tag:blogger.com,1999:blog-40261815322514977682024-02-18T23:36:57.221-05:00Crowdfunding Now!Things of relevance to crowdfunding, including events and news.William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.comBlogger186125tag:blogger.com,1999:blog-4026181532251497768.post-86947951303376264542021-09-18T12:36:00.002-04:002021-09-18T12:36:11.648-04:00Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3H1Dgmcdr6rHLXI76b9KlnHFgv6tU18YsCSlJzyTc9hknmSHkB5DoiHoKkOiDbWOVD17QXLF57pgDcv8N44J0oWop9HDM8142X3vM5BExLVfdXWgN0ftIMyzr3Myps65WYbwwv-YR7AA/s300/Top50.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="300" data-original-width="300" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3H1Dgmcdr6rHLXI76b9KlnHFgv6tU18YsCSlJzyTc9hknmSHkB5DoiHoKkOiDbWOVD17QXLF57pgDcv8N44J0oWop9HDM8142X3vM5BExLVfdXWgN0ftIMyzr3Myps65WYbwwv-YR7AA/w640-h640/Top50.jpg" width="640" /></a></div><br />Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns Kindle Edition<p></p><p><a href="https://www.amazon.com/gp/product/B00RKK4NL0/ref=dbs_a_def_rwt_bibl_vppi_i0">https://www.amazon.com/gp/product/B00RKK4NL0/ref=dbs_a_def_rwt_bibl_vppi_i0</a></p>William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-49927318941313627102021-09-04T20:30:00.000-04:002021-09-04T20:30:54.241-04:00The JOBS Act: Crowdfunding Guide to Small Businesses and Startups <p></p><div class="separator" style="clear: both; text-align: left;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyKHYjSBgKuyfETbD-687BOst9wliQpd1O1dJU7S23NpsqWjv93j7hpDA7aiflk441ARxLWtItHuYFI7DZPLq9K3_cMAw2Q-V8066KlpYetZl3wXFRfImyDe1BR-z19Zc6Dk0e97CUAdA/s888/CoverDraft1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="888" data-original-width="663" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyKHYjSBgKuyfETbD-687BOst9wliQpd1O1dJU7S23NpsqWjv93j7hpDA7aiflk441ARxLWtItHuYFI7DZPLq9K3_cMAw2Q-V8066KlpYetZl3wXFRfImyDe1BR-z19Zc6Dk0e97CUAdA/s320/CoverDraft1.jpg" width="239" /></a></div><br />The JOBS Act: Crowdfunding Guide to Small Businesses and Startups <a href="https://www.amazon.com/dp/1484224086/ref=cm_sw_r_tw_dp_2RZS2VT5VH3ED1MMQFJR">https://www.amazon.com/dp/1484224086/ref=cm_sw_r_tw_dp_2RZS2VT5VH3ED1MMQFJR</a> via @amazon <p></p>William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-8074028700245452402020-08-15T11:32:00.001-04:002020-08-15T13:37:27.746-04:008 Tips For Launching: Crowdfunding For Startups<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhATL8XeiCQWPvogJvt7ltrs42wxQ8mXQeNtjakvfjwEF3YAIq6ZUf3dW2YkIfHhe2ifztdbO55hNcsltgfCj-J8dqgi5Dgb_13xYRFPOLdqjACWNhj3-iHtrvEc1N2uMftp6sFPx99WEo/s1600/crowdfundingflowchart2.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1237" data-original-width="1600" height="494" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhATL8XeiCQWPvogJvt7ltrs42wxQ8mXQeNtjakvfjwEF3YAIq6ZUf3dW2YkIfHhe2ifztdbO55hNcsltgfCj-J8dqgi5Dgb_13xYRFPOLdqjACWNhj3-iHtrvEc1N2uMftp6sFPx99WEo/s640/crowdfundingflowchart2.jpeg" width="640" /></a></div>
As the article notes,<br />
<br />
"For a people who revere startup culture and the idea that one can bootstrap one’s way to business success, we seem to prefer the TV version to the real thing — especially as of late. It turns out that new business creation recently approached its 40-year low. Banks are retaining their Great Recession-era tight-fistedness and the costs of education, housing and healthcare continue daily to expand beyond the ability of most Americans to keep pace...<br />
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Due to these factors — along with the legalization of equity crowdfunding accomplished via the passage of the <a href="https://www.amazon.com/gp/product/B01MT104U1/ref=dbs_a_def_rwt_bibl_vppi_i0" target="_blank">JOBS Act in 2012 </a>— crowdfunding has arisen as a means of raising startup funds. You may only be familiar with crowdfunding in the context of all the medical- and disaster-based campaigns that have been making the news lately, but crowdfunding is a viable way to raise money for businesses as well."<br />
<br />
See the full article at: <a href="https://www.merchantmaverick.com/crowdfunding-for-startups-8-tips-you-should-know-before-launching/">https://www.merchantmaverick.com/crowdfunding-for-startups-8-tips-you-should-know-before-launching/</a></div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-954256901079993682020-08-13T15:24:00.002-04:002020-08-13T15:48:33.541-04:00Crowdfunding campaigns that reach 30% of their goal in the first 48 hours dramatically increase their chance of success. <div dir="ltr" style="text-align: left;" trbidi="on">
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Crowdfunding campaigns that reach 30% of their goal in the first 48 hours dramatically increase their chance of success. Early contributions are more valuable, since they help drive interest and attention.<br />
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Create multiple touchpoints. Comparing crowdfunding campaigns:<br />
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<b>Campaign A: </b><br />
Email: 6.23 conversion rate.<br />
Facebook Group: 28.69% conversion rate.<br />
SMS 6.96% conversion rate.<br />
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<b>Campaign B: </b><br />
Email: 2.06 conversion rate.<br />
Facebook Group: None.<br />
SMS 6.74% conversion rate.<br />
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-83579123137589840572020-08-12T08:08:00.002-04:002020-08-12T08:13:57.252-04:00 Blockchain for Social Impact <div dir="ltr" style="text-align: left;" trbidi="on">
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<span data-offset-key="3nmk3-0-0" style="background-color: white; color: #14171a; font-family: , , "blinkmacsystemfont" , "segoe ui" , "roboto" , "ubuntu" , "helvetica neue" , sans-serif; font-size: 19px; white-space: pre-wrap;"><span data-text="true"><br /></span></span>
<span data-offset-key="3nmk3-0-0" style="background-color: white; color: #14171a; font-family: , , "blinkmacsystemfont" , "segoe ui" , "roboto" , "ubuntu" , "helvetica neue" , sans-serif; font-size: 19px; white-space: pre-wrap;"><span data-text="true">Blockchain for Social Impact NYC November, 2017 </span></span><span style="background-color: white; color: #1b95e0; font-family: , , "blinkmacsystemfont" , "segoe ui" , "roboto" , "ubuntu" , "helvetica neue" , sans-serif; font-size: 19px; white-space: pre-wrap;"><span data-offset-key="3nmk3-1-0"><span data-text="true"><a href="https://youtu.be/0_m5qp_iLUs">https://youtu.be/0_m5qp_iLUs</a></span></span></span><span data-offset-key="3nmk3-2-0" style="background-color: white; color: #14171a; font-family: , , "blinkmacsystemfont" , "segoe ui" , "roboto" , "ubuntu" , "helvetica neue" , sans-serif; font-size: 19px; white-space: pre-wrap;"><span data-text="true"> via </span></span><span style="background-color: white; color: #1b95e0; font-family: , , "blinkmacsystemfont" , "segoe ui" , "roboto" , "ubuntu" , "helvetica neue" , sans-serif; font-size: 19px; white-space: pre-wrap;"><span data-offset-key="3nmk3-3-0"><span data-text="true">@YouTube</span></span></span><span data-offset-key="3nmk3-4-0" style="background-color: white; color: #14171a; font-family: , , "blinkmacsystemfont" , "segoe ui" , "roboto" , "ubuntu" , "helvetica neue" , sans-serif; font-size: 19px; white-space: pre-wrap;"><span data-text="true"> </span></span></div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-71158344983739004002020-08-12T07:31:00.003-04:002020-08-12T08:11:46.543-04:00 Capital Business The Download: A crowdfunding site for black entrepreneurs. By Steven Overly. April 14, 2013<div dir="ltr" style="text-align: left;" trbidi="on">
The Download: A crowdfunding site for black entrepreneurs<br />
By Steven OverlyApril 14, 2013<br />
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William Michael Cunningham says the black community has a tradition of “passing the hat” to collect donations when a friend needs financial help. That same custom guides BlackCrowdfunding.net, a Web site Cunningham has created where black entrepreneurs can raise money to start businesses.<br />
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It’s one of many initiatives underway nationally, including several here in Washington, that aim to harness the potential of crowdfunding to benefit women and minority entrepreneurs.<br />
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For a variety of reasons, these groups have often struggled to tap more traditional financing mechanisms, such as bank loans and venture capital. Cunningham said that fact was compounded during the economic downturn as many black families lost wealth when home values soured and unemployment climbed.<br />
