Crowdfund investing uses social networks and community financing to allow private businesses to raise money from unaccredited investors through websites. It has the potential to become a $300 billion per year market in the US. Recent data shows that over 50% of crowdfunded deals are outside major coastal cities, 40% raise under $1 million, and the median time to close a deal is 60 days. Crowdfund investing creates a new global economic ecosystem called "Crowdfunomics" that can ignite entrepreneurship, drive innovation, and stabilize societies by connecting communities and allowing them to invest in companies and industries they support.

1. ™
CROWDFUNOMICS:
THE GLOBAL POTENTIAL OF
CROWDFUND INVESTING
JASON W. BEST + SHERWOOD NEISS
CROWDFUND CAPITAL ADVISORS
@CrowdCapAdvisor

2. WHAT IS CROWDFUND INVESTING?
SOCIAL
NETWORKS
+
COMMUNITY
FINANCING
= WEB 3.0

3. CROWDFUND INVESTING IN THE US
Pre-2012 Illegal for private businesses to raise
money publically from unaccredited
investors
April 2012 The JOBS Act – Democratizing Access
to capital
Now CCA and industry working with the
SEC, FINRA, White House and
Congress to finalize rules
Late 2013 Crowdfund Investing goes live …
$3.8B or $300B/yr market?

4. RECENTLY PUBLISHED U.S. DATA
What are the results over 1,000 closed
deals over 6 years?
• More than 50% of deals not on coasts
• 40% of valuations below $1M
• Median deal close time: 60 days
• 70% of companies had $0 revenue
March 6, 2013 www.careerfuel.net
#crowdfunomics

5. A NEW GLOBAL ECONOMIC ECOSYSTEM
™
CROWDFUNOMICS
Analyzes and describes the economic impact of crowdfunding,
on the new global ecosystem that harnesses communities of
interest, origin, geography and diaspora, via the power of the
social Web, to drive innovation, job growth and socio-economic
development.
Crowdfunomics ignites entrepreneurship and stabilizes societies
by delivering the infrastructure within which networks and
relationships can develop, based on trust, expertise and access
to capital.
#crowdfunomics

6. THE CROWDFUNOMICS ECOSYSTEM
EXPANDED COMMUNITY VIA SOCIAL WEB
COMMUNITY
TRANSPARENCY CAPITAL FUTURE RETURN ON CAPITAL
= TRUST
CROWDFUNOMICS INFRASTRUCTURE
YOU REGULATION FOR COMMON
RULES & STANDARDS
#crowdfunomics

7. A NEW BUSINESS CASE FOR SOCIAL
Converting fans/likes/tweets into
capital and active customers/investors
The social Web can now drive broader
innovation, job growth and
socio-economic development
#crowdfunomics

8. COMMUNITIES
The social web can now connect communities of interest, origin,
geography and diaspora, providing infrastructure for them to invest
capital in entrepreneurs, companies and industries they believe in.
Traditional friends
& family financing
Crowdfunomics provides the
infrastructure to reach your
network of people who would
invest in you, but also to draw
upon their networks to invest.
Financing through crowdfunomics
#crowdfunomics

9. ENTREPRENEURSHIP DRIVES ECONOMIES
Virtually every government spends
significant money and time trying to
develop entrepreneurial ecosystems
Crowdfunomics ignites entrepreneurship
which stabilizes societies
#crowdfunomics

10. RELATIONSHIPS + TRUST
Without the ability to form and
maintain trusting relationships,
crowdfunomics fails.
Crowdfunomics creates the
infrastructure within which these
networks and relationships can develop.
#crowdfunomics

11. FACTORS FOR SUCCESS
Regulation & Communication:
Regulation that supports transparency
Investor communication that builds trust
#crowdfunomics

12. INTERNATIONAL TRENDS
• Development organizations seeking new
strategies
• US State Department sees this as major
opportunity
• Capital flows
• N/S
• S/S
• It needs to be localized and customized for
• Investors
• Cultures
#crowdfunomics

13. CROWDFUNOMICS IS HAPPENING
Chris Tyrell
• Australian Small Scale Offering
Board (ASSOB)
#crowdfunomics

17. CROWDFUNOMICS INFRASTRUCTURE
• 21 questions countries must answer
• Strong implementation methodology
required
• An answer to the “last mile problem”
• A new solution for all types of
businesses
#crowdfunomics

18. FINAL THOUGHTS
• U.S. has window of opportunity that is
closing
• Developing countries can “leapfrog”
• If social media can change governments,
funding and growing companies is easy by
comparison
• Entrepreneurs – Business – Jobs
• #crowdfunomics can promote success
#crowdfunomics

19. THANK YOU
Questions or comments?
@CrowdCapAdvisor
www.theCCAgroup.com
jason@theCCAgroup.com
sherwood@theCCAgroup.com
#crowdfunomics