WaterField Design’s Intrepid iPhone Travel Wallet Shatters Kickstarter Goal by Reaching 600% on First Full Day

24 Aug

New backers may pledge for the one-of-a-kind Intrepid iPhone Travel Wallet — an RFID-blocking wallet, play-through iPhone case and travel attaché — through Kickstarter until September 25

By Robert Hoskins

San Francisco, California –  The WaterField Designs new Intrepid Travel Wallet shattered its crowdfunding goal by reaching 600% within its first full day after launch. The Intrepid is a leather, all-in-one travel case with iPhone play-through capability for scanning QR codes and downloaded tickets, or for checking texts, emails, and apps. The interior includes Intuitive organization compartments for passport, tickets, foreign exchange and coins. Having now reached nearly 750% of its initial funding goal, WaterField continues to add pledge options to meet growing demand. The Intrepid Kickstarter campaign runs through September 25, 2016.

Intrepide iPhone Travel Wallet from WaterField Designs

Intrepid iPhone Travel Wallet from WaterField Designs

“We’re floored and gratified to have achieved such success with our first Kickstarter campaign in such a short amount of time,” explained Gary Waterfield, company owner. “The Intrepid iPhone Travel Wallet is more than just a wallet or a phone case; it’s really an amazing travel companion. Its play-through feature is incredibly useful and becomes quickly addictive as you begin to see how efficient you can be with it.”

The Intrepid Travel Wallet is at once a wallet, iPhone case and a travel attaché. As a wallet, two interior side pockets hold credit cards, hotel keys and metro tickets; its main compartment is large enough for domestic or foreign bills and a pen. Built-in RFID-blocking capability offers extra security while traveling about. An included zippered pouch, the Micro Wallet, fits inside the main compartment to secure coins or keys. As an iPhone case, the Intrepid’s revolutionary play-through, scannable screen allows users to access the phone for texts, emails and apps, and to scan a boarding passes without removing the phone.

The Travel Wallet holds all this plus a passport in a custom-sized pocket in one organized place, as any good travel attaché should. The Travel Wallet saves time at TSA checkpoints and fits neatly in an airline seat-back pocket for easy access to in-flight necessities.

The Intrepid Travel Wallet is available in two sizes, one designed for the imminent iPhone 7 or similarly-sized phones and one for phones the size of the iPhone 7 Plus. An Ultrasuede ® liner keeps phones and other contents scratch-free and a handsome and heavy-duty G2 metal zipper keeps contents secure. A designated iPhone enclosure with transparent play-through screen, a special passport pocket and dual card pockets keep travel-related needs neatly organized.

Supporters may choose a black or brown premium full-grain leather exterior. Through this — its first Kickstarter campaign — WaterField builds on a seminal aspect of its business by allowing pledged supporters the opportunity to help determine final design details: an additional color and other features may be added based on backer’s feedback.

The WaterField Designs Intrepid Travel Wallet is available as a reward via the WaterField Designs Kickstarter page. Supporters may pledge until September 25, 11:59 PST and the first production run ships October 2016.

# # #

Kite Shield Equity Crowdfunding Campaign Promises to Make Humans Nearly Invisible to “aedes egeypti” Mosquitoes that Carry the Zika Virus in Florida

23 Aug

Kite Shield is a 100% DEET-free spray which when applied renders humans virtually invisible to mosquitoes (including aedes egeypti) by blocking the mosquito’s olfactory sense of smell which it uses to locate humans

By Robert Hoskins

Riverside, CA – ieCrowd announced that it is conducting an equity crowdfunding round conducted on Crowdfunder.com that has already surpassed its goals twice within two weeks of its listing, and the company is already into its third extended funding mode. ieCrowd has two breakthrough technologies including one that gives cell phones the sense of smell and a spray that makes humans practically invisible to mosquitoes. ieCrowd’s campaign can be found at https://www.crowdfunder.com/iecrowd.

