Archive | September, 2016

Is Title IV Reg A+ Equity Crowdfunding the Right Fundraising Tool for Your Growing Business?

21 Sep

A Checklist of Goals for Businesses Considering Raising Money with a Title IV Reg A+ Crowdfunding Campaign

By Robert Hoskins

Is Title IV, Reg. A+ Equity Crowdfunding the Right Fundraising Tool for Your Growing Business?

Is Title IV Reg A+ Equity Crowdfunding the Right Fundraising Tool?

Austin, Texas – Trying to figure out if Title IV Reg A+ Equity Crowdfunding is the right fundraising tool to help your company move to the next level? Most people consider Reg A+ to be one step below issuing an IPO (Initial Public Offering) at a fraction of what it usually costs, thus it is also known as a Mini-IPO.

Most financial analysts consider existing businesses with several years of operations and generating significant revenue from multiple product/service lines to be the best candidates to launch a Reg A+ crowdfunding campaign. Smaller investment bookrunners will argue that even startups and small businesses are good targets to raise money using Reg A+, especially if they have goal of going public in 18-to-24 months based on certain revenue milestones.

Top Title IV Reg A+ Crowdfunding Questions:

  1. Do you have a strong management team?
  2. Do your founders or investors have any “Star Power?”
  3. Do you need to raise more than $1 million?
  4. Have you developed an effective 30-second elevator pitch?
  5. Have you developed a 3-minute crowdfunding pitch video with a strong call-to-action?
  6. Have you developed a “Pitch Book” for investors?
  7. Do you have a lead investor of $25k+ or more?
  8. Have you raised at least $100,000+ or more from prior investments?
  9. Is your business growing at 20% or more month over month?
  10. Have you generated at least $100,000+ of lifetime revenue?
  11. Is your business projecting  2x to 3x year-on-year profit growth?
  12. Can you provide investors with a 3x to 10x ROI over the next 3 to 5 years?
  13. Is your market valuation worth $5 million or more?
  14. Is your market capitalization realistic from a VC’s point of view?
  15. Have you run a successful rewards/perks-based crowdfunding campaign?
  16. Do you have a database of at least 5,000+ customer email accounts?
  17. Do you have a database of at least 1,000+ investor email accounts?
  18. Have you generated at least 3 or more press articles in the trade press?
  19. Do you have a $20,000 or more for a advertising/crowdfunding PR budget?
  20. Do you have a strong LinkedIn resume and a large social media following on Facebook and Twitter?

If you cannot answer “yes” to the majority of these questions, then your business may not be ready to launch a Reg A+ equity crowdfunding campaign. These are many of the milestones that private equity investors and venture capitalists like see in a pitch deck to make your company worth serious consideration for a seed stage or private equity investment. If not, use this list to set some goals and objectives for your business and work hard to achieve them.

Title IV Reg A+ vs. IPO

If you think you are serious about issuing a Reg A+ offering, it would be wise to read through the following white papers on Title IV Reg A+ vs. IPOs. Learning how a bookrunner works with various investment banks, institutional investors, venture capital and private equity firms can provide valuable insight into how Wall Street has been raising money for startups for the past 100 years.

The white papers will also provide key insights into how much money it will cost as well as the actual fundraising process including what it takes to put together a “Pitch Book” and how to market it via “Dog and Pony” investment road shows. The key to raising for a company’s management team to travel from city to city meeting with potential investors to pitch Reg A+ investment opportunities.

Title IV Reg A+ Background

The SEC has previously stated that the primary purpose in adopting Reg A+ was to provide a simple and relatively inexpensive procedure for small business use in raising limited amounts of needed capital. Reg A+ issuers submit a paper-based offering statement to the SEC; this offering statement is essentially an abbreviated version of an IPO prospectus and it must be “qualified,” or cleared, by the SEC and delivered to prospective purchasers.

In addition to SEC review, Reg A+ offerings have traditionally been subject to review under state securities laws (also known as “Blue Sky” laws). In comparison, a traditional registered IPO listed on a national exchange is exempt from Blue Sky requirements. Securities sold in a Reg A+ offering are freely transferable in the secondary market, though Reg A+ issuers are not subject to Exchange Act reporting requirements.

