This document discusses crowdfunding as a way to raise money for a business. It begins by explaining what crowdfunding is, which is raising money beyond one's direct network through social media. However, crowdfunding does not mean easy money without rules. The document outlines the essentials of crowdfunding, including a $1 million limit per offering, conducting offerings online through a portal, requiring disclosures and filings to the SEC and state regulators, and limiting how much individual investors can contribute. Alternative funding options like Regulation A and Rule 506(c) private placements are also briefly mentioned.

1. CROWDFUNDING YOUR
BUSINESS
CROWDFUNDING YOUR
BUSINESS
Ryan Miest
Todd Taylor
Fredrikson & Byron, P.A.

2. What Crowd Funding Isn’t
© 2015 Fredrikson & Byron, P.A.

3. What Crowdfunding Is
© 2015 Fredrikson & Byron, P.A.

4. Agenda
• Crowdfunding
– SEC
– MN
• Alternatives
– Rule 506(c)
– SCOR
– Regulation A
– Intrastate
• Q&A
© 2015 Fredrikson & Byron, P.A.

5. Universal Truths
• “Crowdfunding” Means
• Ability to go beyond your direct
network to raise money
• Social media generally okay
• Not just for the rich “angel” investor
© 2015 Fredrikson & Byron, P.A.

6. Crowdfunding Doesn’t Mean
• Easy money from anyone, anywhere,
anytime
• Free of state and federal rules
• Low cost
• Easy to do
© 2015 Fredrikson & Byron, P.A.

7. Crowdfunding Essentials
• $1,000,000 limit
• Conducted online
• Trough a portal
• Disclosures to investors required
• SEC and state filings required
• Investor limits
• Finders not allowed
© 2015 Fredrikson & Byron, P.A.

8. $1,000,000 Offering
© 2015 Fredrikson & Byron, P.A.

9. Questions?
Please feel free to contact Ryan Miest
(612.492.7393 or rmiest@fredlaw.com)
or anyone in the SURGE group if you
have any questions.
www.fredlaw.com
© 2015 Fredrikson & Byron, P.A.