How to Win with the New SEC Changes

Accelerate YourSuccess with Investors

Karla De Leon

President – Wazgo

Game Time: Is it Legal?

Is it Legal?

Is it Legal?

Is it Legal?

Last week…

All these things were illegal.

Today, it’s legal!* *All information about your business must be true and accurate, like truth in advertising.

What happened in the last week that

made this all legal?

JOBS Act!•Biggest change to investor law in our lifetime.

•Market your investment, Get accredited investor for your business. (AKA “General Solicitation”)

Goal for Today:

Learn How You Can Maximize the Benefits of the New Legal

Changes for Getting Investors for your business or cause.

BONUS:

I’ll give you access to free tools to help you succeed when you

are ready

Wazgo.com

Says Who?

Karla De Leon, President- Wazgo

UC Berkeley

US Dept of State

Masters: Cornell University

United Nations: FAO

Business Finance Store

JOBS Act

Crowdfunding Consultant

Wazgo

The Great Timeline of De Leon

What is Crowdfunding?•Debt: (Prosper.com)

•Reward: (Kickstarter, Indiegogo)

•Equity: (Title III coming soon, Title II Crowdfunding for Accredited Investors)

The Old Way to Get Investors

Shark Tank

Shark Tank is NOT Real Life

•Venture Capital: Everyone wants VCs but… •Only invest is mega-growth companies. •$50 million in 5 years.•They turn down 99% of the pitches they see.•Typically require extensive previous success.•Can take your business away at any moment.

You Want Private Investors

•Fund 30 times as many deals as VC’s each year

•Great private investors as individuals “Whales”

•Can be more difficult in groups “Killer Whales”

The Old Private Placement

• You sell partial ownership of your business via a PPM (Private Placement Memorandum)• Typically costs over $20,000 to create• Mostly “accredited investors” (35 non-accredited)• No Marketing Your Investment Offering• Must have a previous substantive business

relationship with investors

Accredited Investors• Over $1 million

net worth • $200k per year,

$300k for a couple

What was wrong with the old way?

What percent of traditional investment dollars go to women-owned businesses?

New Opportunities…

JOBS Act: The NEW Private Placement

•You still need a PPM to get investors BUT

•You can reach more people •You won’t be blocked by a group of cronies•You can market your offering•Great opportunities for social business

The NEW Private Placement

•You can market your investment offering to everyone•All your investors MUST be accredited investors•You must take steps to verify they are accredited•Proposed Regulations…

What does this mean for your business?

You can go viral!

•The internet lets you reach more people

•Get Creative

•Use all your marketing resources

You have to be awesome!•Investors aren’t sitting there waiting to throw money at you

•Trust through visuals

•Get a step ahead of the competition with Wazgo

Don’t Forget Crowdfunding•Crowdfunding is a great stepping stone to getting private investors.

•Proof people want your business. No one wants to be the first one on the dance floor!

Reward Crowdfunding is a great 1st step!

•Great way to test your market and get proof of concept•Money you don’t have to pay back•Don’t worry about legal issues•Show future investors other people believe in you

One Thing is True…

• Getting crowdfunded and getting private investors is hard work.

• There’s a lot of competition. Have you seen Kickstarter lately? Angelist?

• Make sure your pitch is AMAZING.

Wazgo

•Practice Your Pitch

•Find The Right Goal

•Test Your Rewards

Ready… Aim… Fire?

Don’t mess with the fire code…

Pitch Fire Code #1•Have A Clear Goal & Purpose

“Do I Understand It?”

•Have an Elevator Pitch•Practice & Get Feedback•Example: Who Gives a Crap

Pitch Fire Code #2•Establish Your Credibility

“Do I Believe It?”

•Sell Yourself First•Show Social Proof•Facebook, Blogs, Fans

•Example: Holidazed Cookbook

Pitch Fire Code #3

•Build Something…

“Do I Want It?”

•Samples, Demos, Mockups, Test Users…•The More You Have The More You’ll Get•Example: Brownies

Pitch Fire Code #4

•Be Different – Clearly Show How

“Can I Get It Anywhere Else?”

•You can’t be everything to everyone•Show what you DO and what you DON’T do•Example: Activyst

Pitch Fire Code Recap

1. Have A Clear Goal & Purpose

2. Establish Your Credibility

3. Build Something

4. Be Different and Show How

The Bonus!

Wazgo.com• Free platform - helps you coordinate with

investors and tune your offering before going live with crowdfunding or private investors

• We also offer consulting services to assist you:• Phone-A-Friend: Phone consultation• 50 / 50 : We split the work • Full Service: We do almost everything

Learn to Fish•Forget the 45 Day Faceplant•Most sites have you flame out in 30 days

•Make your 1 year plan where you succeed!•People listen when you’re not asking for money• You can always launch sooner •Delays reduce your credibility

Thank you!Follow Me on Twitter for More Tips:

@WazgoFunding