Kite Shield: DEET-free Mosquito Repellent Spray is an effective, 3rd-party validated mosquito repellent that is shipping now as the result of a 2013 Indiegogo crowdfunding campaign that raised $587,884 from 12,131 backers that funded the project to 743% of its original goal on August 30, 2013.
Kite Shield, is a 100% DEET-free spray which when applied renders humans virtually invisible to mosquitoes (including aedes egeypti that carry the Zika Virus)

Kite Shield, is a 100% DEET-free spray which when applied renders humans virtually invisible to mosquitoes, including aedes egeypti that carry the Zika Virus in Florida

ieCrowd has also broken into “CNBC’s Crowdfinance 50 Index,” rising rapidly to emerge within the top 10 companies employing crowdfunding to finance its growth.

“We are thrilled that allowing individual investors, and not just big banks or funds, to invest in a company dedicated to addressing some of our biggest global health challenges is resounding so well,” said Amro Albanna, CEO of ieCrowd. “Our leadership in the concept of ‘crowd capitalism’ is growing a significant community of investors worldwide.”

The company’s lead product, Kite Shield, is a 100% DEET-free spray which when applied renders humans virtually invisible to mosquitoes (including aedes egeypti that carry the Zika Virus) by blocking the mosquito’s olfactory sense of smell which it uses to locate humans.

ieCrowd’s second technology, Nuuma, is a nanotube chip that gives cellphones and other smart devices the ability to smell by enabling such devices to measure air pollution, alcohol in exhaled breath, food spoilage and even bad breath. Additionally, using Nuuma to potentially detect various diseases at their earliest stage through breath analysis is of key interest to several leading medical institutions.

ieCrowd is a company focused on bringing health innovations to the marketplace. ieCrowd partners with leading research institutions and scientists to secure commercialization rights to develop life, health, and wellness innovations into transformative products. For more information about ieCrowd, visit http://www.ieCrowd.com or call 951-824-8669, ext 1503.

# # #

 

Singapore Equity Real Estate Crowdfunding Deal Funds Malaysian Mixed Residential Property in Just 28 Seconds

23 Aug

CrowdTwo.com is a property website in Singapore that allows users to buy, sell and rent Singapore properties or invest in global properties starting from a $100

By Robert Hoskins

Singapore – CrowdTwo.com, a Singapore equity crowdfunding site, announced that they have fully crowdfunded a second property in record time. The Malaysian mixed residential property was fully funded in just 28 seconds. This is another major milestone for the Singapore properties website in which users can CrowdInvest in global properties.

Singapore Equity Crowdfunding Site CrowdTwo Funds Malaysian Mixed Residential Property in 28 Seconds

Singapore Equity Real Estate Crowdfunding Site “CrowdTwo” Funds Malaysian Mixed Residential Property in 28 Seconds

The Singapore property portal differentiates themselves from other crowdfunding sites by allowing investors to sell their shares, full or partial, at any time, reducing the risk of holding on to the property for years without seeing any returns.

Of the company’s recent success, CrowdTwo CEO Eric Teng said, “This is a major milestone for the company and demonstrates the strong support from our users. Our strength in big data and crowd leverage has provided our company an edge when it comes to sourcing excellent global property deals.”

To celebrate this milestone, CrowdTwo is opening access to their proprietary Singapore properties valuation engine CrowdReport to all users. This allows users to check the median price of any property in Singapore so that they too can source for excellent property deals.

CrowdTwo.com is a property listings website in Singapore that allows users to buy, sell and rent Singapore properties or invest in global properties starting from a hundred dollars. They are the first Singapore social property startup that users can CrowdInvest in.

Looking for more real estate crowdfunding investment opportunities? Check the Top 25 Real Estate Equity Crowdfunding Sites.

