This document discusses crowdfunding and the JOBS Act, which legalized equity crowdfunding. It outlines the disclosure requirements for equity crowdfunding campaigns, including providing business descriptions, financial statements reviewed by a CPA, use of proceeds, and valuation methodology. Challenges with equity crowdfunding include developing a business plan, meeting financial reporting requirements, getting valuations attested, and determining company valuation and share price. The document emphasizes the importance of identifying and protecting intellectual property when crowdfunding a new business or product.

1. "TRAKLIGHT", "ID YOUR IP", "IP VAULT", and "IP CLOUD" are registered trademarks of The PIP Vault, LLC. © MMXIII The PIP Vault, LLC. All Rights Reserved.
Identify your innovation. Safeguard your success.
®
ISSUER
Views:
Crowdfunding,
the
JOBS
Act,
and
the
Future
of
Innova@on
Funding
Mary
JueCen,
Founder
&
CEO
@maryjueCen
@traklight
March
19,
2014
LES:
Silicon
Valley
Chapter

2. L
OVERVIEW
REWARDS BASED:
Indiegogo, Kickstarter, Rocket Hub & 1500+ more
EQUITY BASED (non-accredited):
Debt or Security
OTHER (accredited):
Angel List, Lending Club, Prosper, MicroVentures

3. ISSUER : JOBS Act
1.
Registra@on
&
Incorpora@on
in
US
2.
Names
–
Directors,
Officers,
>20%
SH
3.
Business
Descrip@on
&
BUSINESS
PLAN
4.
Prior
years
Tax
Returns
5.
Financial
Statements
6.
Use
of
Proceeds
7.
Offering
Details
&
Progress
Updates
8.
Share
price
&
methodology
(VALUATION)
9.
Ownership
&
capital
10.
Capital
(exis@ng,
offering
&
differences)

4. SEC RULES: 585 PAGES

5. SEC: 295 Questions

6. Equity/Debt Status
Ready,
Set,
Not Yet!
SEC Rule comment ended Feb 3rd, 2014
Intrastate live in several states
Photo
credit
–
Richard
Winchell

7. RULES – FORM C Disclosure
1.
Registra@on
&
Incorpora@on
in
US
2.
Names
–
Directors,
Officers,
>20%
SH
3.
Business
Descrip@on
ONLY
4.
Prior
years
Tax
Returns
5.
Financial
Statements
ONGOING
&
ANNUAL
REPORTS
6.
Use
of
Proceeds
7.
Offering
Details
&
Progress
Updates
8.
Share
price
&
methodology
(VALUATION)
9.
Ownership
&
capital
10.
Capital
(exis@ng,
offering
&
differences)

8. GAAP Financial Statements
< $100K – CEO
Ø $100K to < $500K Review
Ø $500K = AUDIT by non-PCAOB but licensed
Certified Professional Accountant (CPA) Firm
Not the same CPA as preparations

9. Devil in the Details
$XM Valuation/ $X per share price/ Total $XK
Use of Proceeds MAKE SELL OPERATE
$XK Now $XK $YK $ZK
$XK Next $XK $YK $ZK
$XK Then $XK $YK $ZK
$

10. EQUITY CHALLENGES:
Business Plan
Financials
Attestation
Valuation

11. IDENTIFY IP
PROTECT IP
PICK A PLATFORM
BUILD SOCIAL CAPITAL
CREATE A PITCH
CROWDFUNDING
APPROACH

12. Got Intellectual Property?
Why Care…
• IP theft costs $250 billion annually
• 100% of all companies have IP
• Intangible assets are often more
than 75% of company values; startups
more than 90%
Disclaimer: This is intended to be general information. Nothing in this presentation constitutes
legal advice. Please consult with an attorney before making any intellectual property protection
decisions.

13. IDENTIFY & PROTECT IP
WHY
WHO
WHAT
WHEN
WHERE
✔

14. ONLINE:
Campaign
Business Plan
Projections
Videos
Music
`
CREATE PITCH

15. Questions?"
Mary Juetten!
mejuetten@traklight.com"
@traklight @maryjuetten"
IDENTIFY. PROTECT. SUCCEED.!
"
www.traklight.com"
"
TAKE OUR FREE RISK QUIZ"