Title IV Reg A+ as Outlined by 2012 JOBS Act

Title IV of the 2012 JOBS Act directed the SEC to expand Reg A to exempt offerings of up to $50 million in equity, debt or convertible securities. The law mandated that issuers relying on this new exemption would be required to file audited financial statements with the SEC on an annual basis.

However, without infrastructure currently in place for A+ securities to trade on national exchanges, lawmakers left it within the purview of the SEC to settle the state jurisdiction question by establishing the definition for “qualified purchaser” in the rulemaking process.

The 2nd Tier of Title IV Reg A+ Offerings

The SEC’s final rule was adopted on March 25, 2015, and became effective during the summer of 2015. In the rule, the SEC expanded Regulation A into two tiers: Tier 1 for offerings of up to $20 million and Tier 2 for offerings up to $50 million.

By removing key procedural obstacles and introducing common-sense investor protections, this new Reg A+ framework creates a viable capital-raising alternative for issuers that want to remain independent and innovative. Below are some of the key provisions included in the SEC’s Reg A+ rule:

  • Testing the waters: Issuers may solicit interest in a potential offering with the general public, either before or after the filing of the offering statement.
  • Blue Sky: Offerings made under Tier 2 are generally exempt from state securities law registration and qualification requirements. And while Tier 1 offerings would still be subject to state Blue Sky regulations, the states’ new Coordinated Review process has dramatically reduced the burdens associated with this process.
  • Offering Circular: Issuers can confidentially file statements for SEC qualification. Offering circular must include audited financial statements and balance sheets for the two most recently completed fiscal year ends. The Offering Circular format is narrative disclosure, similar to what is required from smaller reporting companies in a prospectus, but more limited in certain respects.
  • Proceeds: For Tier 2 offerings, there is an annual offering limit of up to $50 million in equity, debt or convertible securities, including no more than $15 million from selling security holders. For Tier 1 offerings, the annual limit is $20 million, with not more than $6 million from selling security holders preceded or accompanied by a preliminary offering circular.
  • Transferability/Liquidity for Investors: Securities sold in these offerings are not “restricted securities” under the Securities Act, and thus are freely tradable in the secondary market.
  • Ongoing Reporting: Issuers that conduct a Tier 2 offering must electronically file annual and semiannual reports with the SEC, but those who conduct Tier 1 offerings generally have no ongoing reporting obligations.

Are Title IV Reg A+ Shares More Liquid?

Securities offered under Reg A+ are freely tradable, which makes them more valuable to employees, investors and founders.  This is beneficial for investors but also for issuer constituents, who may be early investors or insiders, seeking liquidity.  The issuers’ choice of venue is mostly to do with the size of the offering and the company’s market capitalization.

Need Help Preparing a Title IV Reg A+ Offering?

What Crowdfunding Goals Do You Need Help With?(required)

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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.
Robert Hoskins
(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.
On a regular basis, 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.
Google search “Robert Hoskins Crowdfunding” to see why Mr. Hoskins is considered one of the industry’s foremost crowdfunding experts that has amassed a huge social media following, which is dedicated to supporting donation-, rewards- and equity-based crowdfunding campaigns.
In addition, due to the overwhelming demand from the general public for information on crowdfunding, he empowers entrepreneurs, startups and existing businesses with the internet’s most affordable crowdfunding training classes, which provide insight to startups around the world on a 24 x 7 basis.

China, India and the US to Dominate the Global Digital Fintech Platform Economy; Much of Europe Lags Behind

19 Sep

Majority of Businesses and Economies Are Not Ready for Digital Platforms, Accenture Research Shows

By Robert Hoskins

New York, New York – Research released by Accenture (NYSE:ACN) reveals that despite the potential for small and traditional businesses to become successful digital fintech platform companies, as few as 10 percent of new start-ups focused on digital platform business models will become profitable independent entities in the coming years. The analysis also reveals that China, India and the U.S. will dominate the platform economy by 2020, and that the gulf between countries will increase. To help bridge this gap, the report outlines five critical steps businesses and governments can take to succeed.

