
This document discusses disruption in the $217 trillion real estate industry and how technology trends are enabling new business models. It outlines 8 technology trends including blockchain, AI, big data/algorithms, VR/AR, mobile adoption, 3D printing, the digital layer, and their intersection with 8 social trends including social commerce, the rise of the global middle class, globalization, cryptocurrencies, democratizing access to wealth, gamification, personalization, and impact investing. The document promotes joining a profitable and purposeful journey to invest in tech companies through their platform.
The document provides information about an angel investing conference held by VisionTech Angels. It includes details about the conference sponsors and speakers, including Oscar Moralez, founder of VisionTech Partners, who discusses what angel investors are and VisionTech Angels' investment process and criteria. Kristin Cooper, CEO of The Startup Ladies, discusses her organization's mission to support women entrepreneurs and how they work to increase the number of startups and first-time investors. The document concludes with brief introductions of additional speakers at the conference.
The document discusses an upcoming crowdfunding workshop hosted by Propel Arizona. The agenda covers crowdfunding overviews, crafting campaigns, visuals, rewards, and running successful campaigns. It also discusses different types of crowdfunding like donation, rewards, equity and debt crowdfunding. Key topics include protecting intellectual property, why people support crowdfunding campaigns due to passion for the product or cause, and lessons from successful Kickstarter campaigns emphasizing emotional returns over financial returns.
This document provides an overview of various methods for companies to raise funds, including crowdfunding. It discusses that companies of all sizes generally need to raise money through avenues like venture capital, bonds, or crowdfunding platforms. The equity crowdfunding exemption under Regulation Crowdfunding allows companies to raise up to $1 million from individual investors within a 12 month period by conducting offerings through an SEC-registered funding portal. The exemption provides certain disclosure requirements for issuers to comply with regarding their financials, business plans, and risks. It also outlines investment limits for different types of individual investors. The regulation went into effect on May 16, 2016 and allows companies to raise capital from the general public in a
Startup Basics: Legal, Business, and Financing StrategiesRoger Royse
Visit our website rroyselaw.com for more resources on developing successful startups. Royse Law Firm has extensive experience helping startups in the Silicon Valley become successful by setting them on the right track from the beginning.
This document summarizes investment crowdfunding and its impact. It discusses (1) how investment crowdfunding works as a mechanism to raise funds from investors through online platforms, (2) the legal framework under Title II and Title III of the JOBS Act and how Title II allows general solicitation for accredited investors, (3) market data on crowdfunding deals and platforms globally, and (4) the potential impact of investment crowdfunding for businesses in gaining capital and marketing, for investors in accessing new assets, and for communities in empowering local investment.
Introduction to Real Estate Crowdfunding by the CrowdSeekr TeamAshley Smith
This is the slide deck from our recent presentation on the history and future of real estate crowdfunding at the 2017 Commercial Real Estate Summit at the University of Central Oklahoma.
Startup Basics: Legal, Business, and Financing StrategiesRoger Royse
This document provides an overview of startup basics related to legal structures, business strategies, and financing. It discusses key considerations for founders around choosing an entity structure like an LLC, S-Corp, or C-Corp. It also covers topics such as founder equity allocation, common stock types, capitalization tables, and valuation. Additionally, the document summarizes early stage funding sources, tax implications, and venture capital term sheet negotiations. Crowdfunding regulations and opportunities are also reviewed at a high-level.
Crowdfunding Basics and the Impact on Angel InvestorsLynn M. Miller
Crowdfunding allows companies to raise funds from many small individual investors online rather than from traditional sources like venture capitalists or business angels. There are four main types of crowdfunding: microfinance, peer-to-peer lending, donor-based funding, and investment crowdfunding. New JOBS Act regulations will allow investment crowdfunding in the US through regulated online portals. This may compete with or complement traditional angel investors by providing an alternative source of funding for startups. However, angels may still provide advantages like business expertise and mentorship that "dumb money" crowdfunding alone cannot. The crowdfunding landscape is still developing and will change the investment environment significantly.