# # #

RealtyShares Taps 75 Investors to Raise $1.5 Million for 192-Unit Family Apartment Complex in Columbus, Ohio

23 Aug

Real Estate Equity Crowdfunding Funds Cardinal Creek Townhomes, which has a 70% Occupancy Rate and Close Proximity to Major Employment Centers and Adjacent to a New School/Sports Complex

By Robert Hoskins

San Francisco, CA – RealtyShares has raised $1.5 million dollars for a 192-unit multi-family complex in Columbus, Ohio from its national network of investors. The deal was sponsored on the platform by Hamilton Real Estate Capital, a value-oriented investment firm focused on medium to large apartment complexes. More than 75 investors took part in the raise for the Cardinal Creek Townhomes in Bexley to fund the renovation, maintenance, and management of the 35 buildings on the $5.9 million property.

Real Estate Equity Crowdfunding Used to Fund Cardinal Creek Townhomes, which has a 70% Occupancy Rate and Close Proximity to Major Employment Centers and Adjacent to a New School and Sports complex

Real Estate Equity Crowdfunding Funds Cardinal Creek Townhomes, which has a 70% Occupancy Rate and Close Proximity to Major Employment Centers and Adjacent to a New School/Sports Complex

“We believe this project will provide our investors with an attractive return profile given the risk,” said Eli Glanz, Principal at Hamilton. “Working with RealtyShares has given us access to a new group of investors in a straight-forward and quick process. We felt the amount of equity needed and the rationale for the investment was the perfect fit.”

Since this is an equity deal, the return ultimately realized by investors will depend upon the distributions from the project and the value of the property whenever it’s sold. While this is the first deal on the platform for Hamilton, it is the second notable crowdfunded project in Columbus in recent months. In June, 80 of RealtyShares’s investors funded over a million dollars of joint venture equity for the purchase of Courtyard by Marriott Columbus West.

“Columbus, and Bexley in particular, is seeing tangible rent growth and a falling vacancy rate with minimal new inventory slated to open,” said Bryan Shultz, Vice President of Commercial Equity at RealtyShares. “The Cardinal Creek Townhomes location is intriguing, with close proximity to major employment centers and adjacent to a new school and sports complex. The property already boasts a high occupancy rate, with more than 70 percent of the units recently renovated. Most importantly, our investors are often compelled by strong track records, and Hamilton has owned or advised on over $350 million in assets like this since 2005. It is an ideal partner for a deal like this.”

RealtyShares, one of the top real estate crowdfunding sites,  is transforming the real estate investment landscape by connecting borrowers and sponsors to debt and equity capital from accredited and institutional investors, across an array of financing products. Private investments are highly illiquid and risky and are not suitable for all investors. Through the RealtyShares website, these investors can browse investment opportunities, perform due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing.

# # #

RED Mountain Resort Makes History to Secure Future via Title IV Regulation A+ Equity Crowdfunding

22 Aug

“Fight the Man. Own the Mountain.”

By Robert Hoskins

Rossland, BC – RED Mountain Resort, the oldest ski resort in Western Canada, is dropping into the history books this week. The fierce, independent mountain that is the first stop on British Columbia’s famous Powder Highway is bucking the trend of MegaResort mergers and acquisitions and taking its next capital campaign to the people via equity crowdfunding

RED Mountain Resort Makes History to Secure Future via Equity Crowdfunding Campaign

RED Mountain Resort Makes History to Secure Future via Equity Crowdfunding Campaign

RED’s equity crowdfunding campaign through StartEngine.com goes live August 23rd and will allow hardcore skiers, snowboarders and savvy investors to put their money where their heart is — and come away with actual ownership of a marquee ski resort.

On August 23rd, you can access the campaign page here. 

“RED started as a ski club that was owned by the community,” explains RED CEO Howard Katkov. “You can feel it in the spirit of the place, the camaraderie, the spark. We have done everything in our power these last 12 years to keep that flame alive and this StartEngine.com campaign is simply the latest expression of our intent to keep RED independent and thriving. Our shared community values and the current consolidation of the resort industry make NOW the perfect time to help save this ‘endangered species’. We’re ‘ReBooting’ the Red Mountain Ski Club Community Ownership Model from 1947 — only this time the clubhouse will have wireless!”


