CROWDFUNDING . Outline Legal Issues How to of Crowdfunding .
Colorado Crowdfunding Openshop Innosphere
Transcript of Colorado Crowdfunding Openshop Innosphere
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Colorado Crowdfunding Presented by Vim Consulting Thank You Rocky Mountain
Innosphere
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Agenda
• Introduction • Overview of Openshop • History of Crowdfunding • Five Funding Options • Top Funding Tip • CO Crowdfunding Workshop
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About Brian Personal I am a dad with two boys, conscious entrepreneur and committed to my spiritual inner journey, my purpose is to live passionately inspired to create connection and full engagement, All-American swimmer in college
Professional •Visionary in my EZOG Style •I am an entrepreneur - over 20 years of experience •I raised almost $2 million in private equity •Board Member Crowdfunding Professional Associations •Founder, CEO of Vim, Inc •Co-Creator of Funding Launchpad, Vim Insights, Vim Quests, Vim Loft, Vim Events, Vim Startups,
Vim Fundability, Vim Lending, Vim Software Programs: Colorado Crowdfunding Intensive
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Disclaimer
I am not an attorney, nor play one on television. I am not providing legal advice and you are advised to talk to an attorney with any securities transactions you are engaged in.
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Colorado Crowdfunding Part One: History of Crowdfunding
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What is Crowdfunding?
•A collective effort from many individuals to fund a charity, event, business, artist and other projects typically online.
•The JOBS Act is a Game Changer –Title II –Title III
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Crowdfunding Worldwide
Image Credit: PleaseFund.us and crowdsourcing.org
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Types of Crowdfunding
• Micro-‐Finance
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Types of Crowdfunding
• Peer to Peer(P2P)
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Types of Crowdfunding
• Reward
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Types of Crowdfunding
• Equity
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Early Crowdfunded Ventures
Irish Loan Fund- 1700's
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Poli>cians Join the Act
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Power of the Internet
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$10M Campaign
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$200M, 5M, 7 Months Online
Image Credit: Gplus.com
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First $1M Plus Equity Deal
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$128,542,079.00 and Going Strong
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Perks versus Security
Perks Based Security Based
Pros Cons Pros Cons
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JOBS Act- April 5th 2012
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Colorado Crowdfunding Part Two: Five Funding Options
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Options for Issue
1. Form RL-Limited Registration by Qualification
2. CO U-7 SCOR-Small Company Offering Registration- with Reg D 504
3. Regulation A 4. Reg D 504 MAIE
5. Reg D 506 Exemption Title II JOBS Act
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Form RL Key Qualification
80% of raise must be spent in Colorado entity
Majority of employees based in CO All investors must be CO residents Colorado Entity
$1M in 12 months Escrow required Min/Max
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Form RL Registration Key Advantages
• Limited documentation • Reviewed financials • The Colorado Division of Securities
(DORA) should decide within 14 business days
• $75 filing fee • Lowest compliance
cost option
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SCOR Key Qualifications
-47 States offer a SCOR, filed under uniformed application U-7 -Must file Federal Exemption- Reg D 504 -$1M in 12 months -$1.00 per share min -Can require audited financials, ongoing requirement for audit post funding -Escrow required -Min/Max
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Reg A Key Qualifications
-Federal Exemption by Review -Complete and File Form 1-A -Reviewed by the SEC -Verbally "Testing the Waters" -Offering Circular required -Currently up to $5M in 12 months -No set requirement for accounting although SEC can require audited
-No escrow or min/max
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Reg D 504 MAIE
-Only generally solicit to Accredited Investors -Must file Reg D 504 with SEC and CDOS -Maximum raise $1M in 12 months --Usually offered through Private Placement Memorandum
-There is no qualification File MAIE Form with CDOS
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Reg D 506
-Practically only sell to Accredited Investors -Currently NO advertising or general solicitation- Title II JOBS Act changes this
-Usually audited financials are required -Unlimited amount of capital -Usually offered through Private Placement Memorandum
-There is no qualification
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Forms
U-7 Form 1-A Form RL Form D MAIE Form
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Other Documentation
Private Placement Memorandum Shareholder Agreement Loan Agreement Leases Purchase Orders Expert Opinions Accounting Opinions
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Takeaways
• You have four current options for selling securities to the public now
• In the future with the JOBS Act you will have two more
• Selling securities to the public is only right for some businesses
• Compliance is a significant component of general solicitation
• The Vim Fundability Decision Tree
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Colorado Crowdfunding Part Three: Top Funding Tip
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Understanding Your Investor
1. What stage is your business? 2. What type of investor is best for stage? 3. Know your investor preferences and
past investments 4. Know psychographics and
demographics 5. Find a way to get in front of these
people
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Go Raise Money!
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Colorado Crowdfunding Part Four: CO Crowdfunding
Workshop
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Why take this workshop?
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Hard to find Capital
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General Solicitation
InvestinMyCompany.com
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Who is it for?
Any business that is ready to raise capital using general solicitation
Any business that generally seek under $1M in capital Reg A is $5M
Any business with lots of CO connections, fans, customers or social network
Any business that simply wants to learn how to raise capital like a professional
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FundingLaunchPad.com
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Workshop Information
Join us for our three day intensive program February 11th, 13th & 15th
Focus on Form RL, SCOR, Reg A, Reg D 504 MAIE and Reg D 506 registrations and Crowdfunding model
Only have 9 slots open for class
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Sign Up Today!
Investment $1497, limited to first 10. If you sign up for session today you also get -a free 1 hour coaching session prior to
workshop -$1000 off FundingLaunchpad.com A total of $1750 free additional value
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Free Strategy Session
• If this is for you, please complete the attached form and return it to me.
• I will select 2 applications to meet with in next two weeks
• If you want to stay connected to all of our funding news please sign up for our newsletter.
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We Make It Easy
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Thank you
Join Colorado Capital Formation Meetup for events on all ways to raise capital for your business!
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Vim Consul>ng Informa>on
• Contact Info: • [email protected] • 303-‐408-‐3671-‐ Mobile Number • www.StartupGuru.com • LinkedIn: Brian Tsuchiya