Crowdfunding & Capital Access
…for Entrepreneurs & Small Businesses
Small business owners and entrepreneurs are excited about changes in federal law (the Jump Start Our Business Startup Up Act – JOBS Act) that allows for equity and debt-based crowdfunding. What is crowdfunding and how can you prepare for it? While SBE Council works to get JOBS Act rules finalized, we encourage you to learn more about the “how to’s” of crowdfunding and how your business can benefit from this financing strategy.
Small business owners and entrepreneurs are already raising capital through rewards-based and gift-based crowdfunding. See how and if your business can begin to raise funds through this innovative strategy starting now. UPDATE: On September 23, the SEC rule lifting the ban on general solicitation (Title II) took effect. Title II allows entrepreneurs and startups to broadly market and advertise their offerings. Read all about it, including advice and general guidance for entrepreneurs by clicking here.
SBE Council submitted comments to the SEC on proposed Title III crowdfunding regulations. The comments can be found here. In an article following the comment period deadline (February 3, 2014), Entrepreneur.com looked at recommendations made by commenters for improving the regulations (which included key points by SBE Council). Our goal is to ensure that the SEC’s regulations align with the intent of Congress and President Obama in advancing the JOBS Act – that is, creating an accessible and affordable mechanism to allow start-ups and entrepreneurs to more easily identify and secure investment capital.
Here are some trusted Crowdfunding resources vetted by the SBE Council team:
Crowdfunder’s Knowledge Center: This center, developed by one of the leading platforms for crowdfunding – Crowdfunder, answers some of the common questions you may have about crowdfunding and provides great tips and guidance. What is business crowdfunding? What is the difference between contribution and securities-based crowdfunding? What are the common misconceptions about crowdfunding, and the keys to campaign success? These answers and more are available in The Knowledge Center.
Crowdfund Capital Advisors: This resource-rich website of “the three guys” who led the charge to make equity and debt-based crowdfunding legal has great information – free resources and tips, as well as items to purchase. Sherwood Neiss, Jason Best and Zak Cassady-Dorion (members of SBE Council) are successful entrepreneurs, and are now helping entrepreneurs around the world tap into the power and promise of crowdfunding. See: Why is September 24 a Huge Day for Entrepreneurs,
Indiegogo Help Center: A concise and resource-rich hub that covers the key components of what makes a crowdfunding campaign successful.
Kickstarter School: An 8-point lesson plan and resource tool for implementing a successful crowdfunding campaign.
Crowdfund Your Start-Up Venture: On January 28, GIST Connect and the U.S. State Department hosted this informative and lively webcast on crowdfunding. The webcast, in its entirety, can be viewed by clicking here. The webcast featured SBE Council President & CEO Karen Kerrigan and top crowdfunding experts. It was viewed by thousands across the globe, and includes content relevant to entrepreneurs who do business anywhere. Great tips, trends and information on how to crowdfund!
Building Your Business With Crowdfunding: This SBE Council special “Business Success Strategies” Q&A featuring Chance Barnett, founder of Crowdfunder, explains crowd investing, and helps small business owners understand the mindset of investors, and how to prepare for crowd investing.TEDx: Enabling Entrepreneurship Through Crowdfunding – In this TEDX talk SBE Council member Jason Best, one of the “three guys” who crafted the crowdfunding legislation, reviews the importance of crowdfunding to growing the economy, innovation, job creation and enabling entrepreneurship. Best covers the genesis of crowdfunding and the legislation (the JOBS Act) that changed the rules to make equity and debt-based crowdfunding a reality.
Preparing for the Crowdfunding Revolution, by NOW Street: A webinar/slideshow produced by Now Street that takes you through the details of the JOBS Act, and what you need to do to prepare for investment crowdfunding. To view the slideshow, please click here.
Crowdfund Investing For Dummies: This book, written by SBE Council members Jason Best, Zak Cassady-Dorion and Sherwood Neiss, walks entrepreneurs and investors through investment crowdfunding — explaining how and why it developed, and the details of the 2012 JOBS ACT.
Entrepreneurs will find out how much funding they can realistically raise through equity and debt-based crowdfunding; how to plan and launch a campaign; how to manage the crowd after a campaign is successful; and how to work within the SEC’s regulations at every stage.Investors will discover: the benefits and risks of crowdfund investing; how much they can invest; how such an investment may fit into a broader investment portfolio; how to provide value to the business or project being funded; and how to bow out of an investment when the time is right. Crowdfund Investing For Dummies is an indispensable resource for long time investors and novice investors alike.
Early Shares University: This resource is a free service offered by Early Shares, a crowdfunding platform, which is designed to help investors and business owners take full advantage of crowdfunding. Topics covered include: What is Crowdfunding? The Offering Process. Accounting for Businesses. Investing and the Investing Process. A Glossary of Terms. Videos and and an Experts Lounge.
CrowdCheck Education: CrowdCheck, a service that offers a weapon against potential fraud and helps investors make good investment decisions, has a dedicated area of its website for investors and issuers. The site offers an explanation of terms, articles, useful reports and podcasts.