Agenda Customary Methods Customary Methods Basic Types
Considerations New Method New Method What is it? Overview
Comparisons How does it Work? Basic Types Requirements Examples
Sources
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Equity Financing Debt Financing
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Equity Financing Equity Partners Controlling Interest
Shareholders Company Ownership Debt Financing loans Collateral Debt
service payments
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U Uses Social Networks Virtual process Universal appeal
(national and international) Crowdfunding, or Crowdsourcing
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What is it? Similar to pier-to-pier lending, but you do not
know the other individual Someone gives you money with no
obligation on your part to pay it back! The supporting community is
asked to support the project
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A Million High Fives, the largest electronic supply and
volunteer drive in America. A Million High Fives Out-founded by
Crowfunding by a 3:1 ratio over the past three years. Has been
around for at least six years, gaining in popularity exponentially.
Many new facilities have surpassed $10M funding in first year of
operation At least 11 reputable sites Over $20B successfully funded
in the past eight years
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Requirements TraditionalCrowdfunding Comprehensive Business
PlanYesNo Sources Uses
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Requirements TraditionalCrowdfunding Comprehensive Business
PlanYesNo Financial Forecasts & Pro FormaYesNo
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Requirements TraditionalCrowdfunding Comprehensive Business
PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral /
Guarantees / PledgesYesNo
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Requirements TraditionalCrowdfunding Comprehensive Business
PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral /
Guarantees / PledgesYesNo Credit / SolvencyYesNo
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Requirements TraditionalCrowdfunding Comprehensive Business
PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral /
Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or
own-fundsYesNo
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Requirements TraditionalCrowdfunding Comprehensive Business
PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral /
Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or
own-fundsYesNo Equity position / Controlling interestYesNo
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Requirements TraditionalCrowdfunding Comprehensive Business
PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral /
Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or
own-fundsYesNo Equity position / Controlling interestYesNo Investor
buy-outYesNo
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Requirements TraditionalCrowdfunding Comprehensive Business
PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral /
Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or
own-fundsYesNo Equity position / Controlling interestYesNo Investor
buy-outYesNo Business synopsisNoYes
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Requirements TraditionalCrowdfunding Comprehensive Business
PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral /
Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or
own-fundsYesNo Equity position / Controlling interestYesNo Investor
buy-outYesNo Business synopsisNoYes Revenue SharingNoYes
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Sources Uses
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1. Publish a project 2. Does not require comprehensive Business
Plan 3. Establish $$$ needed, and timeline 4. Offer reward 5.
Collect funds meeting or exceeding target An Assurance Contract
returns contributions
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Voluntary Contribution based on project support Reward Driven
or Revenue sharing no need to release financials Multiple uses
Integral part of social commerce
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Project Based Definitive start & end period Music, Films,
books, fund raising, construction, exploration, trips, research,
etc Enterprise Start-ups Operations Product development and
roll-out Working capital
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Project Rewards Special offers (no discounts) Limited offerings
Enterprise Revenue sharing
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Kickstarter.com
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WickedStart.com
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At least one (1) Tweet every ten minutes on projects Facebook
universe LinkedIn groups
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o Rockethub.com o Profounder.com o Peerbackers.com o
Kickstarter.com o Indiegogo.com => for film or music industry o
Quirky.com => for inventors o Invested.in.com