Five Factors for a Successful Digital Fintech Platform Ecosystem

Five Factors for a Successful Digital Fintech Platform Ecosystem

Accenture’s report Five Ways to Win with Digital Platforms, published in collaboration with the G20 Young Entrepreneurs’ Alliance, assesses the ability of 16 G20 economies to support the flourishing of digital platforms. It shows that the UK and Germany join China, India and the U.S. at the top of the Accenture Platform Readiness Index, but other emerging markets and European economies are predicted to lag behind, lacking sufficient business and socio-economic enabling conditions.

“When you think of digital platforms, think of China and India as much as the U.S. These economies are using the power of platforms to create large scale markets very rapidly,” said Paul Daugherty, Accenture’s Chief Technology Officer. “Many European economies are in danger of missing out in the platform economy. Multi-stakeholder cooperation is required to address the fragmented digital markets and to support the greater levels of digital enterprise and consumption that successful platform businesses need.”

Accenture’s analysis shows $20bn was invested in digital platforms between 2010 and 2015 in 1,053 publicly announced deals. More than half of this investment took place between 2014 and 2015. It also shows that rankings on the Platform Readiness Index strongly correlate to the levels of digital platform activity and investment in G20 countries.

The report recommends that governments engage with businesses leaders to advance a range of policies that can create a rich enabling environment for digital platforms including the following actions:

1.

Prioritize data protection standards and rules: Drive the harmonization of data privacy and data security legislation. Smooth cross-border data transfers.

2.

Design regulations with digital platforms in mind: Experiment with regulations alongside new technologies and business models. For instance, the U.K.’s Financial Conduct Authority’s “regulatory sandbox” allows start-ups to test ideas without immediately incurring all the normal regulatory consequences.

3.

Encourage cross-border electronic trade. Harmonize taxes and standards, consumer protection, contract laws and logistics infrastructure. The eWorld Trade Platform (eWTP), initiated by B20 China, aims to accelerate international policy collaboration to support SMEs.1

4.

Invest in digital infrastructure: For example, the E.U.’s Payment Services Directive (PSD2) will empower start-ups to expand customer reach and encourage innovative business models.

5.

Think small, act big: Educate SMEs on alternative funding, such as crowdfunding and peer-to-peer lending; and on data privacy and consumer protection. Support SMEs with digital economic zones to support e-commerce.

Five ways to succeed

Accenture notes that only 15 percent of Fortune 100 companies have developed digital platform business models to date Successful digital platforms will proliferate as small businesses and traditional industries follow the lead set by digital-born platform companies. Accenture identifies five factors critical to sustaining critical mass in digital platforms, which use new technologies to create large scale markets of customers and service providers:

1.

Proposition: Create differentiated platform services that extend beyond the point of transaction; and that support both customers on the demand side and service providers on the supply side.

2.

Personalization: Target customers through tailored experiences across all channels, using customer data to anticipate needs and offer bespoke experiences.

3.

Price: Apply new pricing models, such as pay-as-you-go, ‘freemiums’, and subscription pricing to respond to peak demand.

4.

Protection: Embed trust at the heart of the platform, using both prevention and compensation techniques to attract customers and differentiate the platform.

5.

Partners: Scale the platform rapidly by identifying digital partners – such as app developers and payment service providers – who can enrich the platform experience and fulfill customer needs.

“Digital platforms are not just the preserve of digital born companies, like Airbnb and Alibaba, but are now becoming a default business model in most industry sectors, both B2B and B2C,” said Francis Hintermann, managing director, Accenture Research. “To enjoy efficiencies and high rates of growth, companies will need to transform everything from the way they co-create goods and services with third parties, tailor their offerings to customers, and price them dynamically. Crucially, they will only sustain critical mass by working with digital partners who can deliver the range of functional services that complete the customer experience.”

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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.

