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ALTERNATIVE FINANCECrowdfunding
An Overview With Gary O. Shelton
Crowdfunding IN 2015The new normal for small business finance
INTRODUCTION:Gary O. Shelton was recruited at 12th Annual Auto Industry Summit, after a national research to: Develop strategy for Rainbow PUSH’s new initiative Help Tier 1 suppliers improve their minority supplier
development programs Provides support to major national companies in the area of
supplier excellence-diversity Customize the development of the program to fit the client’s
unique needs
The Supplier Excellence-diversity Program is designed to:
Assist the sponsoring agency to increase spend with diverse companies;
Expand the base of well-qualified suppliers Expand the base of well-qualified suppliers familiar with
emerging technologies, such as Solar Support the efforts of prime contractors to find well-qualified
subs Support community small business outreach as part of a
corporate responsibility plan
DISCLOSURE
§ This presentation should not be considered in any way an offer to buy or sell a security.
§ Buying or selling a security involves substantial risk. Investors could lose some or all of the original investment. Seek professional advice before you make any investment.
§ This presentation is for informational purposes only.
§ Securities offered through JCC Advisors. Member FINRA/SIPC.
Gary O. Shelton
What is Crowdfunding?
Google defines it:
crowd・ fund・ ing ˈkroudˌfəәndiNG/
The practice of funding a project or venture by raising small amounts of money from a large number of people via the Internet.
Categories of Crowdfunding:
Art, Comics, Dance, Design, Fashion, Film & Video, Food, Games, Music, Photography, Publishing, Technology, Theater.
Jumpstart Our Business Start-upsAPRIL 2012
The 2012 JOBS Act enabled both accredited and unaccredited investors to use the Web and social media to make investments in entrepreneurs…-FungInstitute.Berkeley .edu
Crowdfunding market is growing fast…
» 2012:
Crowdfunding platforms raised $2.7B (an
81% increase) >1 million campaigns
» 2013:
Global Crowdfunding tops $5.1B
Crowdsourcing.org/Massolution
$ 2.7 B
$ 5.1 B
Note: BY comparison Reg D private placement market in 2012 raised $800 billion in capital --
CF is already a very crowded space…Did Someone Say ‘Dot-com-land?’
Crowding up the old rapids…
Break-even
Struggling
Succeeding
Crowdfunding
The 4 types of Crowdfunding
Need to repay
Don’t need to repay
Lending
based
Equity based
Donation
based
Reward
based
4 CF Platfor
m group
Cost $ = APR rates: 6% - 35%*Good Credit Score* Kiva = 0% interest loans
• Cost $ = 4% to 9%(plus 3% escrow)• Postage, Taxes, Time
AccreditedInvestors(high networth)
1 create cf application/campaign
Which type of Crowdfunding should I use?
Reward/ Donation
Seeking <
$50k
Cost:4%-9%
Cost: APR
6% - 35%
Seeking
> $50k
Equity/Lending platforms
Choices:• Start-up company vs existing company• Specific Project Funding• Need for Newco Capital
Reward/Donation
“All or Nothing”5% (+3% CC
Fee)
Notable Equity CF Leaders
List Of Crowdfunding Platforms
Platforms Top 10 Equity Crowdfunding Websites For Startups
Top 5 Crowdfunding Sites for Gamers
Top 6 Crowdfunding Sites for Artists and Bands
5 Crowdfunding Platforms For Mobile Apps
Top 6 Personal Cause Fundraising Websites
Top 10 Crowdfunding Sites for Nonprofits
10 Best Kickstarter Alternatives
.com
Is Crowdfunding your future?
Gary O. SheltonContact Information:
Telephone no.:
1-213-858-6612
Web:
www.garyoshelton.com