Equity Crowdfunding: The Future of Startup Funding @gothrivera · But you’ll need Capital to...
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@gothrivera Equity Crowdfunding: The Future of Startup Funding
Transcript of Equity Crowdfunding: The Future of Startup Funding @gothrivera · But you’ll need Capital to...
@gothrivera
Equity Crowdfunding: The Future of
Startup Funding
Entrepreneur Obstacles
We’re%on%a%mission%to%help%entrepreneurs%get%funded%and%into%growth%stage.
Investment
Entrepreneurs%need%to%Brand,%Fund,%&%Grow%their%ideas.%
Brand Go(to(MarketFund
✤ You have this idea. It may be a really cool idea
So, You have an
Idea?
But… you need a great Story and a Vision
Moonshot Thinking: Power of 10X
Big & Bold Transformational Futuristic Inspirational
“It’s often easier to make something 10 times better than it is to make it 10% better” - Astro Teller Head of Google X
Occupy3Mars3is%an%inspira<onal%Vision%for%Space%Travel
Photo: Bloomberg Business 2015
But you’ll need Capital to scale it!
The Story rallies team members to build it
The Fundraising Journey Begins
Banks
Require Collateral
✤ Earn >$200K a year
✤ >$1M net worth
✤ Wealthiest 3% of society
Angel Investorsare not easy to access
Venture CapitalWant Multimillion $ ideas
10x return on investment
IRR of 25%
It’s Really Hard to Raise Capital
See Ohio Venture Report 2015
$1B Gap in Capital in Ohio
There aren’t enough early-stage investors in Ohio. The imbalance leaves many great startups underfunded or having to go outside the region for funding.
Ohio Statistics 2015
• 20.7K entrepreneurs • 167 venture funded • 0.008% chance • <2% Women & AA
Title III - Regulation Crowdfunding
Startups can now raise up to $1M from everyday investors
Creative & Artistic
Rewards based
Prototype & Validate
Technology & Business
Equity or Revenue Share
Grow & Scale
EQUITY CROWDFUNDING vs.
Revenue Share 10% of revenues | 1.5X investment amount
Cincinnati’s Queen City Brewing will pay investors 10% of gross revenues until 100% of your principal is returned plus 50%.
INVESTOR PERKS
$500+ Receive a personalized pint glass that’s on-hand whenever you visit
$1,000+ Receive a stainless steel mug with your name engraved in. It will hang on the taproom wall & your first fill is on us!
EARLY BIRD BONUS Be part of the first $100K to invest $5K or more and we'll name a beer after you.
INVEST IN CINCY’S QUEEN CITY BREWING
129
$103,705investors
raised of $100K-$1M goal
$100 min INVEST
f SHARE TWEETFOLLOW US FOR UPDATES♥
ECF enables 97% of everyday investors to participate, opening up a fresh pool of capital for startups to access.
Equity Crowdfunding Democratizes Venture Capital
Access deals reserved for the wealthy
Own equity in a startup
Engage in the startup ecosystem
Break the Monopoly of the Rich
Since May 2016
20 companies have successfully raised capital
3 for >$1M
24.4% Success Rate (i.e. 2-3x better than Indiegogo & GoFundMe)
$810 Average investment size
Is Equity Crowdfunding Working?
Vision:%%Ohio%is%the%Silicon%Valley%of%the%Midwest
BUT%our%entrepreneurs%don’t%have%enough%access%to%capital
Greater%Cincinna<%is%the%midwest’s%fastest%growing%large%economy%with%close%to%2,500%startups%in%our%region
A%hyper%local%equity%crowdfunding%plaMorm%for%entrepreneurs%looking%for%everyday%people%to%invest%in%them
@gothrivera
70% Angels invest in
companies within 100 miles of their location
Everyday People want to Back Local Startups
@gothrivera
What if you could invest in the hottest new startups too?
BREWERY?
BOUTIQUE?
TECH COMPANY?
