MichiganFunders.com Launches 1st Equity Crowdfunding Site in Detroit for Non-Accredited Investors and Entrepreneurs

Under the Michigan Invests Locally Exemption (MILE) Act, New Rule Allows Non-Accredited Investors to Invest Alongside Angel Investors for 1st Time in 80 Years

By Robert Hoskins

Detroit, MI – MichiganFunders.com announced that it launched the 1st equity crowdfunding site in Detroit to connect Michigan-resident investors and Michigan-based businesses that are seeking growth funding. The equity crowdfunding site is  the first portal based in Michigan to allow investors to participate in private equity investments in exciting local startups, expanding businesses, and real estate. All investors, regardless of income, are able to participate in funding the future. Investing in exciting local Michigan businesses has never been easier. 

MichiganFunders Equity Crowdfunding Site for Non-Accredited and Angel Investors

Following the passage of Public Act 264, co-founders David Tessler, local attorney Jeffery Freeman, and Niles Heron partnered to build the platform, which will for the first time, open up investment opportunities to Michigan-based non-accredited investors. The site launched in February 2015 and will be open to both prospective investors and entrepreneurs. 

According to a leading research report, How Accelerators Kickstart Startup Ecosystems by TechCocktail, “In 2013, over $120 million in venture capital was invested in 40 Michigan companies, the most deals done in a single year in the past decade. The state now boasts 33 venture capital firms (50% more than 2008), $1.6 billion of capital under management, and over 90 investors (84% more than 2008). Its Q2 investments in 2014 landed it #11 among US states.”

In 2014, Google recognized the huge potential for growth in Detroit and launched Grand Circus Tech Hub located inside M@dison Block to provide financial support and resources for entrepreneurs.  The investment is a sign that even Internet Moguls do not forget their roots. Google co-founder Larry Page was born in East Lansing, less than 100 miles from Detroit, and graduated from the University of Michigan.

Equity Crowdfunding will augment Michigan’s ability to provide additional seed investment capital to their growing network of entrepreneur and startups organizations such as:

• Educational organizations like Build Institute, which offers courses on entrepreneurship and networking events, and the Creative Ventures Residency Program, which mentors designers.
• Co-working spaces like Co-Lab, Green Garage, Office in Detroit, Junction 440, Ponyride, Bamboo Detroit, and Practice Space. 
• Universities like the local Wayne State University, whose Blackstone Launchpad provides workshops, events, and mentorships for entrepreneurs. Other nearby universities with resources for entrepreneurs include the University of Michigan via its Venture Center, Oakland University through its Macomb-Oakland University INCubator, and Michigan State’s Spartan Innovations and co-working space The Hatch.
• Funding organizations like the Michigan Economic Development Corporation, Invest Detroit, Ludlow Ventures, First Step Fund, Fontinalis Partners, and many VC firms in neighboring Ann Arbor.

Michigan is the 10th most populated state in America, and growing yearly, with almost 10 Million residents. The state contribute’s in excess of $400 billion to the national GDP, which is more than Thailand, Austria, and a host of other countries produce for themselves yearly. Detroit was recently ranked a top-city for entrepreneurship and startups by Forbes.

The Michigan Invests Locally Exemption (MILE) opens up small business securities investments to all Michigan residents in a way not available nationally, or in the majority of other states. We’re from here, based here, and committed to working with local investors and small businesses to bridge the gaps.

“Michigan Funders firmly believes that the pursuit of dreams is an inalienable right, and should not be denied or deferred because of access or wealth. Within that is our belief that investors should be allowed access to investments, and businesses should be allowed access to capital – both within a truly democratic market,” said Niles Heron, Chief Business Development Officer at Michigan Funders.

Built on the CrowdEngine crowdfunding platform, state residents can now invest up to $10,000 per investment, per year, in startups, existing businesses, and real estate via crowdfunding platforms.

“CrowdEngine is proud to have been part of many crowdfunding ‘firsts’, and this is another key milestone in bringing equity crowdfunding to the world. This is the same technology trusted by investors and entrepreneurs around the world, but now we’re enabling a new investment experience for intrastate crowdfunding portals that is accessible, efficient, and secure,” said Jim Borzilleri, President.

Accelerators and Incubators can use CrowdEngine’s software to launch their own equity crowdfunding site that features:

• User-Friendly Tools  – That simplify the creation, promotion and securing of new investments for small businesses.
• Align Investors to Investments – With access to a broader range of locally based investments not limited by federal requirements of existing personal relationships, “accredited” investor status, or other federal compliance requirements.
• Streamlined due diligence  – A new population of investors and entrepreneurs can focus more on fundraising instead of paperwork, with digitized templates, automation and e-signing during the checkout processes. 
• Increased Convenience –  Michigan residents can now browse investments anytime, from anywhere, on any device.
• Investor Management – Once investments are complete, companies and entrepreneurs have one simple tool for investor communication, payouts, dividends, and quarterly updates.

