cordfunding economic development strategiescrowdfunding. economic development strategies. for...
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CROWDFUNDINGECONOMIC DEVELOPMENT STRATEGIES
FOR BUILDING VIBRANT BUSINESS AND COMMUNITIES
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THE RISEOF THE CROWD INVESTMENT
CROWDFUNDING
DONATION AND REWARD-BASED
CROWDFUNDING
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From many people instead of institutional money or a small group of people
By conducting a "general solicitation" or using advertising
Often (but not always) uses the internet and/or social media to attract and interface with investors
Any way to raise money:WHAT IS CROWDFUNDING?
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• Type equation here.
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CROWDFUNDING IS A $34 BILLION INDUSTRYTHAT IS GROWING EVERY YEAR
$2.7BN IN 2012
$6.1BNIN 2013
$16.2BNIN 2014
$34.4BN IN 2015
NOW: NOT TOPPED OUT YET
Source: Massolution Crowdfunding Report, 2015 5
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Top 5 Crowdfunding States (2015)Where is North Carolina?
By Number of Offerings By Capital Raised
California California
New York New York
Florida Florida
Texas Nevada
Illinois Colorado
Economic Development GoalNorth Carolina Becomes a Top 5
Crowdfunding State
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TXNYC
Boston
FL CA
NC
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WilmingtonAsheville
Greenville
RaleighNew Bern
NC
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NC's United
Message to the Crowd
Crowdfunding Ecosystem
Puzzle
Local Lead VC Investors
Issuer Direct
Software
Reasonable Deal
Terms
Reasonable Regulations
National Platforms
Local Platforms
Marketing Firms
Legal Advice
$Smart Angels
State-Wide
Advocacy and
Support
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EQUITY
An ownership interest
DEBT
Convertible or Non-Convertible
REVENUE SHAREShort-term Royalty Stream or Profits Interest
LOTS OF WAYS TO MIX THIS
HYBRID
Special Agreement for Future Equity (SAFE)
COMMON TYPES OF "SECURITIES"11
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Start-up to Exit Financing Model and Related Securities Laws
Seed $100K to $250 Rewards or Local Public Offering (LPO)
$250K to $1 M State Crowdfunding or SEC Regulation CF
$1 M to $2 M State Crowdfunding or SEC Rule 506(c)
$2 Million to $10 Million SEC Rule 506(c)
$10 M to $20 M Regulation A Tier 1 (MezzRound)
$10M to $50M Regulation A Tier 2 (MezzRound or Moni IPO)
No $ Limit Rule 506(c)
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SECURITIES REGULATION101
STATES ALSO REGULATE
SECURITIES OFFERING
Similar to federal structure
SELLING ACTIVITIES ARE
FEDERALLY REGULATED
Initial sale and resales; broker-dealer activities
LIABILITY ATTACHES FOR FRAUDULENT ACTIVITY
Including material misstatements and
omissions
FIND AN EXEMPTION OR REGISTER THE OFFERING
Each exemption has different rules to follow
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Give Us Your Business Card We Will Send You an eBook
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BENJI TAYLOR JONESBuilding Vibrant Businesses and Communities Through Crowdfunding and other Capital Raising Strategies
P: 919.277.9142M: [email protected]
THIS IS WHAT WE DO
JIM F. VERDONIKBuilding Vibrant Businesses and Communities Through
Crowdfunding and other Capital Raising Strategies
P: 919.277.9188M: 919.616.3225
WE WROTE THE BOOK ON THIS
Let's Start a Conversation about Building Your
Community's Businesses and Economy
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