Leading Crowdfunding Industry Analyst Firm, Crowdfund Capital Advisors, States Now is the Time to Update the Regulation to Further Enable Capital Formation
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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR
Van Nuys, California – JetPack Aviation announced the sale and delivery of the world’s first commercial jetpack. The company, which designs and manufactures small, turbine powered VTOL jetpacks for military, industrial, and individual customers, is now offering its JB10 duel engine model at the retail price of $250,000. Currently under contract with the US military, JPA is also receiving international government inquiries.
David Mayman, JetPack’s CEO said, “We believe this sale is the definitive first step on the road to widely accessible Personal Flight Mobility. Whether we are enabling the extraction of Special Forces soldiers, moving emergency medics from hospital to disaster site, or commuters from home to office – JPA is focused on a wide range of vertical takeoff and landing (VTOL) transportation solutions. Our JB10 is designed to be a proof-of-concept and we are already working on several other long endurance aircraft including fully electric systems.”
JetPack Aviation made its first public demonstration flight around the Statue of Liberty in 2015 with full FAA (Federal Aviation Administration) authorization. Subsequent public flights were held in London, Monaco, and Los Angeles. JPA is now offering sponsored promotional flights for corporations and events.
Principal Designer, Nelson Tyler, said, “People have dreamed of individual flight for as long as we have looked to the sky. Now, after decades of work and thanks to our extraordinarily talented staff, the dream of personal flight is a solid reality. And it’s available for sale today.”
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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR
Washington, DC – The SEC just released a white paper entitled, U.S. securities-based crowdfunding under Title III of the JOBS Act, which analyzes crowdfunded offerings during the first six months following May 16, 2016 when Title III, Regulation Crowdfunding become official. The SEC’s white paper, which was prepared for Scott Bauguess, the Acting Chief Economist and Acting Director of the Division of Economic and Risk Analysis (DERA), noted that the majority equity crowdfunding offerings to date have not utilized Regulation D as much as predicted.
The white paper does go into great detail about five largest Title III crowdfunding portals based on the number of offerings, which accounted for 71% of the offerings launched during 2016. The five largest Title III crowdfunding sites also accounted for 64% of the total amount of funds raised. And while more 20 crowdfunding sites were listed, most of the offering activity was limited to 25% of active platforms in the Title III crowdfunding marketplace. And, if you ran the numbers for completed offerings, you would see that the top five largest intermediaries accounted for more than 90% of the market share.
The table below low shows the list of the Top Performing Title III Crowdfunding Portals sorted on the number of initiated offerings and then by the target amounts of the initiated offerings, excluding offerings withdrawn as of December 31, 2016.
Many people want to know what the types of Title III crowdfunding campaigns were the most successful. Preferred Equity led the pack at 36%, followed bySimple Agreements for Future Equity at 26%, Debt at 20%, Units at 7%, Convertible Notes at 6% and Miscellaneous accounted for the remaining 5%, which included Revenue Sharing and Membership / LLC Interests.
Another interesting way to look at growing crowdfunding industry is to examine what states launched the most successful Title III Equity Crowdfunding Campaigns. In the table below you can see that California/Silicon Valley launched the most Title III crowdfunding campaigns, followed closely by Texas/Silicon Hills at 19%, New York at 14%, Massachusetts and Illinois tying at 9%, Delaware, Florida, New Jersey, Oregon, and Pennsylvania bringing up the back to the pack, all with 5%.
Because many industry experts have stated their concerns that the SEC’s decision to severely restrict the general solicitation guidelines with regards to advertising their crowdfunding deals to the masses of non-accredited investors, the white paper also took a close look at how many Title III Regulation Crowdfunding Campaigns had previously or subsequently conducted an offering under Regulation D or Regulation A.
As shown in the table below, as of January 15, 2017, approximately 15% of offerings initiated during 2016 (excluding withdrawn offerings) were by issuers that have also reported offerings under Regulation D either before or after the initial crowdfunding filing. And, approximately 3% of issuers have issued Regulation A+ filings as of January 15, 2017.