Digitzs Shatters Glass Ceiling and Hits #1 Spot On CNBC’s Top 50 Crowdfinance Index

15 Sep

Digitzs Crowdfunding Round Closes Soon On Crowdfunder; Female Founded Fintech Company Disrupts Payments and Equity Crowdfunding

By Robert Hoskins

Santa Monica, California – Digitzs reached the coveted number one spot on the CNBC Crowdfinance 50 Index with over $7 Million in commitments for the niche payment processing startup. Digitzs is the first female founded company to reach the number one position since the index launched on CNBC in early 2015 and holds the number one position for the largest capital raise by a female founded company since Title II of the JOBS Act came into effect in the fall of 2013.

The CNBC Index tracks real time capital commitments received by the top 50 private U.S. companies via securities-based crowdfunding sites. Digitzs is currently fundraising on leading equity crowdfunding site Crowdfunder, and has raised more money than any female founder in Crowdfunder’s history.

According to Bloomberg, women-led technology companies are more capital-efficient, achieving 35 percent higher return on investment. “Digitzs CEO and Founder, Laura Wagner, is an innovative leader with grit, hustle and intellect,” noted Crowdfunder President, Steven McClurg. “She is driven to deliver near-term value for her investors, customers and co-founders.”

Wagner, a successful entrepreneur with 20-years in the payments space, has compiled a founding team of leaders in the space, including PayPal’s first CFO, David Jaques; former Head of Worldwide Payments for Apple, Edward Katzin and Visa’s Linda Perry (named Most Influential Women in Payments three years in a row); Ben Way, a world-renowned startup technologist, and Stacey Moore, an award winning technologist, strategist and entrepreneur.

“As the former head of Acquiring at Visa for 17 years, I am familiar with virtually every payment processor in the U.S., from small to large and everything in between. Digitzs has the most disruptive platform and business model I’ve seen to date,” notes Co-Founder Linda Perry.

“Virtually 100% of Digitzs’ startup funding thus far has come from team members, family, friends and the crowd,” noted Digitzs CEO & Founder, Laura Wagner. “As we bring this round to a successful close, we look forward to delivering unprecedented value back to our customers, investors and team.”

Digitzs makes payments painless for white label platforms that process ticket payments for events, donation payments for nonprofits and rent payments for property managers. Though viewed as the “Invisible Internet” by most consumers and end users, Accenture says niche cloud-based business management software platforms are a top-five 2016 trend. Digitzs’ team comes from PayPal, Visa and Apple and the company has amassed $1 billion in potential processing interest from potential platform customers.

Crowdfunder is one of the leading equity crowdfunding platforms for sourcing and funding early stage ventures with a network of over 130,000 entrepreneurs and investors. Crowdfunder provides the opportunity for direct online investment into single ventures. Companies listing on Crowdfunder are typically early-stage startups, many of which are backed by leading Venture Capital firms and private investors.

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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.

EZTalks “Onion” Launches Crowdfunding Campaign; Cool New All-in-One Video Conferencing Solution Offers Early Birds a 45% Discount 

12 Sep

EZTalk Onion, the all-in-one video conferencing equipment supports HD video conferencing, live broadcasting, screen sharing, screen projection, white board annotation and online meeting control features

By Robert Hoskins

Hong Kong  – EZTalks Onion is raising funds via a reward-based crowdfunding campaign on Indiegogo to finish the mass production of its revolutionary all-in-one video communication device – EZTalks Onion, an all-in-one creative video conferencing equipment that is going to change current video conferencing device price structure set by traditional service providers such as Cisco, Polycom, Lifesize and Zoom, which are three times more expensive than EZTalks.

The first 50 supporters can purchase EZTalks’ Onion for only $499.  Hurry. Buy one now  before they are all gone!

EZTalk Onion, the all-in-one video conferencing equipment supports HD video conferencing, live broadcasting, screen sharing, screen projection, white board annotation along with abundant online meeting control features like live chat, recording, mute audio, make presenter, lock meeting room, remote control and more

EZTalk Onion, the all-in-one video conferencing equipment supports HD video conferencing, live broadcasting, screen sharing, screen projection, white board annotation along with meeting control features like live chat, recording, mute audio, make presenter, lock meeting room and remote control

Professional video conferencing and telepresence technology should benefit all ordinary people’s work and should be as easy and affordable as personal digital products instead of a huge investment of complicated devices and IT support for meeting rooms. EZTalks Onion, with its high-end design and smart features, is created to lower the threshold of setting up professional video conferencing room to an unprecedented cost-effective level.

