Funding Your Project Through Crowdfunding. What is Crowdfunding?
Mini Bootcamp: Get ready for Crowdfunding
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Transcript of Mini Bootcamp: Get ready for Crowdfunding
"TRAKLIGHT", "ID YOUR IP", "IP VAULT", and "IP CLOUD" are registered trademarks of The PIP Vault, LLC. © MMXIII The PIP Vault, LLC. All Rights Reserved.
MINI BOOTCAMP: GET READY FOR CROWDFUNDING10 STEPSMary Juetten, Founder & CEO
Crowdfunding Global Bootcamp & Convention October 15, 2013
Start on the Right Trak
Do NOT start with creating a:Campaign Pitch orBusiness Plan
THIS APPLIES TO ALL FINANCING!Disclaimer: This is intended to be general information. Nothing in this presentation constitutes legal advice. Please consult with an attorney before making any intellectual property protection decisions.
GET READY NOW
Equity is not yet Legal (Title III)
Create a Pipeline
Same steps as other Financing Sources
10 Requirements
1. Registration & Incorporation in US2. Names – Directors, Officers, >20% SH3. Business Description & BUSINESS PLAN4. Prior years Tax Returns 5. Financial Statements6. Use of Proceeds7. Offering Details & Progress Updates8. Share price & methodology (VALUATION)9. Ownership & capital10. Capital (existing, offering & differences)
EQUITY is not Easy
Tough requirements include:
Business Plans
Financial Statements
Valuation
Incorporation
LLC CORPVS.
NO SOLE PROPRIETORSHIP!
Names & People
Sweat Equity Contracts
Background Checks
Business Plan & Pitch
IDENTIFY IP
PROTECT IP
PICK A PLATFORM
BUILD SOCIAL CAPITAL
CREATE A PITCH
Got Intellectual Property?Why Care…
• IP theft costs US companies $250 billion annually
• 100% of all companies have IP
• 700K new startups annually vs. 20% protected IP after 1st year
• IP is most valuable asset and not on your Balance Sheet
• Exclude competition; Attract investment (incl. crowdfunding); Leverage & license
• Avoid IP loss, infringement, or business failure
Disclaimer: This is intended to be general information. Nothing in this presentation constitutes legal advice. Please consult with an attorney before making any intellectual property protection decisions.
What is IP?
• Patents (utility & design)• Copyright ©• Trademark/Service mark TM SM ®• Trade secrets – unsung heroes
NO legal advice provided!
IP Misconceptions
• IP is just for Tech Startups or Tech companies & Patents are the only IP for inventors
• Trade secrets are the easiest to protect because there is no registration.
• You can copy anything without a copyright ©
• You can copyright an idea.
• Domain = TM
• If I pay for it, I own it.
• Patents means right to make or sell
Strategies:ID & Protect IP
WHY WHO
WHAT
WHEN
WHERE
✔
WHO: IP Ownership Challenges
• Multiple Inventors• Who you are? Employee of another company• Proper Assignment of IP Rights – personal versus
company• Assume that Ownership automatically extends outside
the US
• Date of Idea/Invention (First to Invent First INVENTOR to file)
• Date of Use• Date of Filing• Date of Conversion• Renewals
WHEN: Key Dates to Remember
• Idea• URL• Name• Know how• Employees• Contractors
WHAT: Business Plan/Funding Presentation
Strategies to Protect IP
• Do it Yourself:– USPTO.gov– Copyright.gov
• Hire a Professional:– Attorney, Consultant, Legal Zoom, Rocket Lawyer
• Secrets:– Notary, IP Vault, Copyright software
PICK A PLATFORM
• REWARDS BASED:Kickstarter, Indiegogo, Rocket Hub How it works online!
• EQUITY BASED:Not yet legal Online Business Planning Required• OTHER:
Angel List, Lending Club, Georgia CF
REWARDS
CHOOSE THE BEST PLATFORM FOR YOU:
• ALL OR NOTHING• % BASED ON TYPE• BE REALISTIC
STEP 4: RAISE SOCIAL CAPTIAL
Success is directly related to Social Capital
Social Capital is more than Social Media
Quality not Quantity
CONTENT IS KING
Expert
Blogs
Speaking
Social Media
PR
Start working on this before you launch your campaign.
Case Study: Lessons Learned
What they do.
• Genetic Art– Ts– Portraits
• Channels– Obsessed pet
owner– Animal
organizations
Campaign attempt #1
Seriously?... Try again?
• Lessons learned• New plan of action• New cause• New business
opportunity
The new plan.
• Pre-Selling• HEAVY PR
– Social Presence– Local media
• Partnering• Get it in writing• New rewards structure• SCHEDULE
UPDATE
ONLINE
Campaign
Business Plan
Projections
`
STEP 5: CREATE PITCH
Ignorance is NOT a Defense
Be Careful:
Video
Copy
Business Plans
READ READ READ
Read License & Permission to Use
Check out Creative Commons
FINANCIAL Statements
< $100K – CEO
> $100K to < $500K Review
> $500K = AUDIT by ??????
Tax Returns
Capital structure
Ownership info
Devil in the Details
$XM Valuation/ $X per share price/ Total $XK
Spend: MAKE SELL OPERATE
$XK Now $XK $YK $ZK$XK Next $XK $YK $ZK$XK Then $XK $YK $ZK
Valuation Issues
Recent Venture beat article:
Employee Stock Options
Key Performance Indicators (KPIs)
10 Requirements
1. Registration & Incorporation in US2. Names – Directors, Officers, >20% SH3. Business Description & BUSINESS PLAN4. Prior years Tax Returns 5. Financial Statements6. Use of Proceeds7. Offering Details & Progress Updates8. Share price & methodology (VALUATION)9. Ownership & capital10. Capital (existing, offering & differences)
RESOURCES
• CfPA, CfIRA
• Crowdfundingroadmap.com Annual Oct 14th – 16th Convention & Bootcamp
• Crowdfundcast.com – podcast
• Getting Started with Crowdfunding Investing for Dummies in a Day
• Crowfunding Hatchery
• Traklight.com/IP Cloud – free resources & paid coaching
• Crowdbuilder by Leverage PR- in-depth publicity instruction, task and milestone management, to integrated calendars and media lists
• Incubators & Accelerators• Mentors• SBDC• SCORE• Startup America• Competitions• Angel Lists
• Resources: TRAKLIGHT IP CLOUD
Additional Help
Questions?
Mary Juetten
@traklight
IDENTIFY. PROTECT. SUCCEED.
www.traklight.com
Visit our home page and take RISK QUIZ