Among crowdfunding issuers, approximately 12.9% of offerings were by issuers that had filed the first Form D notice prior to the first crowdfunding filing and approximately 2.5% of offerings involved issuers that had filed a Form D notice after the first crowdfunding filing. For about 8.6% of offerings, excluding withdrawn crowdfunding offerings, a Form D filing was made within one calendar year before or after the initial crowdfunding filing. Consistent with their young age, the SEC determined that the majority of the crowdfunding issuers were more likely to be new startups rather than “fallen angels.”
Overall, these results suggest that crowdfunding is attracting issuers that have not extensively used other private offering exemptions, such as Regulation D, which is otherwise a very popular private offering exemption among similarly sized issuers as those initially availing themselves of the Crowdfunding market. The initial evidence is points to the fact that Title III, Regulation Crowdfunding is indeed providing a new source of capital for entrepreneurial and small businesses that may not otherwise have had access to capital through alternative capital raising channels.
The white paper also made a point of covering the following facts and figures.:
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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR
Rossland, BC – On August 22, 2016, RED Mountain Resort launched a $10 million crowdfunding campaign on StartEngine.com called “Fight the Man. Own The Mountain.” This was the first time a for-profit ski resort explored equity crowdfunding and nobody at RED knew what to expect in Phase I, of the “Test The Waters” campaign. As of last Thursday morning (Feb. 9), RED hit their $10MM Reservation Goal — an historic achievement within the North American ski industry.
“We went into this campaign feeling that these were uncharted waters,” says RED CEO Howard Katkov. “But the response was immediate, passionate, and unequivocal. Our choice to plant the flag for independent skiing and snowboarding during a time of high-profile mergers and acquisitions really resonated.”
Since launch, “Fight the Man. Own The Mountain.” has been featured many times in the mainstream press across North America, and has been covered extensively by ski and snowboard outlets. The videos created for the campaign have so far received over half a million views.
Equity crowdfunding is a new style of investment and RED’s choice to accept a relatively low minimum reservation of $1,000 allowed “everyone from Lifties to Learjet owners” to make a reservation for this unique equity financing campaign. (And they did!) RED’s campaign on StartEngine will continue to take reservations as they prepare their auditing and legal documents to be provided to investors for Phase II, which is scheduled to launch in the Fall of 2017.
“Our goal was to hit $10 million in reservations by April, but we managed to hit that number months in advance. We now sincerely hope that a large percentage of the RED fans that pledged their support will convert their reservations to a real investment when the Phase II launches this fall,” says Katkov.
There are two exciting aspects of “Fight the Man. Own The Mountain.” in investment terms. The first is the “Last In, First Out” feature. What this means is that investors in Phase II — whether they’re in for $1,000, $25,000 or more — would receive their investment back before all previous equity investors. The second is the “rewards” associated with each level of investment, from lift tickets, custom skis or snowboards, season and family passes and access to a purpose-built clubhouse and overnight cabins. These rewards are laid out in the StartEngine platform.
RED Mountain is the oldest ski resort in Western Canada and has been the site of many firsts: First World Cup ski race in Canada; one of the largest terrain expansions in North America in over 40 years… This campaign marks another first — the opportunity through equity crowdfunding to own a slice of world-class ski resort for as little as $1,000.
“The groundswell of support from the snow community, the press, and investors has been nothing short of astonishing,” says Katkov. “The success of the campaign, thus far, has been a nice reminder of just how passionate and free-spirited the ski and snowboard community really is. It’s been an incredible winter so far and I’ve had a number of guests come up to me and say they booked their ski week at RED after hearing about us through the campaign. Some of them invested, some of them didn’t, but all of them sensed that we have something special going on in Rossland and needed to check it out in person. And to us, that means more than anything. We can’t wait for what the future holds.”
RED is the last great, unspoiled resort. Located in Rossland, BC, 1st stop on Canada’s famous Powder Highway, RED delivers 2,877 acres of pristine, unfettered skiing. RED recently added nearly 1,000 acres of intermediate to advanced terrain on Grey Mountain.