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“Most people start a business by taking out loans on their houses or going to friends and family and raising money that way,” Cunningham said. “If you’re in a demographic where your housing wealth has been impacted significantly negatively, then that’s less of an option with respect to raising capital.”<br />
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Crowdfunding presents a more promising option, he said. It allows an entrepreneur to raise money for his or her start-up online by collecting small investments or donations from a large number of people.<br />
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“The idea is that crowdfunding is a tool that can be used to get resources to low to moderate income communities in way that we haven’t seen before,” Cunningham said.<br />
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Cunningham will lead a four-week class on crowdfunding at the D.C. Hive, an entrepreneurial hub in Southeast D.C., beginning this week. He said the course will culminate with participants posting their ventures on BlackCrowdfunding.net.<br />
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<a href="http://wapo.st/179yxg1?tid=ss_tw%C2%A0" target="_blank">http://wapo.st/179yxg1?tid=ss_tw </a></div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-66444297179788542212020-08-10T12:07:00.002-04:002020-08-10T12:07:41.801-04:00Planning To Raise Millions Of Dollars? Consider These 3 Pieces of Advice<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2EIEdH3ydsanVlNqsb0NG6dY6rme5DUsCPUzY63qdv8QfptOBr7DqshEQGwrJBdSWpuVXrNSrSistE5Zql6bXlCq_7Ih0rHA6cZp0yYni3IPFD3TyuM52nXfQoUDSnErMaRX1Wl3762o/s950/Minority-Cash+Hands1.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="534" data-original-width="950" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2EIEdH3ydsanVlNqsb0NG6dY6rme5DUsCPUzY63qdv8QfptOBr7DqshEQGwrJBdSWpuVXrNSrSistE5Zql6bXlCq_7Ih0rHA6cZp0yYni3IPFD3TyuM52nXfQoUDSnErMaRX1Wl3762o/s640/Minority-Cash+Hands1.jpg" width="640" /></a></div><div><br /></div><div><h2 style="-webkit-font-smoothing: antialiased; background-color: white; box-sizing: inherit; color: #212121; font-size: 1.375rem; line-height: 28.6px; margin: 1rem 0px 0.5rem;"><span style="-webkit-font-smoothing: antialiased; box-sizing: inherit;">1. A verifiable track record of growth</span></h2></div><div><span style="-webkit-font-smoothing: antialiased; box-sizing: inherit;"><h2 style="-webkit-font-smoothing: antialiased; background-color: white; box-sizing: inherit; color: #212121; font-size: 1.375rem; line-height: 28.6px; margin: 1rem 0px 0.5rem;"><span style="-webkit-font-smoothing: antialiased; box-sizing: inherit;">2. Make sure the deal stands on its own</span></h2><div><span style="-webkit-font-smoothing: antialiased; box-sizing: inherit;"><h2 style="-webkit-font-smoothing: antialiased; background-color: white; box-sizing: inherit; color: #212121; font-size: 1.375rem; line-height: 28.6px; margin: 1rem 0px 0.5rem;"><span style="-webkit-font-smoothing: antialiased; box-sizing: inherit;">3. Remember that people invest in people</span></h2></span></div></span></div><div><br /></div>
Planning To Raise Millions Of Dollars? Consider These 3 Pieces of Advice via @Entrepreneur <a href="http://entm.ag/pzg1">http://entm.ag/pzg1 </a>William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-6065612622315752162020-07-30T09:57:00.000-04:002020-07-30T09:57:24.395-04:00 Don Cheadle's crowdfunding campaign for a Miles Davis biopic (called Miles Ahead)Yesterday, Don Cheadle's crowdfunding campaign for a Miles Davis biopic (called Miles Ahead) closed and was successfully funded with $343,496. He is one of quite a few Hollywood celebrities that have gone to the crowd to raise funds for a project. Spike Lee and Zack Braff are in that number as well. Both of them hosted successful campaigns. However, there are several celebrities that had unsuccessful campaigns like Melissa Joan Hart and James Franco. Most of the campaigns are film-related in nature. There has been much concern from the public as to why these celebrities would even think to go to the crowd for funding. Some have even gone as far as to say that it is downright criminal. We don't believe this is completely true.<br />
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Crowdfunding at the heart of it is a concept that has been around for many years. The civil rights' movement was essentially crowdfunded. The idea is that everyone rallies together for a particular cause and contributes as much as they can to support that cause whether that be $10, $100 or more. The use of technology has simply given growth to that idea allowing people from all over the world to be a part of something they believe in. Crowdfunding has even evolved into an alternative funding source for startups and small businesses thereby democratizing funding they were not getting before. This extends to every industry including film.<br />
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For Spike Lee's Kickstarter campaign he answered the question as to why he, "an established wealthy filmmaker," would look to Kickstarter to fund a movie by saying, "I'm an Indie Filmmaker and I will always be an Indie Filmmaker. Indie Filmmakers are always in search of financing because their work, their vision sometimes does not coincide with Studio Pictures. But I do put my own money in my films." In essence, he is merely using the same method he has always used. Zack Braff said the same thing about maintaining creative control in his crowdfunding campaign.<br />
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These celebrities are simply using the solution that crowdfunding provides: democratization of funds. They want the people to have a part in creating films they want to see made regardless of who makes them. This doesn't take away from the unknown indie filmmaker who wishes to do the same thing. If anything it should validate the crowdfunding method.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-6113714491686763872017-02-01T13:04:00.002-05:002017-02-01T13:04:27.696-05:00Feedback on the new book!<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaWr09rQpD1Uf8TU8PqECXGcGRkShEbctAxRKkzFjWzHk5V9E-0CAKYZQKoa8khN72pwUiBKTEdpLbATs7jTwMXFCoEJIGiGJM6wHMSR1JotxgyALB0yAFffjjp2KOL4a1xiN9VhYuT0o/s1600/CoverDraft1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaWr09rQpD1Uf8TU8PqECXGcGRkShEbctAxRKkzFjWzHk5V9E-0CAKYZQKoa8khN72pwUiBKTEdpLbATs7jTwMXFCoEJIGiGJM6wHMSR1JotxgyALB0yAFffjjp2KOL4a1xiN9VhYuT0o/s320/CoverDraft1.jpg" width="238" /></a><span style="background-color: white;"><span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;">I thought I would share some initial feedback I have received on the new book: </span></span><span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;">The JOBS Act: Crowdfunding Guide to Small Businesses and Startups 2nd ed.</span><span style="background-color: white;"><span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;"> </span></span><span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;"><a href="https://www.amazon.com/JOBS-Act-Crowdfunding-Businesses-Startups/dp/1484224086">https://www.amazon.com/JOBS-Act-Crowdfunding-Businesses-Startups/dp/1484224086</a></span><br />
<span style="background-color: white;"><span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;"><br /></span></span>
<span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;">"Definitely clear. I really enjoyed the depth of substance on the Act. I also liked the enthusiasm for crowdfunding w/o any of the manic cheerleading seen elsewhere (impact investing has the same problem - IMHO). Balance goes a long way in my view and you reminding readers that crowdfunding is real work is very important.</span><br />
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<span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;"><span style="background-color: white;"></span></span><br />
<span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;">Scott S.</span><br />
<span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;"><br /></span>
<span style="color: #222222; font-family: arial, sans-serif; font-size: x-small;">Thank you, Scott!</span></div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-15658276473423830012017-01-08T10:43:00.000-05:002017-01-08T10:43:02.709-05:00Google searches for crowdfunding up 37% in past week<div dir="ltr" style="text-align: left;" trbidi="on">
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Google searches for crowdfunding up 37% in past week<span class="Apple-tab-span" style="white-space: pre;"> </span><br />
Worldwide-Wednesday, December 28, 2016 - Wednesday, January 4, 2017<br />
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-73575436081484993382016-12-29T18:36:00.001-05:002016-12-29T18:36:43.876-05:00Google searches for crowdfunding up 17% in past week<div dir="ltr" style="text-align: left;" trbidi="on">