US-EU Meeting Alternative Finance PresentationGrow VC Group
Summary about alternative finance market in the US and EU, including API economy model, new finance instruments and cooperation of new and old finance models.
The Future of The Private Capital Markets: Equity Crowdfunding by FlashFundersFlashFunders
After months of anticipation, the SEC has finally opened up registration for online platforms that intend to legally solicit offerings through equity crowdfunding (Regulation CF). For the first time in 80 years, all Americans will have equal access to invest in private companies. Individuals can look forward to investing through online equity crowdfunding platforms as early as mid-May 2016 (pending SEC approval). However, Title III does not completely eliminate the regulatory barriers to investing or raising capital. Here are some important details you should consider leading up to the equity crowdfunding implementation...
The Future of The Private Capital Markets: Equity CrowdfundingJuliah Ma
Vincent Bradley, CEO of FlashFunders, discusses the future of equity crowdfunding under Regulation CF. The JOBS Act and Reg CF allow companies to publicly raise up to $1 million from both accredited and non-accredited investors. This provides a low-cost funding option for startups and allows the over 230 million non-accredited Americans to invest in private companies. FlashFunders is positioned as a leading equity crowdfunding platform to help companies manage fundraising and remain compliant under Reg CF.
The document summarizes a panel discussion on crowdfunding and the JOBS Act. It introduces four panelists: Doug Ellenoff, a corporate attorney who works on capital market initiatives like crowdfunding; Joy Schoffler, founder of a financial PR firm and board member of crowdfunding organizations; Judd Hollas, founder and CEO of an equity crowdfunding platform; and Judy Robinett, an advisor to startups on business and funding strategies. The document also provides an overview of crowdfunding types, the JOBS Act, and issues around general solicitation and Title II and III crowdfunding under the JOBS Act.
This document discusses investment crowdfunding and delineates it from reward-based crowdfunding. It explains the mechanism of investment crowdfunding, how investors provide funds to businesses in exchange for securities like equity or debt instruments. It also outlines the legal framework provided by the JOBS Act, including Title II which allows general solicitation for accredited investors and Title III which will allow crowdfunding for non-accredited investors. Finally, it discusses the potential impact of investment crowdfunding in democratizing access to capital for businesses and empowering individual investors.
The document discusses the JOBS Act and crowdfunding. It introduces four speakers who are experts in equity crowdfunding and capital formation: Doug Ellenoff, Judd Hollas, Joy Schoffler, and Judy Robinett. It provides brief biographies of each speaker, noting their relevant experience and roles in the crowdfunding industry. The document also contains slides on topics related to crowdfunding such as the regulatory environment, characteristics of crowdfunding campaigns, and how to build a network for crowdfunding.
Detailed overview of OnDeck's IPO including its funding history, business operations, financial performance, public company comparables and relevant industry transactions
SBA Crowdfunding Webinar with Business Forward - 4/24/14businessforward
The presentation provides an overview of crowdfunding and the SEC's proposed rules regarding equity crowdfunding under the JOBS Act. It discusses the background and current state of crowdfunding, popular crowdfunding platforms, the SEC's proposed rules around disclosure requirements for companies and portals, and the SBA's perspectives on issues to watch like timing, platform regulation, and fraud protection. The SBA plans to equip its regional centers to assist small businesses and platforms with crowdfunding training and connect accelerators with crowdfunding platforms.
Crowdfunding - A Webinar From the Small Business Administrationbusinessforward
Business Forward and the Small Business Administration hosted a joint webinar to discuss the development of crowdfunding and the new rules proposed by the SEC. Pravina Raghavan, the Deputy Associate Administrator for the Small Business Administration’s (SBA) Office of Investment and Innovation, delivered a presentation and answered questions from business owners across the country. This presentation discusses the history of crowdfunding, and charts out a foreseeable path for new SEC rules, and makes a number of recommendations for businesses interested in utilizing the platform.