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Robert Hoskins
(512) 627-6622
@Crowdfunding_PR
Austin, Texas – Want to learn how to launch a successful Title IV, Reg. A+ equity crowdfunding campaign? To help crowdfunders achieve this elusive goal, Crowdfunding PR announced a special two-month Crowdfunding Prep Work Program that will significantly improve a crowdfunding campaign’s success rate by amplifying its management team’s social media profiles and by utilizing an effective crowdfunding PR campaign to generate hundreds of stories via electronic news media outlets prior to the crowdfunding campaign’s launch.
How to Plan a Successful Crowdfunding PR Campaign by Following this Secret Step-by-Step Process
Social Media Campaigns
Conducting a strong social media marketing campaign is one of the biggest challenges that many Title IV, Reg. A+ Crowdfunding Campaigns will face. Improving weak social media credentials for companies is critical to crowdfunding success. What many entrepreneurs and startups need to recognize is how important social media is in the world of crowdfunding.
“The very first thing that an investor/donor does when they read through a crowdfunding profile they like is to look up the company and its team members on Facebook, LinkedIn and Twitter to check out their credentials,” said Robert Hoskins, Crowdfunding PR’s Director of Crowdfunding Campaigns. “Having a strong resume on LinkedIn, lots of likes on Facebook and an army of followers on Twitter is crucial to determining the strength of the team and the likelihood that they have the tenacity and marketing skill set to deliver on their crowdfunding campaign’s promises.”
Public Relations/Publicity Campaigns
The second biggest task is generating stories on electronic news media outlets and blogs prior to launching a crowdfunding campaign. Not only can a well-orchestrated crowdfunding PR campaign generate hundreds of free, positive trade press articles to support the fundraising effort, but the same targeted, search-engine-optimized (SEO) press releases will continue to drive new investors, potential customers as well as sales/distribution partners to the business long after the crowdfunding campaign ends.
“Most investors/donors will do a Google search to see what they can find online for both the company and its team members,” Hoskins continued. “With a two-month crowdfunding prep work campaign there will be several pages of search engine results that link to the client’s website pages, their social media posts/profiles and the crowdfunding campaign’s temporary landing page until they launch an equity crowdfunding campaign on SeedInvest.com, StartEngine.com, Republic.co, WeFunder.com or any other Title IV, Reg. A+ equity crowdfunding sites.
Contact Crowdfunding PR
If you would like to speak with a crowdfunding PR, social media and/or marketing expert regarding your crowdfunding campaign, please call Robert Hoskins at (512) 627-6622.
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(512) 627-6622
@Crowdfunding_PR
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’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.”
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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.
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:
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Austin, Texas – Here is a update of the first round of Title III, Regulation Crowdfunding campaigns that launched on May 16th, almost a month ago. In aggregate, the crowdfunding campaigns have raised $711,196. And that figure would be much higher if we included the all 40 of the equity crowdfunding campaigns that have been approved by the SEC for issuing Title III offerings.
To give crowdfunders an idea of which platform is raising the most money, we added up the totals for each platform and so far, WeFunder is ruling the roost with 61% of all money raised:
Total: $711,196
Why are some companies raising a lot of money and others are struggling? It comes down to how much money these crowdfunding campaigns are spending on marketing. Its hard to raise money unless campaigns are spending money on advertising, email, PR, social media and website marketing to raise awareness for their campaign and its products or services. Simply listing a campaign on a fundraising portal is not enough and why 60% of rewards-based campaigns fail.
For example, check out the profiles below to see their company websites, their social media credentials on Facebook, LinkedIn and Twitter and then Google their founders names and company names to see what they have done to promote their company in the news media.
It will be easy to see what management teams have done the proper prep work and planned effective marketing campaigns and which teams haven’t even been able to cobble together a simple company website.
If a management team can’t build a simple website, how in the world can they run a successful business?
One founder commented that, “They didn’t build a website because they wanted everyone to focus on their crowdfunding campaign profile.”
Most investors will read everything they can about the company, their products/services, news stories, research reports, industry analysts projections for the marketplace, etc., etc.