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<tr><td style="color: #1f1f1f; font-family: arial, sans-serif; font-size: 22px; margin: 0px;">Google searches for <a data-saferedirecturl="https://www.google.com/url?hl=en&q=http://www.google.com/appserve/mkt/p/fLxpowOXSh0oNm2oHjaoHQcwoBkdgjMItpbWQni_6CUcyhBuNLOjpDKr4SoxK3rpsyifEL1V70ctJ8zCcpeUdcAezgywTw%3D%3D&source=gmail&ust=1483140620533000&usg=AFQjCNH6-nq004Md0Qw36eBFG71mJRka0A" href="http://www.google.com/appserve/mkt/p/fLxpowOXSh0oNm2oHjaoHQcwoBkdgjMItpbWQni_6CUcyhBuNLOjpDKr4SoxK3rpsyifEL1V70ctJ8zCcpeUdcAezgywTw==" style="color: #427fed; text-decoration: none;" target="_blank">crowdfunding</a> up 17% in past week</td><td style="font-family: arial, sans-serif; margin: 0px; vertical-align: top; width: 90px;"><div style="float: right;">
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<tr><td style="margin: 0px; padding-right: 6px;" width="16"><a data-saferedirecturl="https://www.google.com/url?hl=en&q=https://www.google.com/appserve/mkt/p/vq037Gaan0mLDvw-6e93pPjD-7Swg1kbzgRI3iqfto0aBMoDkWsXtTptYHe7NbixBDnGa5wVqkqpeR5cNQddtusLKgTYrzTOfRsrxA3Qzz_En2Xhx3VD27Lr3jsslInYKUnztMqzLUcPAx9LsdZBcF5x3bFPy9zEtaKYIi8fj9qrrld8UHJ4CSa033XMWM5drQM9hZoHu9x8WUxKimXD6V0gmtnMV39xjBhBI82k7sZ-vxmgibNLSC-h1L1oFcxH9rgXmd5Xw99Gtlmi1bmvTYtsvc6ImICf_WbiU9O_CIAFrgne9iqdvQC85Hy9mYxc-UI%3D&source=gmail&ust=1483140620533000&usg=AFQjCNFAAbZbKT0AorNhILQUjSsWOvBIRw" href="https://www.google.com/appserve/mkt/p/vq037Gaan0mLDvw-6e93pPjD-7Swg1kbzgRI3iqfto0aBMoDkWsXtTptYHe7NbixBDnGa5wVqkqpeR5cNQddtusLKgTYrzTOfRsrxA3Qzz_En2Xhx3VD27Lr3jsslInYKUnztMqzLUcPAx9LsdZBcF5x3bFPy9zEtaKYIi8fj9qrrld8UHJ4CSa033XMWM5drQM9hZoHu9x8WUxKimXD6V0gmtnMV39xjBhBI82k7sZ-vxmgibNLSC-h1L1oFcxH9rgXmd5Xw99Gtlmi1bmvTYtsvc6ImICf_WbiU9O_CIAFrgne9iqdvQC85Hy9mYxc-UI=" style="color: #1155cc; text-decoration: none;" target="_blank"><img alt="Google Plus" border="0" class="CToWUd" height="16" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEgFtaS1881COW7RQwJWOZzuH7dgO6JcIAIcdrzd0g8iB0p2fuJiNG-nSTLKnNn3X9s_-Pr4AFG_xgU7yjKDsjSAMaBQRHu89pex9EZtZWlOPDFr_xGcLPjd1fYEO4zLRPzk7vQxBCZzA6UAOBtLisY4u4NaEA=s0-d-e1-ft" width="16" /></a></td><td style="margin: 0px; padding-right: 6px;" width="16"><a data-saferedirecturl="https://www.google.com/url?hl=en&q=https://www.google.com/appserve/mkt/p/4yIoyEZAvjkjHq_pdbvYVtSnwHzonpFyX8q80T3uMlLyfB0MwPGjLeMK9Xq9Pixi2FXCTt5ROkyoVC7Zss7SBSaneYnLaNnDcvsDOxzmaW0YOsP5UCMugAOl35r8QOiIn_JtL4jWX24dEQ7KyhYhSLKxf3CICK7qyU5N8mwQ2Z-7I14UAjN82OvQ6B0tqbdR1T9dNdGKi_ETPXcvpBXDf46VYW3NPA4kH0S7APUaiygTUd5vvUv_GuhGZQ8vK1qc5AMFAcyEzy_5GEx8NTuXzpW1w7_0UhsSdR8X-1wowZOxiyeszNLQ25DBmdLVFEcQ-u1kDjgg_Sb3QaTJ-kMt9g%3D%3D&source=gmail&ust=1483140620533000&usg=AFQjCNHGtwKfoZ3loESjosrofhorRDl5gQ" href="https://www.google.com/appserve/mkt/p/4yIoyEZAvjkjHq_pdbvYVtSnwHzonpFyX8q80T3uMlLyfB0MwPGjLeMK9Xq9Pixi2FXCTt5ROkyoVC7Zss7SBSaneYnLaNnDcvsDOxzmaW0YOsP5UCMugAOl35r8QOiIn_JtL4jWX24dEQ7KyhYhSLKxf3CICK7qyU5N8mwQ2Z-7I14UAjN82OvQ6B0tqbdR1T9dNdGKi_ETPXcvpBXDf46VYW3NPA4kH0S7APUaiygTUd5vvUv_GuhGZQ8vK1qc5AMFAcyEzy_5GEx8NTuXzpW1w7_0UhsSdR8X-1wowZOxiyeszNLQ25DBmdLVFEcQ-u1kDjgg_Sb3QaTJ-kMt9g==" style="color: #1155cc; text-decoration: none;" target="_blank"><img alt="Facebook" border="0" class="CToWUd" height="16" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEhcm_56eHUP3wYN-srmF2ukwACH4MidsqqR3X2cldEGMHdiw79dEjsYgL24lPXmEB6rvL43mB9T5L0EIh1TIv6gDFYSjyU8MC2XApNOxroU31NA6jjTDWqkQo-qQu7kFPHKAJd05EWeOxvSqTQ5iGQUnoNEsQ=s0-d-e1-ft" width="16" /></a></td><td style="margin: 0px; padding-right: 6px;" width="16"><a data-saferedirecturl="https://www.google.com/url?hl=en&q=https://www.google.com/appserve/mkt/p/w7-TfITqOXh0dt6JXeSGg6IF4k-q5GJ9nIDTkRk79CIFkj8K5dqgMrdFUhaO8nyHPAn00omqDnMYSqGBHFy1pHoqtXrKBSEiaUbGWEz9SU5cBqy6MADpMD6QzXQcaab__qhgOOvxS8yqXFl2JrcOSOEvDDTwORxCQgZJDjXdzKPJCIkL2gfunxJjs2N2nBejxlHSwi1jmtgPOu7PcookXDejVT3eKr4p8YfFRCUdaeZbA2LTA5lmaq8CDnxRZAtf9PnVTzQ2Dqp3UuhC6_DPYgaJI_takFDY6mTuO2A6z3QpsUaQTFnlxqh75AdBDwu-fCduOJqqRGsg3YjKBbT7YoJmOap_gfuIm83-1KM1aEFpV2WzomXbZw5S28UQz8pEwAO6QT-vhm30_PUfJV8yMwbgCy_yFNBBQdb2_98_HhzjWqiF7c91ZZaI_XZyDikIG80TNw-LdQwTBvLaltkSnm3cTzb0j0yXfgfQqgdcd6RbTF43gJA-&source=gmail&ust=1483140620533000&usg=AFQjCNG8_AL2NOT4vidd7VMmv_LLRIX8pg" href="https://www.google.com/appserve/mkt/p/w7-TfITqOXh0dt6JXeSGg6IF4k-q5GJ9nIDTkRk79CIFkj8K5dqgMrdFUhaO8nyHPAn00omqDnMYSqGBHFy1pHoqtXrKBSEiaUbGWEz9SU5cBqy6MADpMD6QzXQcaab__qhgOOvxS8yqXFl2JrcOSOEvDDTwORxCQgZJDjXdzKPJCIkL2gfunxJjs2N2nBejxlHSwi1jmtgPOu7PcookXDejVT3eKr4p8YfFRCUdaeZbA2LTA5lmaq8CDnxRZAtf9PnVTzQ2Dqp3UuhC6_DPYgaJI_takFDY6mTuO2A6z3QpsUaQTFnlxqh75AdBDwu-fCduOJqqRGsg3YjKBbT7YoJmOap_gfuIm83-1KM1aEFpV2WzomXbZw5S28UQz8pEwAO6QT-vhm30_PUfJV8yMwbgCy_yFNBBQdb2_98_HhzjWqiF7c91ZZaI_XZyDikIG80TNw-LdQwTBvLaltkSnm3cTzb0j0yXfgfQqgdcd6RbTF43gJA-" style="color: #1155cc; text-decoration: none;" target="_blank"><img alt="Twitter" border="0" class="CToWUd" height="16" src="https://blogger.googleusercontent.com/img/proxy/AVvXsEiPfcKdmhyphenhyphenW7i7NYnTGs6j4Sa6r9t5D9CmgSu12EYyTk5JLFMA-M8J7y5F9zsaUD9cItqJGaM6jD9XvdQGWevlKy9ZpsC_lFKLjQxogF5P7feIDKELLnv06rnPf1WuXNCd37Nm-8GYAfEofHCyUY00QxK-UkQ=s0-d-e1-ft" width="16" /></a></td></tr>
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Worldwide<span style="padding: 0px 5px;">-</span>Tuesday, December 20, 2016 - Tuesday, December 27, 2016</div>
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<img src="https://lh3.googleusercontent.com/ZcfBZa5vdGMdbizp8BdctnEhF1chIwxRMYKYY3oXvN5g7RAZInvTw9ekLIxoog" /></div>
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-84775801660095858722016-12-28T11:58:00.002-05:002016-12-28T12:03:33.900-05:002016's Most Innovative Projects on @Indiegogo <div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: center;">
2016's Most Innovative Projects collection on @Indiegogo:<br />
<a href="https://www.indiegogo.com/campaign_collections/2016-s-most-innovative-projects">https://www.indiegogo.com/campaign_collections/2016-s-most-innovative-projects</a></div>
<div class="separator" style="clear: both; text-align: center;">
<img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjuQDCAZ1Tn41FFdoudptZs7LcwlK-iU8pCvk33GvpjTHD_nIns9X2pE27-2b51yWwf-dEiZ9MnQoRQr168Y3ETmFCPEI8FKCJ3BHgrrtUgXiYGAF4uKfttvvoNsJPn5NruMhynFKJ0ebo/s640/Indiegogo2016MostInnovative.png" width="484" /><a href="https://www.indiegogo.com/campaign_collections/2016-s-most-innovative-projects" target="_blank">https://www.indiegogo.com/campaign_collections/2016-s-most-innovative-projects</a></div>
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-55612467627589767812016-07-18T20:20:00.001-04:002016-07-18T20:28:09.916-04:00Agenda for July 19 Meeting of the SEC Advisory Committee on Small and Emerging Companies<div dir="ltr" style="text-align: left;" trbidi="on">
AGENDA<br />
<br />
9:30 a.m.<br />
<br />
Co-Chairs Stephen Graham and Sara Hanks call meeting to order<br />
<br />
Introductory Remarks by Chair Mary Jo White and Commissioner Kara Stein<br />
<br />
10:00 a.m.<br />
<br />
Consider “Accredited Investor” Definition Recommendation as discussed at May 18th Meeting<br />
<br />
10:30 a.m.<br />
<br />
<ul style="text-align: left;">
<li>Regulation A+ Update and Review</li>
<li><br /></li>
<li>Update from SEC Division of Corporation Finance staff on the usage of Regulation A+ in its first year</li>
<li><br /></li>
<li>Presentation from Paul Elio, CEO and Chairman of Elio Motors Inc., a company that conducted a Regulation A+ offering</li>
<li><br /></li>
<li>Discussion by Committee Members</li>
</ul>
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12:00 p.m.<br />
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Lunch Break<br />
<br />
1:30 p.m.<br />
<br />
Regulation A + (Continued)<br />
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Presentation by Daniel Zinn, General Counsel, OTC Markets Group regarding secondary trading of Regulation A+ shares<br />
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2:30 p.m.<br />
<br />
<ul style="text-align: left;">
<li>SEC Proposal to Amend the “Smaller Reporting Company” Definition</li>
<li><br /></li>
<li>Briefing from SEC Division of Corporation Finance staff regarding the Commission’s proposal issued June 27, 2016 to amend the “Smaller Reporting Company” Definition</li>
<li><br /></li>
<li>Discussion by Committee Members</li>
</ul>
<br />
3:30 p.m.<br />
<br />
Adjournment</div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-11372641723251679882016-07-09T14:28:00.003-04:002016-07-09T14:28:38.130-04:00The Fix Crowdfunding Act<div dir="ltr" style="text-align: left;" trbidi="on">
The summary below was written by the Congressional Research Service, a nonpartisan division of the Library of Congress.<br />
<br />
Fix Crowdfunding Act<br />
<br />
This bill amends the Securities Act of 1933 (Act) to increase from $1 million to $5 million the aggregate amount of securities sold to all investors by an issuer that qualify for the crowdfunding exemption from certain prohibitions relating to interstate commerce and the mails.<br />
<br />
The bill amends the Jumpstart Our Business Startups Act (JOBS Act) to declare that a crowdfunding portal shall have a reasonable basis for disqualifying issuers from offering securities through the portal if through a background check it has found that an issuer has made an untrue statement of a material fact, omitted to state a material fact necessary to avoid making misleading statements, or engaged in fraud or deceit. No intermediary (crowdfunding portal) shall be liable for an issuer's material misstatements and omissions unless, in connection with the offer or sale of a security, it knowingly made or omitted such statements or engaged in fraud or deceit.<br />
<br />
The bill amends the Securities Exchange Act of 1934 to exempt crowdfunding securities transactions from its registration requirements.<br />
<br />
The Investment Company Act of 1940 is amended to exempt from the definition of investment company, and so exclude from coverage by that Act, any issuer that, for the purpose of making a crowdfunding offering, holds the securities of not more than one issuer eligible to offer securities (a single-purpose fund).<br />
<br />
The bill allows single-purpose funds to sell and offer for sale securities according to crowdfunding requirements, and considers them venture capital funds.<br />
<br />
The Act is further amended to permit an issuer, before commencing a crowdfunding offering, to solicit non-binding indications of interest from potential investors in the prospective offering if:<br />
<br />
no investor funds are accepted by the issuer, and any material change in the information furnished during the actual offering from the information furnished during the solicitation of interest is highlighted to potential investors in the information filed with the Securities and Exchange Commission. No enforcement action may be brought before May 16, 2021, against crowdfunding portals established under the JOBS Act.</div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-13533797449467357622016-03-05T10:31:00.000-05:002016-03-05T10:31:20.934-05:00Talk on Crowdfunding at Operation PUSH Wall Street Project<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://youtu.be/1aM-IKPPJeg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;" target="_blank"><img border="0" height="296" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiTBqiHNPxQBAhHFNan8Vk7UZyM2nm3RSMMfzAB1BghsexwyDFb82h3EmGqdDrQ2QujAMS-nWSw63WO_Lhe9J53G5YXLDYpGZRh8cDZ8tTQRLNe49-__YwWuCii0lVfhKOaDpaLJ-8ttww/s400/OpPushWSS2016Front.jpg" width="400" /></a></div>
<a href="https://youtu.be/1aM-IKPPJeg">https://youtu.be/1aM-IKPPJeg</a><br />
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<a class="_58cn" data-ft="{"tn":"*N","type":104}" href="https://www.facebook.com/hashtag/crowdfunding?source=feed_text&story_id=1134492419918352" style="background-color: white; color: #3b5998; cursor: pointer; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; text-decoration: none;"><span aria-label="hashtag" class="_58cl" style="background-color: white; color: #627aad; cursor: pointer; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; text-decoration: none;">#</span><span class="_58cm" style="background-color: white; color: #3b5998; cursor: pointer; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; text-decoration: none;">crowdfunding</span></a><span style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px;"> session at @WallStreetProj </span><a class="_58cn" data-ft="{"tn":"*N","type":104}" href="https://www.facebook.com/hashtag/wspes2016?source=feed_text&story_id=1134492419918352" style="background-color: white; color: #3b5998; cursor: pointer; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; text-decoration: none;"><span aria-label="hashtag" class="_58cl" style="background-color: white; color: #627aad; cursor: pointer; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; text-decoration: none;">#</span><span class="_58cm" style="background-color: white; color: #3b5998; cursor: pointer; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; text-decoration: none;">WSPES2016 </span></a><br />
<span class="_58cm" style="background-color: white; color: #3b5998; cursor: pointer; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px;"><a class="_58cn" data-ft="{"tn":"*N","type":104}" href="https://www.facebook.com/hashtag/wspes2016?source=feed_text&story_id=1134492419918352" style="color: #3b5998; cursor: pointer; line-height: 19.32px; text-decoration: none;"></a></span><span style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px;"></span><a href="https://youtu.be/1aM-IKPPJeg" rel="nofollow" style="background-color: white; color: #3b5998; cursor: pointer; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; text-decoration: none;" target="_blank">https://youtu.be/1aM-IKPPJeg</a><span style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px;"> via @YouTube</span></div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-62883166801974502482016-03-04T21:19:00.004-05:002016-03-04T21:19:46.935-05:00Keys to Crowdfunding: "high quality photos and video, prior crowdfunding success, positive comments from backers..."<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVV_qb_7Tjs9gtaUkIpI0YyETytl6DCuyaLJVQdu3vvTtXgZifpYD-fck1glV31-lLqqXNgbXOGwYbM20t3lyuiLh1X9OPMG9D-3yl8psNwYhq_y2sbpe9v-PdejLZSA96yirGOP3StIA/s1600/SuccessfulKickstarterMar2015.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="280" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVV_qb_7Tjs9gtaUkIpI0YyETytl6DCuyaLJVQdu3vvTtXgZifpYD-fck1glV31-lLqqXNgbXOGwYbM20t3lyuiLh1X9OPMG9D-3yl8psNwYhq_y2sbpe9v-PdejLZSA96yirGOP3StIA/s400/SuccessfulKickstarterMar2015.jpg" width="400" /></a></div>
We note with interest a recent study from the University at Buffalo School of Management that shows "high quality photos and video, previous crowdfunding success and positive comments from backers are the keys to a successful campaign."<br />
<br />
This syncs with what we uncovered in our two books, "<a href="http://www.amazon.com/The-JOBS-Act-Crowdfunding-Businesses/dp/143024755X" target="_blank">The JOBS Act: Crowdfunding for Small Businesses and Startups</a>" and in "<a href="http://www.amazon.com/Top-50-Crowdfunding-Campaigns-Successful-ebook/dp/B00RKK4NL0/ref=asap_bc?ie=UTF8" target="_blank">Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns</a>."<br />
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According to news reports, the University at Buffalo School of Management study "found that by receiving these signals, potential investors..gain valuable information that motivates them to participate and increases the likelihood of a project achieving its funding goal."<br />
<br />
One part of the analysis we found in error, however. One of the authors of the study was quoted as saying that<br />
<br />
"These sources are important because backers of crowdfunded projects have less access to information than typical private equity investors..private equity investors follow a stringent due diligence process to assess the quality of a startup, while crowdfunding backers rely more on the information on the campaign's webpage."<br />
<br />
This shows a lack of understanding about crowdfunding and private equity firms, who lose 80% of the funds they invest, something that would not occur if they really followed "stringent due diligence process(es) to assess the quality of a startup."<br />
<br />
For more, see: "Top 5 Reasons People Contribute to Crowdfunding Campaigns" by @CreativeInv on @LinkedIn <a href="https://www.linkedin.com/pulse/20140715171927-3448802-top-5-reasons-people-contribute-to-crowdfunding-campaigns">https://www.linkedin.com/pulse/20140715171927-3448802-top-5-reasons-people-contribute-to-crowdfunding-campaigns</a><br />
<br />
"How To Crowdfund Update" by @CreativeInv on @LinkedIn <a href="https://www.linkedin.com/pulse/how-crowdfund-update-william-michael-cunningham-am-mba">https://www.linkedin.com/pulse/how-crowdfund-update-william-michael-cunningham-am-mba</a><br />
<br />
and<br />
<br />
"How to become the biggest Kickstarter project..EVER!" by @CreativeInv on @LinkedIn <a href="https://www.linkedin.com/pulse/20140831023841-3448802-how-to-become-the-biggest-kickstarter-project-ever">https://www.linkedin.com/pulse/20140831023841-3448802-how-to-become-the-biggest-kickstarter-project-ever</a><br />
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-78590483757801873732015-11-21T17:59:00.002-05:002015-11-21T17:59:51.189-05:00SEC to veterans, women and minorities: Fahgettaboudit!<div dir="ltr" style="text-align: left;" trbidi="on">
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I attended the Government-Business Forum on Small Business Capital Formation held at the US Securities and Exchange Commission on November 19th. </div>
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According to the SEC, one of the Forum's goals "is to .. highlight perceived unnecessary impediments to small business capital formation and address whether they can be eliminated or reduced. Each forum seeks to develop recommendations for government and private action to improve the environment for small business capital formation, consistent with other public policy goals, including investor protection. Participants in the Forum typically have included small business executives, venture capitalists, government officials, trade association representatives, lawyers, accountants, academics and small business advocates..the format of the Forum typically has emphasized small interactive breakout groups developing recommendations for governmental action." </div>
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Let me just say that the Forum was a <a href="https://youtu.be/kOGS-DdLYe0" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; color: #8c68cb; font-family: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">confirmation of some of my earlier statements</a> about the SEC.</div>
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Participants at the sessions I attended consisted mainly of lawyers, with the occasional right wing lobbying group (Heritage Foundation) thrown in to make sure the interests of low and middle income citizens went unrepresented.</div>
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I am not exaggerating. At one point in a breakout session to develop recommendations concerning crowdfunding under Title III and Title IV of the<a href="http://www.amazon.com/The-JOBS-Act-Crowdfunding-Businesses/dp/143024755X" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; color: #8c68cb; font-family: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">Jobs Act</a>, a collection of lawyers forwarded a proposal to let foreigners use crowdfunding in support of EB-5 visas. The EB-5 visa "provides a method of obtaining a green card for foreign nationals who invest money in the United States."</div>
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While I have nothing against foreigners who want to invest in the US, during the session I noted that Title VII of the JOBS Act seeks to provide opportunities for veterans, women and minorities, and that the SEC may want to consider this first, since it is, you know, the law. Title VII says "The Securities and Exchange Commission shall provide online information and conduct outreach to inform small and medium sized businesses, women owned businesses, veteran owned businesses, and minority owned businesses of the changes made by this Act." </div>
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The JOBS Act actually restricts foreign use of domestic crowdfunding, a good thing in that it lowers fraud and gives native US Citizens a chance to benefit from American crowdfunding first.</div>
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Unfortunately, the lawyers in the room were having none of it. Aided by a feckless SEC staff person and a moderator who was himself a lawyer (not a small business person) proposals to reinforce the SEC's commitment to veterans, women and minorities were voted down, in favor of a recommendation giving foreigners the right to use domestic JOBS Act crowdfunding in support of the EB-5 visa program. </div>
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You just can't make this stuff up.</div>
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-9758289304726709882015-10-30T16:41:00.001-04:002015-10-30T16:45:04.069-04:00Securities and Exchange Commission says "Go ahead, make my day..."<div dir="ltr" style="text-align: left;" trbidi="on">
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As we <a href="https://www.linkedin.com/pulse/sec-poised-implement-title-iii-jobs-act-cunningham-am-mba?trk=pulse_spock-articles" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; color: #8c68cb; font-family: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">forecast</a>, today (10/30/15) the US Securities and Exchange Commission (SEC) voted 3 to 1 to allow small companies to raise up to $1 million online. Small firms and startups can now solicit anyone, regardless of their location, net worth or wealth, thereby giving small investors a chance to own what may be the next Facebook or Google (or not). </div>
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More likely, it means the day care center or restaurant down the street can now offer ownership stakes, or shares of stock, to their most supportive customers and clients. This is great news for women and Black-owned firms, which tend to be small and capital starved. The SEC vote approving rules implementing <a href="http://www.amazon.com/The-JOBS-Act-Crowdfunding-Businesses/dp/143024755X" rel="nofollow" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; color: #8c68cb; font-family: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">Title III of the JOBS Act</a> means greater opportunity for minority, women and veteran firms to obtain equity funding.</div>
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In addition to allowing firms to raise capital from anyone via a crowdfunding platform (a Financial Industry Regulatory Authority or FINRA registered internet website set up specifically for this purpose), the SEC also approved rules making it easier for companies to sell stock in small or startup companies to potential investors residing in the state in which the startup (or small firm) is located. This is another potentially beneficial capital raising option for Black owned firms, which tend to be hyper-local.</div>
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The new rules are not without drawbacks, however. Crowdfunding platforms will be allowed to accept stock in lieu of payment for capital raising services provided, so small firms will have to watch out for crowdfunding platforms that charge, say 50% of your stock to help you get funded. Given the lack of brokerage firm ethics we saw in the years leading up to the financial crisis, this is serious issue, but the potential for good far outweighs the downside.</div>
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Raising equity, or selling ownership shares, is a very difficult and complicated task, mainly because of the convoluted rules governing how you can do so. Today's SEC action makes it a little easier to get the capital needed to launch (or enlarge) your firm.</div>
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-79074661887770531882015-10-27T12:05:00.001-04:002015-10-29T19:54:51.307-04:00SEC to vote on Title III of the JOBS Act this Friday!<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">"Notice is hereby given, pursuant to the provisions of the Government </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">in the Sunshine Act, Pub. L. 94-409, that the Securities and Exchange </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">Commission will hold an Open Meeting on Friday, October 30, 2015 at </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">10:00 a.m., in the Auditorium, Room L-002. </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">The subject matter of the Open Meeting will be:</span><br />
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<span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">The Commission will consider whether to adopt rules and forms related </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">to the offer and sale of securities through crowdfunding under Section </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">4(a)(6) of the Securities Act of 1933, as mandated by Title III of the </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">Jumpstart Our Business Startups Act. </span><a href="http://www.sec.gov/news/openmeetings/2015/ssamtg103015.htm" rel="noreferrer" style="background-color: white; color: #1155cc; font-family: arial, sans-serif; font-size: 12.8px;" target="_blank">http://www.sec.gov/news/<wbr></wbr>openmeetings/2015/<wbr></wbr>ssamtg103015.htm</a> "<br />
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<span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">Having said, in March, 2015 that the SEC wasn't going to do Title III, </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">we changed our minds last week and declared that the SEC was going to </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">approve Title III after all.</span><br style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;" /><a href="https://www.linkedin.com/pulse/sec-poised-implement-title-iii-jobs-act-cunningham-am-mba?trk=pulse_spock-articles" rel="noreferrer" style="background-color: white; color: #1155cc; font-family: arial, sans-serif; font-size: 12.8px;" target="_blank">https://www.linkedin.com/<wbr></wbr>pulse/sec-poised-implement-<wbr></wbr>title-iii-jobs-act-cunningham-<wbr></wbr>am-mba?trk=pulse_spock-<wbr></wbr>articles</a><br style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;" /><br style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;" /><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">We think they will also announce new policies that allow them to move </span><span style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 12.8px;">quickly when equity crowdfunding misconduct is identified.</span></div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-65218719795814075182015-10-26T14:55:00.001-04:002015-10-26T14:55:35.257-04:00Seven things crowdfunders should know...<div dir="ltr" style="text-align: left;" trbidi="on">
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-12718531253899781132015-10-22T17:08:00.001-04:002015-10-22T17:08:05.093-04:00SEC to implement Title III of the JOBS Act<div dir="ltr" style="text-align: left;" trbidi="on">
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Yesterday, the U.S. Securities and Exchange Commission (SEC) announced "that it will hold its annual Government-Business Forum on Small Business Capital Formation at its Washington D.C. headquarters on Nov. 19, 2015. The morning session of the forum will feature panel discussions on exempt and registered offerings occurring after the passage of the JOBS Act." You can register for the forum <a href="https://www.sec.gov/forms/registration-sbf" rel="nofollow" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; color: #8c68cb; font-family: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">here</a>. </div>
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We think the SEC will use this opportunity to release the final Title III crowdfunding rules. As I describe in my <a href="http://www.amazon.com/The-JOBS-Act-Crowdfunding-Businesses/dp/143024755X" rel="nofollow" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; color: #8c68cb; font-family: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">book on the JOBS Act</a>, small businesses and startups will be able to raise up to $1 million in equity (or debt) funding online via what are called Crowdfunding Platforms―online communities and websites. Imagine an eBay-like site that allows you to post your idea for a commercial venture online and then allows investors to purchase equity shares or stakes in it. </div>
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Recently, two state securities regulators (Montana and Massachusetts) brought a suit in the United States Court of Appeals for the District of Columbia Circuit against the SEC to <em style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; font-family: inherit; font-stretch: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">block</em> the rules implementing Title IV of the JOBS Act. Title IV allows companies to raise up to $50 million. We were <a href="http://www.prlog.org/12499745-william-michael-cunningham-files-amicus-brief-in-galvin-sec-15-1150.html" rel="nofollow" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; color: #8c68cb; font-family: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: none; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">recognized as a "Friend of the Court"</a> in the action, and suggested the Court vacate the Title IV rule, subject to the SEC immediately implementing Title III of the JOBS Act.</div>
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I think they will use the Forum as an opportunity to do so. Now, I am not suggesting that just because I urged a Court to tie their Title IV decision to Title III, the SEC will act. (I don't have that kind of influence AT ALL.) </div>
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On Wednesday, September 16th, I spoke at a roundtable on crowdfunding at the Embassy of Italy in DC: </div>
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Also speaking was the Special Counsel for the SEC in charge of implementing Title III. He did not say anything that could be directly interpreted as supporting my statement, but he did acknowledge that the SEC is very, very late with implementation: under the JOBS Act, they were to have Title III regulations in place by 12/31/2012. </div>
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I also noticed that <em style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; font-family: inherit; font-stretch: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">the summary of the Title III rule on Reginfo.gov has a date listed for the implementation of final rules governing</em> <em style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; font-family: inherit; font-stretch: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Title III: <strong style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; font-family: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">Final Action</strong></em><strong style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; font-family: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"> -<em style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; box-sizing: border-box; font-family: inherit; font-stretch: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">10/00/2015.</em></strong></div>
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I think this means they will announce the final rules on the 19th of November, but, of course, I could be wrong.</div>
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-2878999409776666522015-10-14T14:37:00.000-04:002015-10-14T15:56:00.963-04:00Wayan Brothers Come to Howard University...<div dir="ltr" style="text-align: left;" trbidi="on">
I attended a <a href="https://twitter.com/HowardU_ICE" target="_blank">HowU Innovate</a> panel on how to raise money for your startup. The invitation encouraged people to "Come out and hear from some of the best minds in the field."<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3ausMElcynvlICbw-jR1cc3ycLhWjbKZtSk-pELSsHUX1phxWCdIdJ_G4uFLmsR6MX-mK7dAHjrwpLnM-yL8Fgt1W1hnTU0L9pHWZHjMHRG7XjJ-fNvFN0RzSO1A9207YibMX_7-6iUk/s1600/HU+Ice+101315a.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="238" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh3ausMElcynvlICbw-jR1cc3ycLhWjbKZtSk-pELSsHUX1phxWCdIdJ_G4uFLmsR6MX-mK7dAHjrwpLnM-yL8Fgt1W1hnTU0L9pHWZHjMHRG7XjJ-fNvFN0RzSO1A9207YibMX_7-6iUk/s320/HU+Ice+101315a.jpg" width="320" /></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjk-12vfvF64mZo2XE4CLWC3v472cp_ARiQ4AdA-muaabJ6jsL6JgQ2aNEwgYf0Pz9NWwtbwlhoRihOtEi0NDUTyztPK5HStps_cNO2EJvxJQ-vvU-tFVkPxgzWiB-f9j9fR0cN2RNbrFU/s1600/ICE+Invite+101315.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjk-12vfvF64mZo2XE4CLWC3v472cp_ARiQ4AdA-muaabJ6jsL6JgQ2aNEwgYf0Pz9NWwtbwlhoRihOtEi0NDUTyztPK5HStps_cNO2EJvxJQ-vvU-tFVkPxgzWiB-f9j9fR0cN2RNbrFU/s320/ICE+Invite+101315.jpg" width="224" /></a></div>
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While not super well attended, I did find it interesting. There was much good information, but it seemed a less edgy, more conventional rehash of a talk I gave at Howard in April and of the talk I gave at the 2015 National Black MBA Association Washington DC Chapter (NBMBAA-DC) Entrepreneurship Expo. My talk, titled “Black People and Venture Capital” is on video below.<br />
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<span style="text-align: left;">One person sent me the photo at left in response to a photo I tweeted out during the meeting. </span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEirzYYp_Y7oCxWAVHJUoag5wEw4sk2tSboO4R_0mQU1HAWBjtNoXN_pUQRP14-oR0DzIdxxBVp6HGO-veaLvp33VeqKAYDvVUrSofG2mR7DhXbrebdm6MXtY2WpB44bLyD3VbQzPdtyY4U/s1600/WayansSmothers.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEirzYYp_Y7oCxWAVHJUoag5wEw4sk2tSboO4R_0mQU1HAWBjtNoXN_pUQRP14-oR0DzIdxxBVp6HGO-veaLvp33VeqKAYDvVUrSofG2mR7DhXbrebdm6MXtY2WpB44bLyD3VbQzPdtyY4U/s320/WayansSmothers.jpg" width="320" /></a></div>
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Now, that's a little harsh, but I understand why they sent it. Much of the advice was super conventional and rests on the fiction that Black people can actually get money from VC's.<br />
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At one point, the person on the panel who works for a VC referenced the small number of Black professionals he knows, implying that there were only a handful of Black people working for VC firms. This is false. According to our database, there are probably 250 Black men and women in the field now. The issue is not having one more Black person with a job at a VC firm. The issue is performance. <a href="http://elitedaily.com/money/venture-capitalists-still-overwhelmingly-fund-white-male-entrepreneurs-minorities-women/" target="_blank">One study</a> found that "while less than 1 percent of venture-capital-backed company founders were African American and 12 percent were Asian, 83 percent had a racial composition that was entirely Caucasian."<br />
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Someone reminded me of the speech <a href="http://www.vcstar.com/decodedc/podcast/lyndon-johnsons-blunt-talk-about-racism-50-years-ago-at-howard-university-remains-relevant-today" target="_blank">Lyndon Johnson gave at Howard</a> 50 years ago: "Johnson spoke of a widening gulf between blacks and whites in unemployment, infant mortality and economic opportunity. 'It is not enough just to open the gates of opportunity. All our citizens must have the ability to walk through those gates,' he said.<br />
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VCs are widely regarded as one way to walk thru the gates of opportunity, but we know, given the statistics cited above, this is false. </div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-21754588730887208782015-10-07T16:37:00.001-04:002015-10-07T16:38:16.246-04:00Obama Turns to Crowdfunding to Aid Fleeing Syrians<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiijwAGQ_M3dJp3lv6bf_UyiFoGpqr0WGGcvRgs9JOwUrc19ZLeRo8pjDTwfKsdPYYltyYqyojIi8mN-aq7hm_nJ6VDNHsHP_gZhritEk2y0_9hV67juKd-B9uEame7ydwnG7i8maHmgbQ/s1600/RefugeesCartoon.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="176" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiijwAGQ_M3dJp3lv6bf_UyiFoGpqr0WGGcvRgs9JOwUrc19ZLeRo8pjDTwfKsdPYYltyYqyojIi8mN-aq7hm_nJ6VDNHsHP_gZhritEk2y0_9hV67juKd-B9uEame7ydwnG7i8maHmgbQ/s320/RefugeesCartoon.jpg" width="320" /></a></div>
<span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 13px; line-height: 17px;">As the New York Times reported, "Syrian refugees continue to flee the violence at home, President Obama is turning to the modern tools of Silicon Valley entrepreneurship as a supplement to the more traditional means of humanitarian relief. At the request of officials from the White House Office of Digital Strategy, the crowdfunding website Kickstarter has begun its first social service campaign aimed at raising money for the United Nations refugee agency on behalf of Syrian refugees." </span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 13px; line-height: 17px;">Here is my 10/7 talk on NPR's Press Play with Madeleine Brand: </span><a href="http://www.linkedin.com/redir/redirect?url=http%3A%2F%2Fwww%2Ekcrw%2Ecom%2Fnews-culture%2Fshows%2Fpress-play-with-madeleine-brand&urlhash=VvVH&_t=tracking_anet" rel="nofollow" style="background-color: white; border: 0px; box-sizing: border-box; color: #96999c; cursor: pointer; font-family: Arial, sans-serif; font-size: 13px; font-stretch: inherit; line-height: 17px; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="blank">http://www.kcrw.com/news-culture/shows/press-play-with-madeleine-brand</a><span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 13px; line-height: 17px;"> </span><br />
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<span style="background-color: white; color: #333333; font-family: Arial, sans-serif; font-size: 13px; line-height: 17px;">How effective is this? They raised $700,000 in six hours. Six hours. For more, visit the links below. </span><br />
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<a href="http://www.linkedin.com/redir/redirect?url=http%3A%2F%2Fwww%2Enytimes%2Ecom%2F2015%2F10%2F07%2Fworld%2Fmiddleeast%2Fobama-turns-to-crowdfunding-to-aid-fleeing-syrians%2Ehtml%3F_r%3D0&urlhash=t7Sv&_t=tracking_anet" rel="nofollow" style="background-color: white; border: 0px; box-sizing: border-box; color: #96999c; cursor: pointer; font-family: Arial, sans-serif; font-size: 13px; font-stretch: inherit; line-height: 17px; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="blank">http://www.nytimes.com/2015/10/07/world/middleeast/obama-turns-to-crowdfunding-to-aid-fleeing-syrians.html?_r=0</a><a href="http://www.linkedin.com/redir/redirect?url=http%3A%2F%2Fqz%2Ecom%2F519438%2Fkickstarter-just-crowdsourced-a-million-dollars-for-syrian-refugees%2F&urlhash=gbIr&_t=tracking_anet" rel="nofollow" style="background-color: white; border: 0px; box-sizing: border-box; color: #96999c; cursor: pointer; font-family: Arial, sans-serif; font-size: 13px; font-stretch: inherit; line-height: 17px; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="blank">http://qz.com/519438/kickstarter-just-crowdsourced-a-million-dollars-for-syrian-refugees/</a><a href="http://www.linkedin.com/redir/redirect?url=http%3A%2F%2Fwww%2Ehuffingtonpost%2Ecom%2Fentry%2Fkickstarter-syrian-refugees_5613f2e5e4b022a4ce5f90ad&urlhash=AP4Z&_t=tracking_anet" rel="nofollow" style="background-color: white; border: 0px; box-sizing: border-box; color: #96999c; cursor: pointer; font-family: Arial, sans-serif; font-size: 13px; font-stretch: inherit; line-height: 17px; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="blank">http://www.huffingtonpost.com/entry/kickstarter-syrian-refugees_5613f2e5e4b022a4ce5f90ad</a><a href="http://www.linkedin.com/redir/redirect?url=http%3A%2F%2Fwww%2Etheguardian%2Ecom%2Fworld%2F2015%2Foct%2F06%2Fkickstarter-pairs-with-unhcr-to-help-syrian-refugees-after-white-house-call&urlhash=2KEL&_t=tracking_anet" rel="nofollow" style="background-color: white; border: 0px; box-sizing: border-box; color: #96999c; cursor: pointer; font-family: Arial, sans-serif; font-size: 13px; font-stretch: inherit; line-height: 17px; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="blank">http://www.theguardian.com/world/2015/oct/06/kickstarter-pairs-with-unhcr-to-help-syrian-refugees-after-white-house-call</a><a class="toggle-show-more" href="https://www.linkedin.com/grp/home?gid=2208940&sort=recent&trk=my_groups-tile-flipgrp#" style="background-color: white; border: 0px; box-sizing: border-box; color: #008cc9; cursor: pointer; font-family: Arial, sans-serif; font-size: 13px; font-stretch: inherit; line-height: 17px; margin: 0px; padding: 0px 0px 0px 5px; text-decoration: none; vertical-align: baseline; white-space: nowrap;" title="Show less">less</a></div>
William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-35601133351575057252015-09-03T12:45:00.001-04:002015-09-03T12:45:10.314-04:00Crowdfunding news article and stories<div dir="ltr" style="text-align: left;" trbidi="on">
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Book: The JOBS Act: Crowdfunding for Small Businesses and
Startups</div>
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<a href="http://www.amazon.com/gp/product/143024755X/">http://www.amazon.com/gp/product/143024755X/</a><o:p></o:p></div>
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Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns</div>
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<a href="http://www.amazon.com/Top-50-Crowdfunding-Campaigns-Successful-ebook/dp/B00RKK4NL0">http://www.amazon.com/Top-50-Crowdfunding-Campaigns-Successful-ebook/dp/B00RKK4NL0</a></div>
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Businesses, Brushed Off by Banks, Look to Customers for
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<a href="http://www.thestreet.com/story/11780547/1/businesses-brushed-off-by-banks-look-to-customers-for-funding.html?utm_source=BlackCrowdfunding&utm_campaign=9d5ce19cfb-11_2_2010&utm_medium=email&utm_term=0_36cf2478b0-9d5ce19cfb-415118125">http://www.thestreet.com/story/11780547/1/businesses-brushed-off-by-banks-look-to-customers-for-funding.html</a><o:p></o:p></div>
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New Crowdfunding Site Supports Black Entrepreneurs<o:p></o:p></div>
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<a href="http://www.bet.com/news/national/2013/04/19/new-crowdfunding-site-supports-black-entrepreneurs.html?utm_source=BlackCrowdfunding&utm_campaign=9d5ce19cfb-11_2_2010&utm_medium=email&utm_term=0_36cf2478b0-9d5ce19cfb-415118125">http://www.bet.com/news/national/2013/04/19/new-crowdfunding-site-supports-black-entrepreneurs.html</a></div>
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Crowdfunding Site Targets African Americans<o:p></o:p></div>
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<a href="http://upstart.bizjournals.com/money/loot/2013/04/15/crowdfunding-site-targets-african.html?utm_source=BlackCrowdfunding&utm_campaign=9d5ce19cfb-11_2_2010&utm_medium=email&utm_term=0_36cf2478b0-9d5ce19cfb-415118125">http://upstart.bizjournals.com/money/loot/2013/04/15/crowdfunding-site-targets-african.html</a><o:p></o:p></div>
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A Crowdfunding Site for Black Entrepreneurs<o:p></o:p></div>
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<a href="http://www.washingtonpost.com/business/capitalbusiness/the-download-a-crowdfunding-site-for-black-entrepreneurs/2013/04/12/9089fe78-a2c9-11e2-be47-b44febada3a8_story.html?utm_source=BlackCrowdfunding&utm_campaign=9d5ce19cfb-11_2_2010&utm_medium=email&utm_term=0_36cf2478b0-9d5ce19cfb-415118125">http://www.washingtonpost.com/business/capitalbusiness/the-download-a-crowdfunding-site-for-black-entrepreneurs/2013/04/12/9089fe78-a2c9-11e2-be47-b44febada3a8_story.html</a><o:p></o:p></div>
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As Crowdfunding Grows, the Rewards Increase — but So Do the
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<a href="http://knowledge.wharton.upenn.edu/article/as-crowdfunding-grows-the-rewards-increase-but-so-do-the-risks/">http://knowledge.wharton.upenn.edu/article/as-crowdfunding-grows-the-rewards-increase-but-so-do-the-risks/</a><o:p></o:p></div>
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Commentary: Crowdfunding can provide new financing option
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<a href="http://www.washingtonpost.com/business/capitalbusiness/commentary-crowdfunding-can-provide-new-financing-option-for-minority-firms/2012/06/01/gJQAThq7BV_story.html">http://www.washingtonpost.com/business/capitalbusiness/commentary-crowdfunding-can-provide-new-financing-option-for-minority-firms/2012/06/01/gJQAThq7BV_story.html</a><o:p></o:p></div>
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Commentary: The quest for crowdfunding enters a complicated,
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0tag:blogger.com,1999:blog-4026181532251497768.post-47435054300408269502015-08-23T17:33:00.001-04:002020-08-05T15:54:06.254-04:00Black People, Venture Capital and Crowdfunding<div dir="ltr" style="text-align: left;" trbidi="on">
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I recently gave a talk at the 2015 National Black MBA Association, INC. Washington DC Chapter (NBMBAA-DC) Entrepreneurship Expo. My talk, titled “Black People and Venture Capital: Why You May Never Get Funded,” available at <a href="https://youtu.be/gXGBEUoxHHs">https://youtu.be/gXGBEUoxHHs</a></div>
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I started with a discussion of the key financial institution in the country, the Federal Reserve Board, which controls the allocation of capital via monetary policy, the tools used to control the supply of money. The Fed is located at 20th Street and Constitution Avenue N.W. and I encouraged DC entrepreneurs to visit the institution, since the Fed directly impacts the ability of small businesses to get capital.</div>
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I also encouraged Black businesses in DC to use the recently established Offices of Minority and Women Inclusion as a powerful potential source of capital and contracts. Section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act contains a provision creating an Office of Minority and Women Inclusion (OMWI) responsible for monitoring diversity efforts at the agencies, regulated entities and agency contractors. (For those unfamiliar with these Offices, we offer a seminar describing in detail the duties and performance of the 29 OMWI Offices. h<a href="ttp://www.eventbrite.com/e/office-of-minority-and-women-inclusion-omwi-performance-opportunities-for-minority-and-women-firms-tickets-4633212062">ttp://www.eventbrite.com/e/office-of-minority-and-women-inclusion-omwi-performance-opportunities-for-minority-and-women-firms-tickets-4633212062</a>)</div>
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In the video, I cite my belief that crowdfunding, or raising money online for people, projects and products, is one of the only viable ways Black companies can get funded. I referenced my books on the subject: Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns at: <a href="http://www.amazon.com/dp/B00RKK4NL0">http://www.amazon.com/dp/B00RKK4NL0</a> and The JOBS Act: Crowdfunding for Small Businesses and Startups at: <a href="http://www.amazon.com/JOBS-Act-Crowdfunding-Businesses-Startups/dp/143024755X/">http://www.amazon.com/JOBS-Act-Crowdfunding-Businesses-Startups/dp/143024755X/</a> </div>
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Key trends in crowdfunding include the following:</div>
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• Kickstarter and Indiegogo continue to dominate crowdfunding.</div>
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• Corporate America is into crowdfunding..major brands, including Kia and Kimberly-Clark, have launched campaigns to test the market for new products.</div>
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• Startups raised $204 million through equity models in 2013; that number was expected to top $700 million—7 percent of the overall crowdfunding market—in 2014.</div>
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I also discuss my belief that the key to getting angel or venture capital funding lies in being referred to investors by another investor or entrepreneur. I identify Keiretsu Forum, a global angel investor network, as a good resource, but noted they have not funded a single African American firm, however.</div>
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I referenced “Dunbar’s Number”, named for psychologist Robin Dunbar, who found that “humans are able to maintain relationships with no more than roughly 150 people at a time.” Dunbar’s research shows that “when it comes to meeting people who can help you professionally, three degrees of separation..is the magic number because when you’re introduced to a second- or third-degree connection, at least one person in an introduction chain personally knows the origin or target person.” </div>
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As I said on Mashable, <a href="http://mashable.com/2014/07/21/startup-racism/" target="_blank">http://mashable.com/2014/07/21/startup-racism/ </a> 1% of VC funding goes to Black people. This is no accident. Other studies <a href="http://elitedaily.com/money/venture-capitalists-still-overwhelmingly-fund-white-male-entrepreneurs-minorities-women/">http://elitedaily.com/money/venture-capitalists-still-overwhelmingly-fund-white-male-entrepreneurs-minorities-women/</a> have confirmed that “venture capital funding overwhelmingly goes to white men.” Given this, it makes no sense to solicit funding from a group you know is not going to fund you. Viable alternatives include crowdfunding, angels, bootstrapping and possibly bank financing (but not really).</div>
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At one point, I outlined a strategy of buying real estate in Black communities to use as an asset for a startup franchise location. Further, I referenced my Blank Crowdfunding Business Slides <a href="https://drive.google.com/file/d/0Bx3S91AlzNJ4Uk1qc3czckpKRWRIcC1RX0dVcWlkUjJsZ2M0/view?usp=sharing">https://drive.google.com/file/d/0Bx3S91AlzNJ4Uk1qc3czckpKRWRIcC1RX0dVcWlkUjJsZ2M0/view?usp=sharing</a> as one way to begin to outline your startup capital needs and strategy.</div>
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I discussed using credit cards, personal loans and other resources to accumulate enough capital to start a business and about how “an increasing number of VCs want startups to engage in crowdfunding before requesting backing” but how VCs are still too racist and greedy to allow Black companies the room they need to serendipitously discover and uncover market value. I pointed out how this was exactly how Google uncovered the strategy that eventually led them to a $200 billion market value.</div>
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Finally, for those foolish enough or determined to pursue VC funding, I discuss the main reasons why people don’t get funded:</div>
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· Your character, integrity or leadership is questionable</div>
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· You failed to spot issues with your team because you’re too trusting, too polite, or too focused on yourself</div>
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· Not referred to investors by another investor or entrepreneur</div>
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· Hard-headed to the point of being unable to listen to input from an experienced, reasonable and knowledgeable investor</div>
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· Not deeply embedded in your niche or area of expertise</div>
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· An inability to stop, and think, and finally, </div>
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· 99% of VCs are racist and/or sexist</div>
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William Michael Cunninghamhttp://www.blogger.com/profile/00899547528593167624noreply@blogger.com0