The sport of skiing truly has changed immeasurably in the last 20 years with luxury shopping malls at base areas, covered escalators to the lift line, water parks — with all of this ‘growth’ funded by skiers whether they support it or not. Regular ski families are routinely being priced out by corporate decisions made many time zones away from the mountain communities they affect. Skiing and snowboarding are now on the cusp of becoming pursuits for the elite like polo or Formula 1 and RED Mountain is keen to reverse this corporate tide before it’s too late.

“RED Mountain is an endangered species within the ski resort world,” says Katkov. “We have the snowfall, vertical drop and world-class terrain to go boot-to-boot with the Big Guys, but have consciously maintained our mom ‘n’ pop/weird uncle feel for over 100 years. We’re tired of seeing families priced out of a premier ski vacation by chains. And we think that RED Mountain’s preservation as a fiercely independent, non-corporate entity is beyond worthwhile.”

Round 1 of the equity crowdfunding campaign, which goes live August 23rd, is deemed “Test the Waters,” and parties can express interest in the investment without handing over any actual money now or later. (The “Test the Waters” phase is similar to a reservation or a hyper-convoluted “Like” Button and is 100% risk-free.) RED is setting the minimum buy-in at $1000, considerably lower than many tech and transportation offerings and startups on StartEngine.com.

When the Test the Waters campaign gains sufficient traction, RED will file an offering statement with the SEC in the United States and prepare a Canadian offering memorandum to launch RED’s offering with real dollars, actual equity, and unique perks are sure to appeal to ski and snowboard enthusiasts especially.

“This is truly a once in a lifetime opportunity,” says Katkov. “It’s never been done this way before, with a For-Profit ski resort soliciting community funding through equity crowdfunding, a kind of ‘third way’… We like to joke around the office that we’re going to be the Green Bay Packers of the ski world. It’s a legitimate opportunity to actually own every asset of this place: The mountain, the chairlifts, the lodge, snow making — you name it.”

RED Mountain Resort is coming off its best fiscal year ever with deep snow and sales up across all major categories. The last three seasons have seen the resort enter the big leagues by opening Grey Mountain and adding ~1,000 acres of skiable terrain in the process, putting it on par with Breckenridge and Jackson Hole, size-wise.

RED also launched Get Lost Adventure Centre to round out its Four Season adventure offerings, and the Legacy Training Centre to underscore RED’s reputation for breeding top notch kick-ass ski racers. This newest equity crowdfunding campaign is aimed at continuing this momentum, keeping this grand adventure real and sustainable for years to come.

All monies raised for this campaign will go toward improving the adventure here at RED such as: additional run development for expanded cat skiing on Mount Kirkup; building a new restaurant, clubhouse, and overnight on mountain cabins at the top of Grey Mountain; chairlift extension for multi-mountain access; spring and summer multi-use top to bottom trail expansion for hiking and mountain biking; and more. Investments will also support the creation of an annual local academic Scholarship fund for higher education.

“See, we aren’t just ‘keeping it real’ for us,” adds Katkov. “We’re keeping it real foreveryone. This is serious. That’s why we call ourselves a Keystone Species. We believe that keeping a place like this thriving betters the sport for everyone in a time where families that love this mountain lifestyle are getting priced out left and right. Skiing and snowboarding should never become elite sports. That’s just wrong.”

# # #

Crowdfunding Investor Commitments Surpass $5 Million for Title III Equity Crowdfunding Campaigns that Met Their Minimum Goals

18 Aug

Seeking Out Great Title III, Reg. CF Investment Opportunities? Check Below for Some of the Most Popular Crowdfunding Campaigns!

By Robert Hoskins

Austin, TX –  The new Title III rules – also known as “Regulation Crowdfunding” – enable even first-time investors to fund startups online with as little as a few hundred dollars of investments. Using Title III, Reg. CF crowdfunding, companies are able to raise up to $1 million.