The goal should be to provide enough information to remove all the fear, doubt and uncertainty from the investment sales equation and give them the urge to invest before they even start reviewing the SEC financial disclosure information on the crowdfunding portal’s website.
For example, let’s take at look at NextRX. They are on the StartEngine platform.
The good news is that they have a website, but not one shred of industry facts, figures or industry growth projections to support the fact that the Medical and Recreational Marijuana industry is currently the fastest growing industry in the United States and is expected to reach more than $22.8 billion in revenue in the next 4 years. Not one single fact about the 16 additional states that will probably sign new cannabis regulations into law during 2016 that will take the U.S. from 4 legal markets to more than 20.
Is providing some research on local or national marijuana industry markets important? Hell yes.
As an investor, I want to know, in detail, about my possibility of earning a nice return-on-investment for buying shares in their company. I would love to say this is why they haven’t raised any money, but its not. A smart investor relations team would use their current banking problem and turn it into an opportunity to expose the hurdle they face with setting up an escrow account and use the example to try and put more pressure on the financial banking system and the U.S. Government to remove marijuana as a Class One drug so banks don’t have to worry about breaking federal law.
Why not provide a Marijuana Pitch Video like this one? It practically makes the investor want to jump in before it’s too late! If the big investors are doing it, then I certainly don’t want to miss out on the next big industry that is almost guaranteed to boom in the U.S.
Why not include a Marijuana Industry Analyst Report like this that projects a $22.8 billion industry in the next 4 years. It would be kind of like investing in a liquor company right before prohibition ended.
As a reporter, perhaps I want to write a story based on the marijuana’s industry’s potential growth. But the company’s management team has failed to provide a media kit with company backgrounders, executive head shots, bios, press releases, market research, white papers, photos, graphics, etc., which means they are very inexperienced business executives and have never worked in a big corporation. To me this means this company will mostly likely fail as business because they certainly do not understand marketing, which is the key to all sales growth.
Amount Raised: $221,115
Amount Raised: $188,229
Amount Raised: $112,500
Amount Raised: $63,300
Amount Raised: $17,505
Amount Raised: $11,800
Amount Raised: $11,060
Amount Raised: $0 (on hold because escrow account closed by bank)
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United States – We have updated our List of the Top 100 Global Crowdfunding Sites for 2016 in the United States, Europe, Asia, South America, Africa and other global markets.
Clicking on the website traffic ranking links below will take readers to one of the most insightful resources of information that details each website’s traffic ranking; the number of unique visitors per month; the average time spent on each site per visit; and the number of pages viewed per each visit.
Of more interest to crowdfunding campaign managers will be the precise ratio of social media, content marketing, search engine marketing, email marketing and display advertising that is being utilized by each crowdfunding site’s marketing campaigns to drive readers and investors to their crowdfunding profiles.
Even though these numbers reflect the aggregation of all of a given portal’s crowdfunding campaigns marketing efforts, they offer direct evidence of what is working and what is not. Note the difference on how much social media and display advertising is being used by the Top 10 Crowdfunding Sites compared the lower 90 crowdfunding sites.
This information can be used by crowdfunding sites as well as their crowdfunders to get a thorough understanding on how to plan future marketing campaigns that will have a higher than average success rate.
Want to know how Kickstarter has just retaken GoFundMe as the world’s #1 crowdfunding platform? Click on the Global Rank number links below and then use the comparison tool to show side-by-side comparisons of SEO keywords, link referrals, and social media usage. See the bottom of the page for more crowdfunding marketing tips.
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Source: Feb 2016 SimilarWeb Website Statistics
Crowdfunding PR’s goal is simple. We want to make it possible for crowdfunders to shop for crowdfunding platforms in a similar manner to the way media planners/buyers used to analyze ABC and BPA audit statements to buy advertisements in the business-to-business trade publication industry, where important media buying decisions were based on straight mathematics, not popularity or random guessing.
For example, would you rather run a crowdfunding campaign on a site where visitors are looking at 2-3 pages in around 3 minute’s time or a site where buyers are spending 6 to 11 minutes reviewing 6 to 10 pages?