The all-in-one device can be connected to any TV or display via HDMI easily for video conferencing, online meetings, online trainings and live broadcasting. It supports screen sharing, white board annotation along with abundant online meeting control features like live chat, recording, mute audio, make presenter, lock meeting room, remote control and more. Users can manage this via any device, seamlessly transfer calls from any device to a TV or display and switch back.

“We aim to bring crystal-clear audio and video experience with one single high-end device to both teams and individuals working remotely without onsite technical support,” said EZTalks’ Global Marketing Director Jack Zhang. “With nearly two years of hard work, the device is now designed with 1080p 12.0 megapixel camera with 120° wide angle lens, dual stereo microphones with 5m mic pickup radius and full frequency HD speaker. Equipped with quad-core processor, it runs fast and smartly with its aluminum alloy unibody casing.”

EZTalks Technology Company Ltd. is an experienced, professional video conference service solution provider and has already successfully launched two video conference solution: EZTalks Cloud and EZTalks VCS to meet big and small business’ remote collaboration requirements across all industries.

# # #

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.

RealtyShares Partners with Blue Mountain Property Management in $3 Million Equity Crowdfunding Real Estate Investment Deal in Utah

7 Sep

Blue Mountain will begin purchasing more than 200 underperforming homes for rehabilitation/sales in Salt Lake City area

By Robert Hoskins

San Francisco, California – RealtyShares, a leading online marketplace for real estate crowdfunding, has raised $3 million from its investor network for a Salt Lake City residential property development fund with Blue Mountain.

RealtyShares Partners with Blue Mountain Property Management in $3 Million Equity Crowdfunding Real Estate Investment Deal in Utah

RealtyShares Partners with Blue Mountain Property Management in $3 Million Equity Crowdfunding Real Estate Investment Deal in Utah

A Utah-based real estate firm focused on the acquisition, rehabilitation and sales of homes in the Greater Salt Lake City area, Blue Mountain will begin purchasing more than 200 underperforming homes through the fund. As a vertically integrated firm, they are equipped to manage all aspects of the purchase, rehabilitation, stabilization and sale of high potential properties. This is the fourth single-family home fund of this kind that Blue Mountain has raised through the RealtyShares platform.

“Crowdfunding has been a great time management tool for us,” said Kenneth Thomson, President of Blue Mountain. “While the money is coming from multiple investors, we only have to deal with RealtyShares. It saves us time so we can do what we do best – finding great homes to renovate. And because it is sometimes quicker to acquire capital through crowdfunding, we’re able to potentially negotiate better prices on properties.”

For more than ten years, Blue Mountain has been targeting properties below market value and rehabilitating them for rental or resale. The firm expects to acquire up to ten properties a month with the raised equity capital. Proceeds from the sale of renovated homes will be reinvested in the fund for additional properties through the 30-month term.

“This fund can enable investors from across the country to tap into Utah’s real estate market,” said Mark Masterson, Director of Investments at RealtyShares. “With low unemployment, a strong jobs market, and low inventory, the Greater Salt Lake City housing market has been attractive from the standpoint of an investor. Blue Mountain has been able to use their extensive infrastructure and sourcing capabilities to provide updated housing options that can be attractive to retail homebuyers and renters alike.”

The return ultimately realized by investors will depend upon the distributions from the projects and the value of the properties whenever they are sold. To date, RealtyShares’ network of accredited investors have funded more than $150 million worth of investments for over 2,000 properties.

RealtyShares 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.

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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.

Arrow Electronics Brings Technology and Design Hardware to Life with Up to $1 Million for Indiegogo Crowdfunding Campaigns 

1 Sep

Arrow Electronics and Indiegogo launches groundbreaking crowdfund-to-production service aimed at accelerating the pace of innovation for technology entrepreneurs

San Francisco, California – Arrow Electronics, Inc. (NYSE:ARW) and Indiegogo launched their groundbreaking crowdfund-to-production service, which is aimed at accelerating the pace of innovation for technology and internet of things (IoT) entrepreneurs.

