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“Building Community around Local Economic Development”
Copyright © 2014 Main Street Crowd - Confidential
Crowdfunding developed from crowdsourcing…
… the collection of funds through small contributions from many parties to finance a particular project
© CrowdCulture.se
What is Crowdfunding?
Donation – Charities (Red Cross, Salvation Army, Church)
Rewards – Creative, film, music, community infrastructure, inventions,
small business
Debt – Peer-to-peer, peer-to-business lending (Mosaic, Prosper)
Equity – JOBS Act – Rules still being finalized – State rules on equity crowdfunding coming soon!
Types of Crowdfunding
NM residents can invest – DL or State ID, property tax on primary residence, voter
registration – Invest any amount, file a form if over $10,000
NM for-profit companies can raise – NM company with minimum of 80% of assets, revenue, &
expenditures in NM – Limited applicability for public entities
Reasonable requirements for issuers – Similar to federal but much less expensive
Proposed New Mexico Rules – Intrastate CF
What has Worked in Debt Crowdfunding?
Two companies are working to develop standardized credit screening for commercial &
industrial PV projects:
• Specializes in solar energy • Leading solar energy investment
platform • 2014 Renewable Energy
Crowdfunding Conference this month, only Mosaic from the USA
• BUT in July, 2014 they hired a new CEO and changed focus to residential because it is much easier to assess the credit risk; they use a FICO credit score
Who to Watch
Albuquerque project
Leading foodservice distributor
to healthcare, government, and
educational institutions.
https://joinmosaic.com/browse-investments/us-foods-in-albuquerque-nm-29
Sells the electricity to U.S. Foods and the renewable energy credits to PNM
10-year annual energy production guarantee from the installer
Enough clean energy annually to power 56 New Mexico homes
Accounts for nearly 25% of the facility's energy needs
U.S. Foods Distribution Center
The Pinnacle Charter School (Denver)
Distributed Sun LLC (PPA) and Mosaic
657 kW solar installation
Earns an estimated 5.4% annually for
individual investors
43% of the school’s electricity
https://joinmosaic.com/blog/check-out-these-schools-put-solar-it-2013/
The Pinnacle Charter School
Estimated $14,000 in energy savings in the first year
Saves as much as $1.6 million in electricity costs over the lifetime of the
project & teaches thousands of K-12 students about clean energy
What Works in Rewards Crowdfunding?
• Platform almost doesn’t matter; it’s about the project • Community Organizing! More and better ways to get the
word out to the public – Business participation, face-to-face contact, events, publicity
• Solar projects are “local” – most likely to be supported locally • Engaged & interested local crowd that cares • Work for Public/Private partnerships
– Governmental grants – Private grant money – Corporate matching pledge challenges – Endorsements
Withstands the heaviest of trucks (250,000 pounds)
Install on roads, parking lots, driveways, sidewalks, bike paths, playgrounds
Power homes and businesses connected via driveways and parking lots
https://www.indiegogo.com/projects/solar-roadways
Solar Roadways (Invention)
Solar panels that you can drive, park, and walk on. They melt
snow and cut greenhouse gases by
75-percent
What People Think about Crowdfunding
“If you build it, they will come.”
Or, maybe not
Philadelphia Solar Schools Initiative Bring solar power and renewable energy education to schools with no up-front costs (solar panels, wind power, and courses for students) 20 school solar rooftops totaling 1.5 MW
Students help with design, development, and installation
Funds largely spent on salary and supplies for a new director position
Overused rewards (coffee cups, t-shirts) http://www.indiegogo.com/projects/philadelphia-solar-schools-initiative
What Doesn’t Work
Main Street Crowd is …
… a hyper-local delivery platform that gives every community its own website to connect people around local worthwhile economic development initiatives and provide access to every tool for capital acquisition and local investment.
• Equity & R/E • Service Providers • Entrepreneurial
Resources … and more
Who We Serve
Community organizations – Chambers, business associations, EDC, CDC, SBDC, Main Street organizations,
incubators/accelerators, governments, public health groups, fire departments, historical societies, etc.
Professionals & Business Advisors National affinity groups
– Veterans & Women’s Business, First Responders, Railroad Reclamation, Historic Restoration, Public Health, Cemetery Associations, Technology, etc.
Lenders (bank and non-bank) Concerned businesses and involved citizens
A Good Alternative for Local Clean Energy
Free, branded sites (Clowdz®) through local, trusted organizations Unique, built-in rewards crowdfunding functionality It’s local – an advantage in spreading the word about projects Low Cost/Give back – 30% of fees back to the clowd host or project Great visibility – the single biggest problem for projects, getting seen Close counts – 90% + extends the project deadline for a week Corporate matching pledge challenge functionality Endorsements by organizations by virtue of matching pledges Pledge without registering – quick, simple Pledges “on behalf of” (take checks and acknowledge backers) Sophisticated “Remind Me” functionality CrowdCreditsTM on Crowdfunding4All (CF4ALL.com) Multi-project real-time campaign capability in clowdz (live events)
