When it comes to obtaining funding to pursue their small business dreams, would-be entrepreneurs now have many new options available to them beyond traditional lending. The trick is learning how to navigate through all the options and pick what’s the best fit for you and your small business. Attend the webinar, “Crowds with Cash: Alternative Funding and Lending,” with guest expert Joseph Hogue, to learn all about crowdfunding and peer lending. Obtaining the funds you need to launch your dream may be easier than you think!

1. Crowds with Cash
Alternative Financing is a Mixed Moneybag
of Opportunity for Small Business
Hello!
Welcome to Manta’s Small Business Expert Series
Thanks for joining us today.
We’ll get started right at 2 p.m. EDT
Today’s webinar sponsored by#mantaexperts

2. Crowds with Cash
Alternative Financing is a Mixed Moneybag
of Opportunity for Small Business
Today’s webinar sponsored by#mantaexperts

3. CEO
WelcomeJohn Swanciger

4. Resource listTechnical ?
Q&A
Enlarge the
slide area

5. “Banks slashed
small business lending
by $43 billion.”
–CNN Money, February 11, 2011
The Story
“The numbers back up
what small business
owners have been saying
for two years: Main Street
suffered a brutal credit
crunch.”

6. “The future is looking bright for
alternative lenders.”
–CNN Money, December 18, 2014
Better
Story
“Crowdfunding bill passes
assembly.”
–NorthJersey.com, March 11, 2015
See the latest Manta research on
alternative funding in the resources widget

7. We’ll Talk
About
Crowds with Cash
1. Meet the expert: Joe Hogue
2. Meet the crowds:
Reward & donation based crowdfunding
*Using crowdfunding as a marketing strategy*
Equity crowdfunding
Peer-to-Peer lending
3. What you want to talk about: Q&A with Joe

8. Meet Our Expert
Joseph Hogue
Authority on alternative financing & emerging
markets investing. Also a blogger, business
owner and guy who rocks a bow tie.
Click on the speaker widget
to learn more about Joe

9. Raising money from a large number of
people, typically over the Internet
About so much more than just raising money

10. crowdfunding
For donation and/or rewards
For equity in your business

11. A revolutionary way to grow your
business
For donation and/or rewards
Rewards-Based
Crowdfunding

12. Crowdfunding
Platforms
Kickstarter
• 13M monthly
visitors
• $1.5B pledged
• All or nothing
• No social
projects
• Campaign must
be reward or
product based
• 15M monthly
visitors
• Fixed or flex
• 7,000 active
campaigns at
any time
Indiegogo
GoFundMe
• $810M raised
• 9M donors
• Keep $$
• Medical, travel,
education
• Flexible model
Open the resources widget
for Joe’s comprehensive list
of major crowdfunding
platforms

13. Is there a deadline?
Is it an all or nothing or flexible funding model?
Do they charge a percentage or a monthly fee?
Do they only accept rewards-based projects ?
What about support and education?
Questions to Ask
Crowdfunding Platforms

14. Time-consuming
All or nothing?
Unrealistic expectations
Materials and processes in place
Extends your business online
Business transaction, not fundraising
Crowdfundin
g

15. Heroes and Heels
Goal $4,000
Purpose
convention booth
fees and travel
For
Example
Crowdfunding
Example
Operational
• Asked for $10K for
retail build-out
• Partnered with local
non-profit
• Raised $6K and will
donate 1200+ loaves
of bread to a
community food
pantry
Open the resources widget to visit the All Crumbs Artisan Bakery website

16. #1 Crowdfunding Benefit
It’s about so much more than the money
A willing audience interested in you and your success
A free page dedicated to your business
Investor groups regularly surf crowdfunding platforms
Feedback and sense of community
Cheerleaders for your brand
Marketing!

17. Learn more about these guys with
Joe’s blog post “What are You Really
Getting with Equity Crowdfunding?”
in the resources widget
Accredited
Investors
Equity
Crowdfunding

18. Equity Crowdfunding
History
More than a dozen states have written their own crowdfunding laws

19. Crowdfunder
• $194M in deals
• 21,700
companies
• $299 monthly
fee
• Requires term
sheet, investor
pitch deck and
summary
CircleUp
• Consumer & retail
• Requires $500K in
annual sales
• Funding takes 2-3
months
• On-site experts
• Both rewards &
equity-based
campaigns
• $179 fee for equity
campaigns
• Fee plus 3.5% per
transaction for
rewards-based
campaigns
Fundable
Equity Crowd
Platforms

20. What types of businesses do well on the site?
How much support is offered?
What are the revenue requirements?
Is there an active community of investors?
Questions to Ask
Equity Platforms

21. Selling off part of your company
Puts you on the radar of venture
capital and private equity firms
Equity platforms entering IPO market
You may have to share control and profits
Priceless advice
Try rewards-based crowdfunding first
Equity
Crowdfunding

22. Open the resources widget to read Joe’s blog post about Mine Shaft’s success
Start-Up
• Asked for $400K seed
• Raised $665K in 4
months
Equity
Example

23. Investors go straight to the source to
invest in small business & personal loans
The platform acts as the online administrator
Peer-to-Peer
Lending

24. Lending Club
• $1B every 3
months
• Allows non-
accredited
investors
• $35K personal
• $300K business
• Fixed rates
Lendoor
• Crowdlender
• (combines CF & P2P
models)
• Borrower decides terms
• Anyone can invest
• Business only
• $50K max
• Auction model
funds at lowest
rate bid
• Focus on veterans
• Platform invests
5% in every loan
StreetShares
Peer-to-Peer
Platforms
Open the resources widget
for Joe’s comprehensive list
of major peer-to-peer
platforms.

25. Is there a pre-payment penalty?
Are rates fixed or is there an auction process?
What are the terms?
Can non-accredited investors participate?
Questions to Ask
Peer-to-Peer
Platforms

26. It’s debt that has to be repaid
Very high interest rates on short terms
Relatively fast and easy
Most loans funded within a day
60% approvals
There are predatory platforms targeting
small business owners–educate
yourself
Doesn’t compare to benefits of crowdfunding
Peer-to-
Peer

27. Open the resources widget to read Joe’s blog post about Combat Flip Flops
Start-Up
$30K for 3 years
23% interest rate
Paid off early
200-400% yearly growth
Peer-to-Peer
Example

28. Use the Whole
Crowd
Many companies use a mix of equity and debt funding
Crowdfunding offers marketing, outreach and exposure
Peer lending is fast and flexible

29. Today’s webinar sponsored by
Ask
Joe
Connect with Joe and other business owners in the Manta community
Chat with Joe on Twitter immediately following the webinar
#mantaexperts
Open the resources widget to get more information about our April webinar

30. Manta believes in empowering small businesses to achieve success.
We’re inspired by your determination and energy. And we understand
that every company is unique.
We strive to provide the marketing tools and educational resources
you need to stand out, connect with your customers and your peers,
and grow your business.
Send us a note and let us know what you’d like to learn from upcoming
webinars like this one.
events@manta.com