Entrepreneurs can apply for Arrow certification on the Indiegogo platform. Arrow Electronics’ engineers will then analyze the design and manufacturability of each application. Projects deemed “ready for manufacturing” will be denoted with official “Arrow Certified” badges on their Indiegogo campaign site to let potential backers know the project is ready for production."Arrow

Every “Arrow Certified” campaign on Indiegogo that meets certain eligibility criteria can compete to receive a share of $1 million in flash-funding that Arrow will give away to 20-50 campaigns during the next 12 to 15 months. Click here for full funding details and rules.

Arrow Certified” campaigns on Indiegogo will also lock-in up to $50,000 in benefits that help entrepreneurs succeed in prototyping and manufacturing their innovative products, which include some or all of the following:

  • Direct, online access to the prototyping tools available through Arrow.com and Silicon Expert, one of the world’s largest and most comprehensive database for technology component design
  • Comprehensive technical reviews of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the quantities of each needed to manufacture a product
  • Professional design-for-manufacturing product reviews and certification
  • Up to $1,000 in materials for prototype development
  • Free access to the Arrow Testdrive program to try out the latest innovations from leading semiconductor manufacturers with no up-front investment
  • Customized marketing and promotional support on Arrow.com and through Arrow’s extensive technology-focused media network
  • 10 percent off and free shipping on millions of products available through Arrow.com that will help accelerate prototyping and bringing innovations to market

In addition, a handful of “Arrow Certified” campaigns that Arrow experts deem truly technologically exceptional will qualify as “Arrow Innovator” campaigns and receive additional support, which includes some or all of the following:

  • Supply chain services and contract manufacturing support worth up to $500,000
  • Up to $10,000 in materials for prototype development
  • A dedicated local Arrow technical concierge available for on-call or on-site support
  • Perk protection that guarantees campaign backers will get their money back if for some reason the product is never manufactured—providing current and future campaign backers with increased confidence
  • A fast-tracked review with Arrow’s in-house financing team to help fund the cost of getting production up and running

Arrow and Indiegogo formalized an alliance in May after Indiegogo entrepreneurs had been increasingly turning to Arrow to help transition innovative ideas into successful commercial products. Arrow is now a key component of Indiegogo’s efforts to support the entire product lifecycle for entrepreneurs on the platform.

Current and new Indiegogo technology or design campaign entrepreneurs interested in applying to become “Arrow Certified” should visit www.arrow.com/indiegogo.

“This groundbreaking crowdfund-to-production program will help so many tech entrepreneurs and startups accelerate their path to market and revenue. Halo Smart Labs didn’t have access to a formal production program like this when we were successfully crowdfunded on Indiegogo. However, we did have the good fortune of getting introduced to Arrow experts early on who helped us refine designs, source the right components, tackle first runs and scale to full production,” said Ben Stagg, Halo Smart Labs’ CEO. “Without the crowdfunding support we received on Indiegogo and without the go-to-market support we received from Arrow, we wouldn’t be preparing for the first Halo and Halo+ smart fire alarms to hit the shelves of major retailers this fall.”

“Arrow is leading IoT design and production for many of the world’s largest companies. We are broadening these capabilities to support the rising wave of innovation coming from crowdfunding,” added Arrow’s Chief Digital Officer, Matt Anderson. “The comprehensive design, manufacturing and go-to-market support that Arrow will provide Indiegogo campaigns will help IoT and technology innovators succeed in even greater numbers, making Indiegogo the only game in town when it comes to launching an IoT or technology idea.”

Indiegogo CEO’s David Mandlebrot commented, “This collaboration improves the experience for both entrepreneurs and backers on Indiegogo. Supporting the entire lifecycle for technology entrepreneurs—from idea, to funding, to manufacturing and ultimately retail selling—is a priority for Indiegogo and this collaboration with Arrow allows us to build on those efforts in an incredibly impactful way. At the same time, this alliance will enable backers to have greater confidence that they will ultimately receive their perks.”

Arrow Electronics is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. Arrow serves as a supply channel partner for more than 100,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 460 locations serving over 85 countries.

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