Wefunder Dominating the Title III Reg CF Equity Crowdfunding Marketplace

Wefunder Dominating the Title III Reg CF Equity Crowdfunding Marketplace

The following are Title III crowdfunding companies with Investor Commitments that have surpassed their minimum goals as of the time of this store and broken down by crowdfunding portal:

WeFunder:

NextSeed:

SeedInvest:

  • MF Fire: A fire technology company leveraging advanced combustion science to engineer superior fire products

FlashFunders:

  • MobileSpike, Inc.: Allows law enforcement officers to stop pursuits from the safety of their vehicle

StartEngine:

  • Snapwire: Connects mobile photographers with businesses and brands that need creative imagery

Seedrs:

# # #

iDisclose Launches a Free “SEC Document Scrubber” for Filing Clean Reg. CF Equity Crowdfunding Documentation

18 Aug

iDisclose is an online application that helps entrepreneurs prepare their own legal crowdfunding documents significantly reducing the amount of money paid to attorneys and law firms

 By Robert Hoskins

New York, NY – iDisclose announced that it is now offering a free online service to help issuers and their counsel submit the required crowdfunding documents to the Securities and Exchange Commission.

“We noticed that a lot of people have been having trouble uploading the required documents to the SEC’s online system known as EDGAR,”stated iDisclose’s CEO Georgia Quinn. “This is due to the finicky nature of the system and somewhat archaic technology it uses. Several issuers’ uploads were getting bounced and the error messages were indecipherable.”

iDisclose Launches a Free "SEC Scrubber" Tool for Filing Reg. CF Crowdfunding Issuer Documentation

iDisclose Launches a Free “SEC Scrubber” Tool for Filing Reg. CF Issuer Discloser Documents

Many times, documents are bounced when people attempt to upload them to the SEC’s Electronic Data Gathering, Analysis, and Retrieval system or “EDGAR” system because the actual file does not meet certain technical specifications or contains certain “tags” that EDGAR rejects. iDisclose’s new SEC Scrubber “cleans,” so to speak, the documents of any tags or unacceptable formatting without altering any of the content, so they are able to be filed.

When asked why iDisclose is offering this service for free, Quinn stated, “We are doing this because we believe in the power of crowdfunding and we want to see this industry succeed. This has been a silly stumbling block for hard-working and well prepared issuers, and we want to remove it.”

A beta-version of the SEC Scrubber is being released to the public today and iDisclose is taking comments and feedback to improve the tool in its next release.

iDisclose is an online application that helps entrepreneurs prepare their own legal crowdfunding documents significantly reducing the amount of money paid to attorneys and law firms. iDisclose puts the job of disclosure back into the hands of the entrepreneur, eliminating the inefficiencies of the traditional method, substantially reducing time to comply with the rules and saving thousands of dollars.

Rather than provide un-contextualized information about a business to a lawyer, and then relying on the lawyer to prepare the first draft, the entrepreneur responds to an online dialogue to draw out the relevant disclosure issues and the platform organizes the information into a legal document. Throughout the entire process, the entrepreneur is able to collaborate with his or her own team and attorney as needed, and to send their attorney their document drafts for final review and sign-off.

iDisclose also generates a Red Flag report of key issues that must be addressed, which can also be shared with an attorney for further advice and counsel. In addition, the platform creates a list of Risks Factors that are seamlessly organized within the document for easy review by investors.

iDisclose helps:

  • Businesses: The platform allows you to create your own legal documents at a reduced time and cost.
  • Investors: iDisclose provides fulsome disclosure in an easy to evaluate format.
  • Fundraising Platforms: iDisclose allows platforms to offer a value-added service to their users and standardizes the disclosure format across the entire platform.
  • Lawyers: It eliminates much of the drafting drudgery required with the disclosure process, and allows lawyers to focus on the true aspects of being a lawyer (offering real legal counsel, guidance and reviews).