Explore the key differences between silicone sponge rubber and foam rubber in this comprehensive presentation. Learn about their unique properties, manufacturing processes, and applications across various industries. Discover how each material performs in terms of temperature resistance, chemical resistance, and cost-effectiveness. Gain insights from real-world case studies and make informed decisions for your projects.
2. “Never doubt that a small group of thoughtful,
committed citizens can change the world; indeed, it's
the only thing that ever has.”
- Margaret Mead
3. Dan BairD
!
" dan@crackthecrowd.com
LinkedIn.com/danbaird
twitter.com/whistln
#
Crack the Crowd was founded to address an all-too-common problem: business
owners found themselves spending thousands of dollars hiring consultants or
managers without crowdfunding experience, who despite good efforts, made
avoidable mistakes. For that reason, I created an agency specifically tailored to
crowdfunding.
With our services, tools, and practical execution plans, we can maximize your
team’s productivity without losing your authenticity. We’re here to highlight your
expertise, streamline your operation, and impart the insights on crowdfunding and
launching new ventures.
We’re excited to be a part of your success.
- Dan Baird, CEO
4. ' !info@CrackTheCrowd.com
CrowdFunding Consulting
Get access to experts in strategic innovation, branding, human-oriented
design, and of course, crowd-engagement. Our team has collaborated on
dozens of white-label equity, real estate, and reward platforms; we can
help you launch your platform, put it in the spotlight, and ensure you will
be able to scale, grow, and succeed.
Platform Strategies
$
• Branding
• Quick launch Guides
• White Label Materials
• UX Testing
Portal Creative
%
• Marketing Automation
• Social Media
• SEO & PPC
Campaigns
• Email Marketing
Ads & Promotion
• Launch Coordination
• Marketing Automation
• CRM Management
• Sales Consulting
Growth
&
5. (
' !info@CrackTheCrowd.com
“Crowdfunding” 5
“Crowdfunding is a method of financial
intermediation, enabling efficiency in the
identification, participation and funding of
investment opportunities”
“The use of small amounts of capital from
a large number of individuals to finance a
new business venture.”
Crowdfunding has the potential to
increase entrepreneurship by expanding
the pool of investors from whom funds
can be raised beyond the traditional circle
of owners, relatives and venture
capitalists.
)
*
$
GoFundMe.com
Donations
Kickstarter / Indiegogo
Rewards & Product Validation
Social capital > Marketing
Word of Mouth Marketing
+
Prosper, Lending Club
Peer-to-Peer Lending
⋆
Realty Mogul, Patch of Land,
Carlton, CBRE
Equity / Debt
(
7. ' !info@CrackTheCrowd.com
7
The Global Aggregate-
.
~270,000 Jobs
Fundable
-
$96 Billion
by 2025
World Bank 2013
$200B
$6.1 - $16 - $34.4
North America retains first place
Lending: $11B
$0B
$1.75B
$3.5B
$5.25B
$7B
Art
Publishing
M
usic
&
RecordingScience
&
Tech
Property
Film
&
Perform
ing
ArtsSocialCauses
Business/
Entre
2013 2014
Source economist / Massolution
8. ' !info@CrackTheCrowd.com
Title 3
ETA: January
Title 4 / Reg A+
Bankroll & Many Others ()
8
The Regulatory Rollout(
/
0
$
1
Revenue equivalent crowdfunding
No Guarantees
Mini IPO
Seed (vs Angel) Round
Investor Limits No Funds
Test the Waters
(Then only go Tier II)
Unlimited Raises
Limited Population
Psychological Friction to Invest
General Solicitation & Advertising
Rules in Rule 506 & 144A
SPV’s for CF on Cap Table
REAL Crowdfunding
$5MM Limit
Investor Limits 100K
No Funds
Test the Waters
Title 2
Angel List, Gust, Patch of Land
Carlton Group
Perks / Donations / Pre Sales
Kickstarter, Indiegogo, gofundme
9. ' !info@CrackTheCrowd.com
Better deal economics
Solicitation + Marketing & PR
Transparent = Higher Returns
Streamline Online
24/7 Fundraising
STRENGTHS
Regular Accreditation
The Psychological Friction to invest
WEAKNESSES
Mortgage
Institutional
Secondary Markets
OPPORTUNITIES
Proposed Rules revise Accredited
investor to $500K and $2.5MM
shrinks population 75%+
THREATS
9
Title II Of the Jobs Act2
-No limits on Raises
-No Per Investor Limits
-General Solicitation
-Low Cost
-Exempt State Registration
-Up to 2000 Accredited Investors
-No Audited Financial Status
-Investor Verification
-Requires Bad Actor Check
-No Ongoing Reporting
-No PreSale Approval
-Limited Population
-General Solicitation & Advertising
Rules in Rule 506 & 144A
-SPV’s for CF on Cap Table
-Available to Foreign Issuers
Overview
%
10. ' !info@CrackTheCrowd.com
10
Intrastate3
4
5
+
6
majority exclude and may include RE
Holding / Development Companies
“Investment Company” Exclusion
Varies, but most are $1MM and
$2MM with audited Financials.
Caps & Financial Audits
Geographical and income-based
investment limits
Investor Restrictions
Ensure Business Portal, escrow
provider are also intrastate
Authorized or Chartered Vendors
As of August of 2015, twenty-nine (29) states have either enacted separate
intrastate crowdfunding exemptions, or have enacted amendments to their existing
blue sky laws to permit some type of intrastate crowdfunding.
Source: CrowdfundingLegalHub.com / crowdfundinsider.com
Proposed
Enacted
Rejected
11. ' !info@CrackTheCrowd.com
11
Reg A+ The Mini IPO(
1
2
Tier 1
-$20MM Max
-Any Investor @ 10% of Income
-No Audits
-Blue Sky Applies
-No State Override
“If you need non-accredited
investors and live in a
state with intrastate
Crowdfunding, think about
that.” -Mark Roderick
-$50MM Max
-Any Investor @ 10% of Income
-2 Years Audited Financials
-$75k+ $20k Ongoing
-6+ Months to File
-Pre-Empt State Oversight
-Different Investors P/Asset
-Investors on Cap Table
(No SPV intermediaries)
Tier 2
12. ' !info@CrackTheCrowd.com
12
Title 3…What Matters?(
• Attention to Business Model Viability
• Max of $1 MM p/year > $5MM
• Investor max (per issuer) $100,000
• Issuers aren't required to file tax returns, but must disclose specific info from their returns
• Provide optional Q&A format that issuers could use in disclosures
• Audited financial statements + review by an independent accountant auditor > First time would be
permitted to provide review rather than audited financial statements
• Information about officers and directors as well as 20%+ owners
• Required to file an annual report with the commission and provide it to investors
• Curation
13. ' !info@CrackTheCrowd.com
13
Title 3 - Company(
Musts
•U.S.-based
•No disqualificaoon under Regulaoon Crowdfunding
•No companies that failed to comply with the annual reporong requirements during two years preceding
•Specific business plan, or must have indicated that the business plan is to engage in a merger or acquisioon with an unidenofied
company or companies (no blank check companies)
•A company can conduct its offering exclusively through one intermediary plaqorm at a ome
•Max of $1 MM p/year > $5MM
•Investor max (per issuer) $100,000
Disclosure Requirements
•A descripoon of the business and the use of proceeds from the offering
•Price and pricing method of the securioes and the targeted offering price
•Audited financial statements + review by an independent accountant auditor
•A company offering more than $500,000 - $1 million for the first ome would be permired to provide reviewed rather than audited
financial statements
•Informaoon about officers and directors as well as 20%+ owners
•Required to file an annual report with the commission and provide it to investors
14. ' !info@CrackTheCrowd.com
14
Title 3 - Investor(
Individual investors may, over a 12-month period, can invest in the aggregate across all crowdfunding offerings up to:
•If income / NW is less than $100,000, than the greater of: $2,000 or 5 percent of the lesser of their annual income or net worth.
•If both annual income and net worth are equal to or more than $100K, 10 percent of the lesser.
•Securioes may not be resold for one year.
•Holders of these securioes would not count toward the threshold that requires a company to register its securioes under Exchange Act
Secoon 12(g) if the company is current in its annual reporong obligaoons, retains the services of a registered transfer agent, and has
less than $25 million in total assets as of the end of its most recently completed fiscal year.
•All transacoons relying on the new rules would be required to take place through an SEC-registered intermediary, either a broker-dealer
or a funding plaqorm.
• Take measures to reduce the risk of fraud, including having a reasonable basis for believing that a company complies with Regulaoon
Crowdfunding and that the company has established means to keep accurate records of securioes holders.
•Investor max per issuer $100,000.
15. ' !info@CrackTheCrowd.com
15
Title 3 - Platforms(
•Must register with the commission & become a member of a naoonal securioes associaoon (currently, FINRA).
•One intermediary plaqorm at a ome.
•Provide investors with educaoonal materials for the process for invesong on the plaqorm, and the types of securioes being offered and
informaoon a company must provide to investors, resale restricoons, and investment limits.
•Take certain measures to reduce the risk of fraud, including having a reasonable basis for believing that a company complies with
Regulaoon Crowdfunding and that the company has established means to keep accurate records of securioes holders.
•Offer company disclosures to the public 21 days prior to the raise and throughout the offering period.
•Provide communicaoon channels to permit discussions about offerings on the plaqorm.
•Provide disclosure to investors about the compensaoon the intermediary receives.
•Accept an investment commitment from an investor only ater that investor has opened an account.
•Have a reasonable basis for believing an investor complies with the investment limitaoons.
•Provide investors nooces once they have made investment commitments and confirmaoons at or before compleoon of a transacoon.
•Comply with maintenance and transmission of funds requirements.
The rules also would prohibit intermediaries from engaging in certain acCviCes, such as:
•Providing access to companies that have a reasonable basis for believing there is potenoal for fraud or other investor protecoon
concerns.
•Having a financial interest in a company that is offering or selling securioes on its plaqorm unless the financial interest is compensaoon
for the services.
•Compensaong any person for providing the intermediary with personally idenofiable informaoon of any investor or potenoal investor.
•Funding plaqorms would also be prohibited from providing investment advice or making recommendaoons.
16. ' !info@CrackTheCrowd.com
16
Example Campaign Rollout2
/0 1 1 7 8
Hire an accounong firm and
securioes lawyer to prepare
financial statements /
offering docs. Review & prep
contacts.
Offering Prep
Get a team with verified industry
connections to offering. Create
draft media, video, & promotion
strategy.
Hire Industry + Financial PR Firm
Update Site, Social, Landing
Pages, Prep PPC + Paid
Promotion.
Prep Digital Presence
Draft the script and campaign
digital assets, video, & two
rounds of feedback from
target investor audience.
Build Assets & Get Feedback
Choose a partner with existing
accredited investor base, verify bad
actor checks, upload tools & verify
accreditation.
Select Platform
Secure pre-launch investor
commitments and ongoing
campaign press opportunities.
Pre-funding Outreach
Crack the Crowd does not engage in the offer, sale or transfer of securities and securities may not be offered, sold or transferred via our team or affiliated business contractors. Securities may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of 1933, as
amended (the Securities Act) or (ii) an available exemption from registration under the Securities Act. Please consult legal counsel in the appropriate jurisdiction before offering, selling or buying securities as registration under the Securities Act or similar state legislation. Crack the Crowd is not
guaranteeing any information as reliable or accurate, and that it's subject to change at anytime. Please consult with your own attorney before engaging in any equity crowdfunding activity.
17. ' !info@CrackTheCrowd.com
2015
17
Predictions9
: ; < =
Real estate crowdfunding expands
to over $2.5B, a 250% increase over
2014 and 2013’s 156% growth.
(Massolution)
Mortgage players e.g., SOFI
($1T market) enter the space and
disrupt beyond a $2.5B estimate.
Title III makes new “equity”
mortgages interesting.
Title III arrives, estimates are
revised further upward. Reg A+
lies largely untouched.
Jeb, Hillary, adopt Title III fixes
as a part of their platform.
Dozens of CFPs launch. Dozens, that
never had a chance, fail. Single issuer
platforms fragment the market
further. Strategic players invest.
18. ' !info@CrackTheCrowd.com
???
18
9
<>=
Multi-family and rehab offerings,
again largely in the US, will see
moderate growth of up to 150% for
the coming year, with most projects
amounting to less than $500,000.
Cum sociis natoque penatibus et magnis dis
parturient montes, nascetur ridiculus mus.
Commercial remains the darling
of institutional investments;
greater adoption & viable
investors drive real estate.
Predictions
21. ' !info@CrackTheCrowd.com
21
What They’re Saying(
“Crack the Crowd has produced some of the best crowdfunding strategy I’ve seen.”
— Richard Swart, PHD, Scholar-in-Residence at UC Berkeley, Author, Crowdfunding Thought-
leader
“I can’t tell you how much time this has saved me in research...Thanks for some very
concrete content in this space!”
— Shad Vick - Chief Software Architect, Lunasoft
“Their ability to create and identify a solid business strategy, regardless of the industry, is second to
none. Whether in need of pitch coaching, business strategy, crowdfunding campaigns, or all of the
above; Crack the Crowd is essential to your brand’s success.”
— Frank Day - Founder, Krma Golf
"Crack The Crowd solves the biggest problem crowd finance platforms face today: how to
become relevant. Through applied analytics and a network of marketing professionals,
CTC helps to let your platform stand tall among your peers.
— Colton Riley - Executive Vice President, Tieback Realty Finance
22. ' !info@CrackTheCrowd.com
22
Our Partners In Crowdfunding4
Our network has unrivaled access to crowdfunding’s best, which enables us to pair you with a dedicated portfolio of companies that match
your needs, and enables you to take advantage of opportunities: technology, operations, media, and legal support.
Proven experts meet high-growth teams
23. ' !info@CrackTheCrowd.com
23
Our Guiding Process: Lean &Strategic(
We’ll take full inventory of your existing tools to
avoid overlap. We’ll conduct a discovery, audience
segmentation, and review existing assets for your
offering.
Project Exploration & Discovery
We’ll ideate & rapidly prototype several concepts
within our team and gather feedback on several
possible strategies to create a plan that
incorporates the best elements of several
approaches.
Idea Generation & Strategic Plan
We’ll launch a controlled experiment to your
target audience, build statistically reliable
feedback (and refine), while selectively
seeding launch partner commitments.
Beta / Validation
We’ll help you launch using
proprietary crowdfunding and
traditional media methods with a
focus on key performance indicators
that scale & refine your operations.
Hard Launch / Scale
Tactics & Qualitative Validation
Working with your target audience, we’ll capture
qualitative data and compare several strategies
side by side to create a beta product and rollout
plan that incorporates the best of each concept,
and maximizes viability.
Review & refine Process
24. ' !info@CrackTheCrowd.com
24
Integrated Marketing & CRM Configuration(
4 Conversion is critical, so our practical execution and data driven
approach minimizes waste and maximizes impact.
