How to use Direct public offerings and crowd funding to finance your company

1. Mark@WebSummits.com
CrowdFunding &
Self-Directed IRAs
A Natural Marriage
Accuplan Webinar
May 15, 2013 ~ San Francisco

2. Today’s Objectives
1 - Discuss two types of
CrowdFunding :
Rewards and Equity
2 - And why should you care?

3. Two Types Of CrowdFunding
Two Types Of CrowdFunding

4. What Is CrowdFunding?
 Anyone that needs funds for a
project
 Uses social media to ask friends
and strangers for money
 This resulted in a record $2.81
Billion given to people in 2012

5. Annual CrowdFunding Volume

6. $2.81 Billion CrowdFunded
Who’s
interested
now
?

7. Benefits Of The Crowd
 Likes promising products
 An Inexpensive focus group
 Joins others with shared
values
 Can pledge small dollars
quickly

8. What & Where Is It Legal?
In the US
only rewards
crowdfunding is legal.
Overseas
both rewards
and equity are legal.

9. 2010 Petition On The SEC Website
Starts US Equity CrowdFunding

10. Summer 2011 Congressman Patrick
McHenry R NC Authors The Bill

11. April 5, 2012 President Obama Signs
It In A Rose Garden Ceremony

12. June 2012 “Equity CrowdFunding
May Swell To $300 Billion”
Forbes - Fred Wilson the
legendary partner of
Union Square Ventures
predicts CrowdFunding
will unleash $300 billion
to entrepreneurs …

13. Is The JOBS Act
The Game Changer?
“it allows advertising to
accredited investors,
but only limited advertising to
non-accrediteds ”

14. CrowdFunding Protections
For Non-Accrediteds
• Investment amounts limited for
non-accredited investors
• Companies may only invite crowd
to approved platforms
• Companies may not advertise details
of offering on social media

15. So If Not CrowdFunding;
What’s The Game Changer?
Company
with an Idea
The Public
?

16. Social Media
Is The Game Changer
Company
Non-
Accrediteds
With IRAs
To Invest
Social Media

17. The Growth of Social Media

18. Funding On Social Media

19. Laws For Companies
To Raise Equity
Current Laws
 Private offering to friends
 self-underwritten offering to the public
 investment bank does IPO to the public
New Laws (when final)
 CrowdFund to non-accrediteds
 Advertise to accrediteds

20. Newsflash! Companies Can Already
Advertise Direct Public Offerings
To Non-Accrediteds
 Existing laws allow DPOs to be
advertised on social media
 Non-accrediteds can invest
 Companies including Ben & Jerry’s
did a DPO before their IPO

21. 5 Steps To Get Growth Capital
From The Public ~ If They Love The
Company
1 Build a crowd and nurture relationship
2 Report continuous business progress
3 Get 3rd party credibility (press) to build
confidence & trust
4 Get public offering permit from state or SEC
5 Sell shares on social media using online
marketing

22. An Investor Exit Is Imperative
Company is bought later by a public company
and DPO investors get traded stock
Or
Company shares begin trading
and DPO investors can sell
their shares through any online broker

23. Mark@WebSummits.com
CrowdFunding &
Self-Directed IRAs
A Natural Marriage
Accuplan Webinar
May 15, 2013 ~ San Francisco