# # #

United Overseas Bank Partners with OurCrowd to Offer Equity Crowdfunding Support for Startups Participating in UOB’s Singapore FinLab Accelerator Program and other Cities throughout Asia

17 Aug

With a full Capital Market Services (CMS) license from the Monetary Authority of Singapore (MAS) OurCrowd is now able to market its equity crowdfunding platform in Singapore and other Asian cities

 By Robert Hoskins

Singapore/Jerusalem – United Overseas Bank (UOB) is deepening its commitment to helping startups grow into sustainable businesses by training its commercial bankers to provide clients with the most up-to-date information on alternative funding channels beyond traditional financing. More than 100 of its bankers have been trained so far.

United Overseas Bank Partners with @OurCrowd to Support Asian Startups and Small to Medium Enterprises Utilizing Equity Crowdfunding for Seed Investment Capital

United Overseas Bank Partners with @OurCrowd to Support Asian Startups and Small to Medium Enterprises Utilizing Equity Crowdfunding for Seed Investment Capital

The training is timely as the Bank’s strategic equity crowdfunding partner, OurCrowd, a leading global equity crowdfunding platform, was awarded a full Capital Market Services (CMS) license from the Monetary Authority of Singapore (MAS) at the end of July. With the license, OurCrowd is now able to market its equity crowdfunding platform in Singapore. In March this year, UOB announced it had made a US$10 million investment in OurCrowd, which invests in startups with differentiated and highly scalable technology products and services.

“We are proud of the rapid growth of our unique brand of equity crowdfunding and teaming up with UOB to advance the cutting edge of FinTech and the startup ecosystem in the region,” said Jon Medved, OurCrowd’s CEO. “As we work together, innovative Asian companies with differentiated and highly scalable technology products and services will be able to get access to another source of funding from a global investor network to jumpstart their international expansion and business development.”

UOB’s partnership with OurCrowd reinforced the Bank’s commitment in supporting Asian SMEs and startups with end-to-end financing needs. The range of support includes UOB’s accelerator program, The FinLab, to venture debt financing through to investment banking.

Ms. Janet Young, Head of Group Channels and Digitalization, UOB, said, “We understand the ambitions of startups and emerging enterprises and want to help them grow into sustainable businesses. In the last six months, we have trained more than 100 commercial bankers to identify and to understand the type of financing for which startups can qualify. Through our initiatives, we are well-equipped to support the startup ecosystem and help them realize their full potential.”

In addition, accredited investors among UOB’s clients will now have an opportunity to broaden their investments into OurCrowd’s portfolio companies and tap into a quality deal flow across the globe.

Mr. Denes Ban, OurCrowd Partner and Managing Director, Asia, said, “Our latest approval and licence in Singapore is further validation of OurCrowd’s global footprint and it’s exciting to see immediate and impactful results, thanks to our partners at UOB and the Sassoon Investment Corporation (SIC). Singapore-based investors will now have access to our portfolio of world-class startups and tap their growth potential.”

Launched in 2013, OurCrowd has raised more than US$250 million for investment in almost 100 companies, and has already had eight companies in their portfolio either acquired by a multinational or listed publicly. Unlike traditional equity crowdfunding platforms, OurCrowd invests its own capital alongside the crowd investors in each deal as testament to their confidence in the deal. By offering investors the same terms (valuation, liquidation reference and protection) as venture capital funds, it offers accredited investors access to unrivaled investment opportunities. OurCrowd also provides post-investment support to its portfolio companies, assigning industry experts as mentors.

# # #

Legion M Closes Over-Subscribed, Record-Setting $1 Million Equity Crowdfunding Campaign on Wefunder Portal

16 Aug

World’s first fan-owned entertainment studio leads the JOBS Act field with 3,000+ investors and significant demand above and beyond the $1 million cap allowed by the SEC’s JOBS Act Regulation CF

 By Robert Hoskins

Silicon Valley, CA – Legion M, the world’s first crowdfunded and now fan-owned entertainment company, announced they have raised one million dollars via their Title III crowdfunding offering on Wefunder. The Company raised the funds in less than three months from a record breaking 3,000+ investors, making it the most popular Reg CF company in the short history of Title III of the JOBS Act. At the time of closing, Legion M was also the number one company in terms of total investment interest and demand, with significantly more demand above and beyond the $1 million dollar funding cap allowed by the SEC, which leaves outstanding appetite for Legion M stock even after the round is closed.