1 2
3 4
1
/5
Our creatives will create
targeted ads and closely
monitor your campaigns and
content in a practical six-
month package that includes
monthly course-corrections to
ensure efforts aren't wasted.
Creative and Campaign launch
We’ll fix data leaks and existing
flaws to mitigate any gaps in our
plan, and configure recurring
snapshots.
Configure & Align
After we establish
benchmarks, we’ll optimize
channels to lower your cost
per lead / customer, and scale
high-performing tactics.
Optimize and Scale
Review goals, existing
resources, and engagement to
customize strategy and tactics.
One size does not fit all.
Assess
$
25. ' !info@CrackTheCrowd.com
25
White-Label & BRANDED Content+
There is no berer R.O.I. for a plaqorm than kickstarong a high-
quality campaign. We can build custom, beauoful, instrucoonal
materials to help your campaigns raise more, close more quickly,
and reduce customer support needs.
Branded content
Quick-Start Guides, Campaign Best Practices, White Papers, and more…
26. ' !info@CrackTheCrowd.com
26
Case Study?
During the briefing phase it was apparent that this was a
special project that would need a high-level of customizaoon.
CrowdEngine was already growing fast, and we were able to
accelerate growth and turn their vision into reality, on ome
and on budget. We built the brand, markeong plan, site copy
and design revisions that elevated their percepoon from one
of many, to the premier provider of white label sotware
soluoons in the space.
Crowdengine
White Label Crowdfunding Software
27. (
' !info@CrackTheCrowd.com
Campaign A La Carte Services 27
5
+
4
2
@
A
Our team has launched millions of dollars worth of
innovation. We know the techniques to capture and
engage users.
Product Generation & Refinement
There is no need for guesswork when it comes to
setting a target raise or rewards price. Our strategy
will get you realistic targets and often higher margins.
Pricing and Raise Target Analysis Services
We work bootcamp-style to get as much work done
in a single session as possible. You’ll learn what
matters and how to execute as quickly as possible.
1-on-1 Campaign Consulting and Advisory Services
Save hundreds of hours. We’ll help you through the
first 80% of your work so you can launch faster
without compromising quality.
Outreach, Tools, and Templates
With teams and partners that can cover everything
from research, prototyping, to email marketing, we
can simplify the campaign dramatically.
Implementation: Fulfillment & Support
Ask any crowdfunder, it’s no where near as easy as it
looks. If your campaign has already launched and
needs a boost, we can help to get it back on track.
Launch Revival
28. ' !info@CrackTheCrowd.com
28
Marketing Strategies & Plans(
Awareness
Consideration
Preference
Purchase
Partner / Re-up
Email
SEO/SEM
Inbound
Social
PPC/Ads
Different channels will outperform others in
different stages of your conversion funnel. By
mapping each through our integrated
marketing system, we’ll optimize and scale
your marketing mechanisms to get you the
best bang for your buck.
29. ' !info@CrackTheCrowd.com
Content and social media
planning over 5 sessions
Six Month Strategy
29
Unknown to Influencer
Six Month Content and Social Strategy
4
%
:
2 B
C
D
Works with you one-on-one
to customize your plan
A dedicated content expert
Engage with strategically
developed content
Targeted messages
Periodic check-ins ensure you
focus on what works
Monitoring & Alerts
Execute yourself or have
our team manage for you
D.I.Y. & Pro Options
Content blueprints simplify
the creative process
Templates & Packages
What could you do with a thousand more brains working for you? With Unknown to Influencer, you’ll get
the roadmap that makes sense of social marketing so you can focus your time on what matters. Learn: how,
who, and what matters, build clout, and engage your audience.
30. "
1387 E 3010 S Salt Lake City, UT
+1 (801) 316 - 3564
! '# E info@CrackTheCrowd.com/CracktheCrowd@crackthecrowd/CracktheCrowd
Go Ahead, Ask Us Anything.
Office, Social Media and e-Mail