Saturday, August 30, 2014

How to become the biggest Kickstarter project - EVER...

Hat off to Coolest Cooler, the most funded Kickstarter project. (We bet the folks at Kickstarter are pretty happy, too...) This is the latest project to score big time, and moves to the top of our Top 50 Crowdfunding Campaigns Report.
So, Star Citizen has raised $51 million, but, who's counting. Both are impressive. Let's look at how they did it, as we wrote on June 2. The key takeaways remain the same:
1. You have a fan base. It is just not large enough to generate a million dollars in a day.
Coolest had a fan base, alright. This was their second bite at the crowdfunding apple. They learned from their first time out, made corrections, and tried again. Watch the video. Listen to their experience.
2. For your fan base, you also have something in your possession that will prove to them that you are all in. Think of what this might be and offer it (or a chance to posses it, if only temporarily.)
They had something that proved they were all in: their cooler and their track record.
3. Set a reasonable monetary goal, relative to what you are trying to do.
Coolest only needed $50,000 to get started. They have raised $13 million as of tonight.
4. Your entire campaign should be about something people can't get anywhere else, at any price.
Check. Can't buy this cooler anywhere else.
5. It should be for something that makes life better for someone else.
Double check. 

Monday, August 25, 2014

India becomes the first country to crowdfund a project!

"To raise funds for Prime Minister Narendra Modi’s dream project — Statue of Unity, world’s tallest statue at 182 metres — the state government has roped in the multinational IT consultant Accenture to build an IT platform for crowdfunding to raise funds for a project through the Internet.
Accenture has been granted a tender of Rs 3 crore which was floated by the Sardar Sarovar Narmada Nigam Limited (SSNNL), the state government agency executing the project. Official sources said that Accenture was the only bidder for the tender which submitted a bid of Rs 2.5 crore. Accenture has also paid the security deposit of 10 per cent of its bid to the SSNNL.
The state government has already granted the tender for the construction and maintenance of the statue to engineering giant Larsen & Toubro Limited (L&T). The government had floated a tender of Rs 2,063 crore for the project against which L&T emerged as the lowest bidder which offered its services at the cost of Rs 2,980 crore. Interestingly, to build and maintain the statue, the government had only two bids. The other bidder was a consortium of three companies led by JMC Projects India that had submitted bid of Rs 4,100 crore. Government sources said that L&T will be issued a Letter of Intent to build and maintain the statue shortly following which the company would carry out exercise for designing the project in the next 3-4 months and then construction work will begin.
The state government requires funds presently estimated to be more than Rs 2,063 crore for the project. Chief Minister Anandiben Patel, who heads the Sardar Vallabhbhai Patel Rashtriya Ekta Trust (SVPRET), the special body to execute the project, has demanded status of a national monument for the project."

Sunday, August 24, 2014

Equity Crowdfunding Legal in Texas on Sept 1.

As one article notes, "The Texas State Securities Board, led by Commissioner John Morgan, is scheduled to meet August 27, 2014 to pass the new (crowdfunding) rules slated to go into effect the first of September."

Another article states that "Texas as is now the 13th state to create its own equity crowdfunding rules and by-pass the JOBS Act. The U. S. SEC has not released or finalized the federal rules and some states see the billion dollar opportunity equity crowdfunding presents and they have decided to take the bull by the horn and jumpstart small business and economic development in their state.

Section 3(a)(11) of the 33 Act exempts from registration any security that is part of an offering sold only to persons residing within a single state if the company is also doing business in that state. So, as long as a company complies with the federal intrastate exemption, it only needs to be concerned with the state’s crowdfunding rules when conducting a crowdfunding offering; it won’t also have to comply with the federal crowdfunding law.

Texas-based businesses now have more options to raise capital. This alternative may lead to new innovations, more jobs and stronger companies that will boost the local economy. Well, at least that’s the hope. Businesses in the oil and gas, real estate, technology, art and entertainment, agriculture, food and hospitality industries may see an uptick in investment through online equity crowdfunding activities. This may be true for those business executives who are savvy enough to recognize the opportunity, create a strategy and execute said strategy."

For more information, contact

John Morgan
Securities Commissioner
State Securities Board
(512) 305-8303

Proposed Crowdfunding Forms can be found here.