Legion M Closes Oversubscribed, Record-Setting $1 Million Equity Crowdfunding Round on Wefunder

Legion M Closes Oversubscribed, Record-Setting $1 Million Equity Crowdfunding Round on Wefunder

“Legion M shareholders worldwide are celebrating this significant milestone we achieved together. We are truly inspired by their energy, passion and unbridled support. This Legion of dedicated fans have rallied behind us and our movement to make our mark entertainment industry,” said Paul Scanlan, CEO and co-founder of Legion M. “We are grateful to the JOBS Act for the innovative reforms that make this possible. Today we made history, and this is only the beginning.”

 Legion M’s creative partners currently include Stoopid Buddy Stoodios, the team behind Robot Chicken, 42 Entertainment, Meltdown Comics and Alamo Drafthouse.

 “I was impressed with how Legion M’s fans rallied to help them hit the one million dollar milestone eight days early,” said Nick Tommarello, CEO and co-founder of Wefunder. “We designed Wefunder for companies looking to build a stronger relationship with their most passionate customers, who are eager to help their favorite companies succeed. It was great to see how well it worked with Legion M’s well over three thousand investors.”

 “With more than three times the number of investors as any other Reg CF offering, Legion M has set the bar for Title III,” says Sara Hanks, a definitive authority on the JOBS Act and CEO of equity crowdfunding specialists CrowdCheck. “The real power of equity crowdfunding is having an investor base that can increase the value of your company, and Legion M is one of the best illustrations of that so far.”

“Having raised in excess of $100 million from VCs and angel investors for previous companies, we can attest that equity crowdfunding is a game changer,” said Jeff Annison, Legion M president and co-founder. “It’s not just a way to raise money–it’s a whole new paradigm for building a company.”

# # #

What Equity Crowdfunding Campaign Types Are Best for Startups and Small Companies – Title III or Title IV, Reg A+ ?

3 Aug

A Quick Guide to Launching Title III vs. Title IV Equity Crowdfunding Campaigns

By Robert Hoskins

VerifyInvestor.com's Guide to JOBS Act Crowdfunding Options and Rules

VerifyInvestor.com’s Guide to JOBS Act Crowdfunding Options and Rules

Trying to Determine What Equity Crowdfunding Option is the Best Method of Fundraising to Fund Entrepreneurs and Startup Companies?

Here are some simple questions that you might ask yourself when planning a fundraising campaign to raise money in order to launch a new startup or expand an existing business:

  • Maximum Offering for Equity Crowdfunding

How much money do you want to raise? And what step of the crowdfunding escalator does your company currently reside?

  1. Donation Crowdfunding – For ideas or concepts, entrepreneurs should consider Donation Crowdfunding and try to raise $10,000 or less with the goal of putting together a business plan, developing a website and begin working on prototypes or service beta programs.
  2. Rewards Crowdfunding – Once a prototype and/or beta test program has been developed and is ready to be tested for marketplace acceptance, startups should consider using Rewards/Perks Crowdfunding and set a goal of raising $25,000 to $100,000, but should have a crowdfunding PR and social media marketing campaign designed to raise up to $1 million or more based on marketplace demand. This crowdfunding step should be targeted to raise enough money to pay for the first manufacturing production run or minimum viable product (MVP) and provide a sufficient marketing budget to continue selling the produce/service and gaining marketplace traction once the crowdfunding campaign concludes.
  3. Equity Crowdfunding – Depending on the marketplace success, the final step is using equity crowdfunding to raise sufficient capital to launch a business on a regional, national or international level. Similar to an Initial Public Offering, the company can offer investors convertible notes, debt, revenue sharing or equity shares via a Title II (Rule 506 and Rule 144A offering), Title III offering or Title IV offering, which each has its own set of rules briefly outlined in the chart above.  Title III is capped at $1 million every 12 months, Title IV is capped at $50 million every 12 months and Title II can raise unlimited funding with no time limit.
  4. Crowdfunding Escalator – This entire process is called a crowdfunding escalator by many in the crowdfunding industry, which is a step-by-step process that allows a creative ideas to work their way into becoming successful and thriving businesses via larger and larger crowdfunding campaigns as a company grows, matures and gains marketplace traction.
  • Investor Types for Equity Crowdfunding

