Oeffa 11.5.13
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Transcript of Oeffa 11.5.13
CROWDSOURCINGACCORDING TO JEFF HOWE
• Crowd wisdom
• Crowd creation
• Crowd voting
• Crowd funding
CROWDFUNDING TYPESBY MARTY ZWILLING
• Good cause crowdfunding
• Rewards-based crowdfunding
• Pre-order crowdfunding
• Debt-based crowdfunding
• Start-up equity crowdfunding
-Marty Zwilling
Will the Real Crowdfunding Model Please Stand Up?
THE JOBS ACT(JUMP-START OUR BUSINESS STARTUPS ACT)
The JOBS Act was signed into law by President Obama in the Spring of 2012.
It removes regulatory hurdles for small businesses and allow companies to raise capital from private investors and in public markets.
The Securities and Exchange Commission (SEC) was asked to draft the specific guidelines.
THE JOBS ACT(JUMP-START OUR BUSINESS STARTUPS ACT)
Specifically the legislation would….
Remove the restrictions on advertising or soliciting investments
Change who could qualify as an accredited investor
Loosen the reporting requirements of the SEC, including provisions of the Sarbanes-Oxley Act
THE JOBS ACT(JUMP-START OUR BUSINESS STARTUPS ACT)
On July 10, 2013 the SEC acted on the solicitation ban.
On September 23, 2013 the new rule took effect.
On October 9, 2013 they acted on the accredited investor issue.
THE ‘CHALLENGES’ OF CROWDFUNDING-BILL CLERICO
Fraudulent entrepreneurs with a slick video can dupe people into investing in a nonexistent product
Incompetent entrepreneurs can fail to deliver on their promises
Unsatisfied investors can dispute their transactions and amass huge liabilities for the platforms and payment processors
Insecure platforms can risk credit card data
HOW TO MAKE THE BEST CROWDFUNDING PITCH-MOHANA RAVINDRANATH
1. Your story should be authentic, clear, and precise
2. Don’t assume your audience are experts in your field or even in investments
3. Choose your audience
4. Show the funders what you already have
5. Choose the crowdfunding platform carefully
KICKSTARTER SUCCESS RATE-MASHABLE, 2012
GEOGRAPHIC DISTRIBUTION OF PROJECTS IN THE U.S.A. BY SUCCESS
Ethan Mollick, Kauffman Dissertation Fellow, University of Pennsylvania
EMPOWER PEOPLE AROUND THE WORLD WITH A $25 LOAN
Technology platform that connects donors with borrowers – original crowdfunding platform
• 1,000,000+ lenders
• $490,000,000+ in loans
• 99% repayment rate
• 227 field partners in 73 countries
Most successful crowdfunding site in history.
• Every borrower needs an endorsement
• Braintree is a trustee and writes endorsements
• Borrower completes a loan application
• Braintree reviews the loan and makes final recommendation
• The Kiva Zip team will review the loan, before posting it to the website to begin fundraising
• Loans are given 3 months to fully fund
THE IN-DEPTH KIVA ZIP LOAN PROCESS
KIVA TRUSTEES IN THE U.S.A.
Startup businesses in Northeast OhioWe provide:
• Term loans of $1,000-$50,000 • Current interest rate of 7.25%, other terms vary based on
specific needs• Loan uses include: equipment, inventory, business debt
restructuring, and project based working capital
Basic requirements:
• Collateral, Personal guarantees, demonstrated revenue sufficient for loan payments
New technology based ideas in Northeast OhioWe provide:
• Grant funding without equity position• Up to $2,000 for eligible businesses• Up to $6,000 for Braintree tenants• Acceptable funds uses include: design, prototypes, patents, initial
inventory, etc.
• Business model design• Funding pitch development• Competitive process experience
FARM CREDIT MID-AMERICA
Colin Gordon
Wooster, OH
330.264.2451
Financing Agricultural Needs
Operating
Real Estate and Facilities
Equipment
Visit us at e-farmcredit.com