This is the difference between shoppers who are visiting a site to see a particular crowdfunding campaign based on a marketing campaign versus people who are visiting a site to explore and actually shop around to find good deals to buy or invest their money.
This is why launching a campaign on Kickstarter or GoFundMe does not guarantee success. While Kickstarter, GoFundMe or Indiegogo may be the largest sites in the world, people are only spending enough time to shop through more than 2 to 3 crowdfunding profiles before they exit. While other sites like Razoo.com, DonorsChoose.org, and FundingCircle.com have visitors that stay more than 6 to 11 minutes and view 6 to 10 pages.
When researching, planning and executing successful marketing programs for both crowdfunding platforms as well as their individual crowdfunding customer profiles, it is extremely important to see what is driving the most traffic to any given crowdfunding site. Success is usually determined not only by what site the crowdfunding campaign is being hosted on, but also the marketing programs being harnessed to drive potential donors/investors to a specific crowdfunding profile.
Clicking on each link above will allow media planners/buyers to understand what role direct traffic (content marketing), search engines (SEO, PPC Advertising), social media (Facebook, LinkedIn, Twitter, Reddit, Quora), email marketing and display advertising (Google Display, Outbrain, AppNexus) are having on the success of crowdfunding campaigns.
For example, when planning a social media strategy, one of the most popular questions we get asked is – what social media networks are driving the most visitor traffic? Facebook, LinkedIn, Twitter, Quora, Reddit, YouTube, Pinterest, Instagram? The links above will make this answer crystal clear.
Not satisfied with your position on the list? Front Page PR’s team of crowdfunding PR, social media and marketing experts can help crowdfunding sites and crowdfunding campaigns plan the perfect mix of integrated marketing programs to significantly improve the amount of website traffic being driven to any given fundraising campaign or crowdfunding platform.
Feel free to call (512) 627-6622 with questions or request help to improve your website statistics before June.
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If you’d like to add your site to the Top 100 list, please fill out the form below.
Denver, Colorado – XTI Aircraft Company (XTI) is pioneering the first use of crowdfunding for commercial airplane development, and at the same time continuing its engineering work on the TriFan 600. In just two weeks, equity crowdfunders have reserved shares for more than $4 million to support the development of an airplane with the speed, range, and comfort of a business jet and the ability to take off and land like a helicopter.
“The response to our announcement of the equity crowdfunding plan and to this revolutionary aircraft itself has been overwhelming,” said XTI Vice Chairman Jeff Pino. “People are captivated and excited by the world of possibilities this aircraft presents. They recognize that this could be a once-in-a-lifetime opportunity and want to get involved early as stakeholders.”
“We are connecting aspiring investors with the progressive companies of tomorrow,” said StartEngine Chief Executive Officer Ron Miller. “Investor response to XTI Aircraft has been extraordinary. The company is clearly on course to change the future of flight.”
XTI is currently gauging potential shareholder interest under the terms of Regulation A, popularly referred to as Reg A+, of the JOBS Act, and will decide later this year whether to file an application for a financing to be qualified by the Securities and Exchange Commission (SEC). If qualified, XTI will then open the door to official share purchases on the StartEngine website to begin as soon as year-end. The equity crowdfunding “Reservation of Shares” and actual investment in XTI (upon SEC approval) is also available to foreign investors outside the U.S., subject to applicable laws of their country.
XTI is also raising funds through venture capital, private equity and accredited investors, while finalizing diligence on its technical solution and starting discussions with vendors that will lead to building a prototype. The general public’s opportunity to become shareholders is time-limited. Learn more about how to”Reserve Shares” with investment amounts ranging from $250 to over $200,000 at startengine.com/startup/xti,
In development for over two years, the six-seat TriFan 600 will be the world’s first commercially certified vertical takeoff airplane and will provide true door-to-door travel, with speed, range and comfort comparable to that of a business jet.
XTI is backed by highly accomplished aviation industry all-stars, including founder and chairman David Brody. “We couldn’t be more appreciative of, or committed to, our future shareholders,” Brody said. “We thank each one of you for joining us on this journey.”
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(512) 627-6622
@Crowdfunding_PR
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