Do you want to target 8.7 million sophisticated accredited investors or open the offering up to 188 million non-accredited, novice investors throughout the U.S. (and Canada)? 

  1. Accredited Investors – Only about 3% of the accredited investors are active investors in the United States because until 2013 it was illegal to use general solicitation to reach this target audience and most deals were channel through registered broker dealers. The key is to know how to reach these angel investors and venture capitalists with advertising, email marketing, publicity and targeted social media marketing.
  2. Non-Accredited Investors – The other 97% of the population falls into the novice investor category that is literally an untapped target audience because it has been illegal to market fundraising campaigns to this segment of the population since 1934.  Title III and Title IV crowdfunding are designed to educate this new class of investors, teach them how to vet deals and allow them to make the same type of early stage investment usually reserved for venture capitalists by carefully researching the Form C disclosure documents for Title III and Form 1-A disclosure documents for Title IV, Reg. A+ offerings. And now that marketing offerings to this audience is legal, success is only limited by a company’s marketing budget.
  • Method of Offerings for Equity Crowdfunding

Do you want to utilize a registered Title III crowdfunding portal or regular website combined with general solicitation (advertising/PR/social media)? 

  1. Title III/Advertising Offering Terms is Prohibited – In contrast to Rule 506(c) offerings, which permits general solicitation if certain conditions are satisfied, an eligible issuer or persons acting on its behalf cannot advertise, directly or indirectly, the terms of a crowdfunding offering.  However, an issuer can publish notices (for example, in newspapers or on social media sites or the issuer’s website) that direct investors to the intermediary’s platform and contain only limited factual information about the offering and the issuer.   Despite this advertising prohibition, an issuer (or persons acting on its behalf) may communicate with investors about the offering terms through communication channels provided on the intermediary’s platform if the issuer identifies itself (or persons acting on its behalf identify their affiliation with the issuer) in all such communications.
  2. Title IV Utilizing General Solicitation – Title IV offerings are allowed to use any website/portal combined with advertising, email marketing, PR and social media to market the terms of their offerings in order to attract new investors, which means investors throughout the entire United States and Canada.
VerifyInvestor.com's Guide to JOBS Act Crowdfunding Options and Rules - Page 2

VerifyInvestor.com’s Guide to JOBS Act Crowdfunding Options and Rules – Page 2

 

# # #

Robert Hoskins, a seasoned Front Page PR veteran provides more than twenty-five years of external communications, media relations, digital social media and SEO skills to Front Page PR’s crowdfunding PR and media relations service portfolio.
(512) 627-6622
@Crowdfunding_PR


Mr. Robert Hoskins is a seasoned marketing veteran with a proven track record of helping entrepreneurs, startups, small businesses as well as Fortune 500 corporations launch successful marketing communications campaigns to gain market traction for a wide variety of products and services.
Mr. Hoskins consults on a regular basis with crowdfunding campaign managers as well as crowdfunding sites, portals and platforms to deliver successful crowdfunding marketing campaigns.
Mr. Hoskins is one of the crowdfunding industry’s foremost crowdfunding advocates and has amassed a huge social media following that is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns. Due to the overwhelming demand from the general public for crowdfunding information, he empowers entrepreneurs with some of the internet’s most affordable ($20) online crowdfunding training classes, which provide insight to startups around the world on a 24 x 7 basis.

Follow

Get every new post delivered to your Inbox.

Join 82,299 other followers

%d bloggers like this: