Crowdfunding Now!

As the article notes, "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... Due to these factors — along with the legalization of equity crowdfunding accomplished via the passage of the JOBS Act in 2012 — 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." See the full article at:  https://www.merchantmaverick.com/crowdfunding-for-startups-8-tips-you-s...

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. Create multiple touchpoints. Comparing crowdfunding campaigns: Campaign A:  Email: 6.23 conversion rate. Facebook Group: 28.69% conversion rate. SMS 6.96% conversion rate. Campaign B:  Email: 2.06 conversion rate. Facebook Group: None. SMS 6.74% conversion rate.

The Download: A crowdfunding site for black entrepreneurs By Steven OverlyApril 14, 2013 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. 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. 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. “Most people start a business by taking out loans on their houses or going to friends and family and raising money that way,” C...

1. A verifiable track record of growth 2. Make sure the deal stands on its own 3. Remember that people invest in people Planning To Raise Millions Of Dollars? Consider These 3 Pieces of Advice via @Entrepreneur http://entm.ag/pzg1

I thought I would share some initial feedback I have received on the new book:  The JOBS Act: Crowdfunding Guide to Small Businesses and Startups 2nd ed.   https://www.amazon.com/JOBS-Act-Crowdfunding-Businesses-Startups/dp/1484224086 "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. Scott S. Thank you, Scott!

Google searches for  crowdfunding  up 17% in past week Worldwide - Tuesday, December 20, 2016 - Tuesday, December 27, 2016

As we  forecast , 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).  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  Title III of the JOBS Act  means greater opportunity for minority, women and veteran firms to obtain equity funding. 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 t...

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  here .  We think the SEC will use this opportunity to release the final Title III crowdfunding rules. As I describe in my  book on the JOBS Act , 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.  Recently,  two state securities regulators (Montana and Massachusetts) brought...

Book: The JOBS Act: Crowdfunding for Small Businesses and Startups http://www.amazon.com/gp/product/143024755X/ Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns http://www.amazon.com/Top-50-Crowdfunding-Campaigns-Successful-ebook/dp/B00RKK4NL0 Businesses, Brushed Off by Banks, Look to Customers for Funding http://www.thestreet.com/story/11780547/1/businesses-brushed-off-by-banks-look-to-customers-for-funding.html New Crowdfunding Site Supports Black Entrepreneurs   http://www.bet.com/news/national/2013/04/19/new-crowdfunding-site-supports-black-entrepreneurs.html Crowdfunding Site Targets African Americans http://upstart.bizjournals.com/money/loot/2013/04/15/crowdfunding-site-targets-african.html A Crowdfunding Site for Black Entrepreneurs http://www.washingtonpost.com/business/capitalbusiness/the-download-a-crowdfunding-site-for-black-entrepreneurs/2013/04/12/9089fe78-a2c9-11e2-be47-b44febada3a8_story.html As Cro...

"How To Crowdfund" on Udemy: https://www.udemy.com/how-to-crowdfund/ Course Contents: What is Crowdfunding? The JOBS Act's definition of " crowdfunding ," “ crowdfunding platforms," and “emerging growth companies" How to get up to $1 million through crowdfunding The risks and rewards of taking advantage of crowdfunding Intellectual property protection Choosing a crowdfunding platform SEC Title IV Regulation A - how does this work? Indiegogo vs Kickstarter State-level crowdfunding How to stay on the right side of the law when soliciting funds How to identify and deal with reliable crowdfunding platforms and companies How businesses owned by women and minorities can raise new capital, as well as those now shut out of the capital markets (restaurants, day-care centers and others ignored by finicky venture capitalists and skittish bankers) How investors can identify opportunities, avoid fraud, perform due diligence, and then make an int...

Starting a nonprofit crowdfunding campaign is neither easy nor simple despite the positive social motivation of the typical campaigner. The reason for this is that the process of creating a nonprofit is complicated, due to the benefits they receive from the government. One of the most useful assistance the U.S. government provides is support to social benefit organizations via an exemption or tax deduction for contributions. Since normal successful crowdfunding campaigns usually spend around 30% of their revenue paying taxes (or they should anyway), this tax advantage will generate huge financial benefit for those who are not subject to taxes. However receiving this huge benefit requires official approval from the US government. Crowdunding is a new method of raising money and IRS has not yet announced guidelines regarding tax procedures for campaigns. Campaigns created through crowdfunding platforms are usually subject to taxes, except for those organizations who have tax exempt ...

DC announced they are considering a crowdfunding exemption. See:  http://youtu.be/ImVLxX2z0rQ

The items below are from an article on what causes small business failures. I have repurposed it to show how crowdfunding addresses these issues and how we use these factors in evaluating potential crowdfunding campaigns. "Inadequate Financing" Clearly, crowdfunding addresses this issue. "Amount of Effort Exerted:  The single most important factor in determining who succeeds and who doesn't is simply the amount of effort exerted. If you aren't ready and willing to work - and work hard - being an entrepreneur is probably not for you." While we don't believe that effort expended is the single most important factor, crowdfunding is hard. If you will not work hard on it, and work smart, then you will not do well. "Lack of Planning:  Another fact rarely considered is that the majority of new businesses fail within a few years mostly due simply to poor planning or no planning at all." You have to plan your crowdfunding ca...

The Washington Post reported that Ben Miller, the co-founder of Fundrise.com, said that his firm has received $31 million in financing from tech and real estate investors led by Chinese social media giant Renren and executives from New York developer Silverstein Properties. Other investors include Scott Plank, formerly of Under Armour, and Rich Boyle, former chairman and chief executive of Loopnet. http://www.washingtonpost.com/news/digger/wp/2014/05/28/fundrise-lands-31-million-in-financing-led-by-chinese-social-media-firm/

According to Financial Services Committee Staff, Congressman Patrick McHenry has offered to "strike Title III of  the JOBS Act, which was added by the Senate, and replace it with legislation that closely  mirrors the House-passed crowdfunding title and makes additional improvements." The proposed legislation, "entitled  the ' Startup Capital Modernization Act of 2014 ' ,  (H. R. 4565)  is primarily directed towards fixing some of the potentially fatal defects and ambiguities embedded in the original JOBS Act bill...here are some of the highlights: Raises crowdfunding limits from $1 million to up to $5 million. Allows self –certified financials for raises under $500,000 – and independently reviewed financials statements for raises between $500,000 and $3 million – leaving the more onerous audited financials for raises above $3 million. Eliminates the requirement that the SEC promulgate rules requiring detailed, registration statement-like non-financial di...

MILLIONS OF  ENTREPRENEURS    NEVER GET A FAIR CHANCE   TOGETHER, WE'LL CHANGE THAT  

"three basic issues that should be addressed before launching a (product-based crowdfunding) campaign: Cost.  Before anything else, you need to determine what the true costs of the product are in terms of materials, labor, and ancillary production expenses? 'You can’t begin to set realistic margins until you have that completely nailed down,' he says. Quality.  In this case, 'quality' doesn’t necessarily mean reaching for the highest possible standard, with all other considerations secondary; that’s the path to bankruptcy, notes Miller. 'You have to match customer expectations and product costs to your quality benchmark,' he says. 'You need the right balance. If the quality is too low relative to your price point, you’ll either never get off the ground or your customers will ebb away. If the quality is too high per the price, you can lose so much money you go out of business.' Scheduling.  You have to deliver products when they’re expected. ...

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Martin Luther King Memorial, Washington, DC Photo by William Michael Cunningham Copyright, WMC, 2012. "Evil is not driven out, but crowded out...through the expulsive power  of something good. " MLK Related articles "I Am MLk" Poem Crowdfunding statistics & trends [infographic]