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To Celebrate the 2nd Anniversary of the 2012 JOBS Act, Front Page PR Offers Low-Cost License Fee to Start Crowdfunding Training Classes throughout the United States

License Agreement offers Chambers of Commerce, SBA Offices, Small Business Development Centers (SBDC), SCORE & Startup Incubators and Business Accelerators the Opportunity to Offer Front Page PR’s Content to Launch Their Own Crowdfunding Training Programs

 By Robert Hoskins

AUSTIN, TX – Front Page PR announced a new low-cost licensed crowdfunding training class that will provide non-profits, economic development, Meetup groups and government agencies such as the Small Business Administration (SBA) with the basic training materials needed to begin educating entrepreneurs, veterans, startups, small businesses, high schools, junior colleges, universities and employment agencies on how to use crowdfunding to eradicate unemployment by facilitating new businesses and creating new jobs throughout the United States.

Front Page PR is the #1 Crowdfunding PR firm in America

For only $300 per year, licensees will receive the training materials needed to launch a crowdfunding advocacy training program in their community. The low price point should allow crowdfunding educators and experienced public speakers to break even on the very first class by charging attendees $25 or more to attend the seminar. Click here to buy a one-year license.

“Most Small Business Development Centers (SBDC) charge an average of $49 per class to attend classes on how to write a business plan, how to get a bank loan, how to seek venture capital, or how to seek alternative financing to start up a small business,” said Robert Hoskins, Front Page PR’s Director of Crowdfunding Campaigns. “At this price tag, our Crowdfunding Training Program will only take six paying customers to fund a full year’s subscription. After the initial cost, training 20 people per month at $49 would generate approximately $11,460 per year in revenue.”

Front Page PR will provide free Crowdfunding Training Class Workshops for instructors who want to provide the Crowdfunding Training Class, but have no knowledge of the crowdfunding industry or experience in teaching their communities how to launch successful crowdfunding campaigns. In addition, the workshops will include free press release templates and teach instructors how to utilize cost-effective PR/media relations programs to raise awareness for the classes within the local community.

Front Page PR’s Crowdfunding Seminar materials include:

• How to Plan a Successful Crowdfunding Campaign
• How to Conduct a Crowdfunding Competitive Analysis
• How to Shoot a Crowdfunding Pitch Video
• How to Write a Persuasive Crowdfunding Profile
• How to Offer Effective Perks & Rewards
• How to Set Up a Realistic Fundraising Goal

Even Fortune 500 corporations can get involved. Many large companies such as IBM have launched intranet crowdfunding programs to incentivize their employees. Crowdfunding campaigns can be used as an excellent research and development tool. Internal crowdfunding campaigns can be used to fast track great business ideas upward to management based on employee support, which completely bypasses the typical roadblocks that thwart innovation.

Front Page PR’s crowdfunding training class rollout will target Atlanta, Austin, Baltimore, Birmingham, Boston, Charlotte, Chicago, Columbus, D/FW, Detroit, Houston, Indianapolis, Jacksonville, Los Angeles, Memphis, Milwaukee, New York, Philadelphia, Phoenix, San Antonio, San Diego, San Francisco, San Jose, Seattle, Washington, DC and Wichita. Additional markets will be added based on market demand.

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Capital One Bank Gets into the Crowdfunding Business with Kiva Microlending Platform

By Robert Hoskins

Capital One announced that it will expand its “Investing for Good” partnership with Kiva by providing $500,000 to match loans made to U.S. small businesses on Kiva’s crowdfunding platform, helping entrepreneurs across the country with additional funding to start, sustain and grow their businesses.

Capital One to Match up to                                           $500,000 of Kiva Microloans

Kiva is a non-profit organization working to alleviate poverty by connecting people around the world through microlending. With as little as a $25 loan, anyone can help a borrower create new opportunities for themselves and their family. Together with more than 890,000 Kiva lenders and a worldwide network of microfinance institutions, Kiva has created economic opportunity for more than 975,000 borrowers. Since its inception in 2005, Kiva lenders have funded more than $390 million in loans with a 98.9% repayment rate.

A single loan, a single business or a single job can change the trajectory of families, communities, and cities. Now, with Capital One’s support, the amount donors lend will be matched and small business owners across the U.S. will be that much closer to realizing their dream.

Through Kiva’s proven microlending model, anyone with an Internet connection and $25 can help crowdfund a loan to a small business owner profiled on kiva.org. Since 2005, Kiva has crowdfunded more than $400 million in microloans by connecting a growing global community of 890,000 lenders to 975,000 entrepreneurs from five continents. In June 2010, Kiva opened up their crowdfunding platform to U.S. small business owners and aspiring entrepreneurs in several cities, including New Orleans, Detroit, Los Angeles and D.C. Now, with the support of Capital One, Kiva is bringing its popular microlending model to reach more entrepreneurs across the country.

“Small businesses are the engine of our economy, as they do well it has a ripple effect on local economies – jobs are created and communities are strengthened. Kiva helps make an important connection between local businesses and the people they serve, giving local community members a vested interest in business success,” said Jonathan W. Witter, President of Retail and Direct Bank, Capital One. “At Capital One, we’re committed to helping aspiring entrepreneurs and small businesses of every size grow and thrive – whether it’s directly through our products and services, or through innovative partnerships and digital channels like Kiva.org.”

Capital One’s support of Kiva’s work in the U.S. and small businesses builds on the successful launch of Kiva City D.C. in January. Kiva City D.C. is a new partnership between Capital One, Kiva and the Latino Economic Development Center (LEDC). Through this partnership, LEDC identifies entrepreneurs in the D.C. area who can benefit from a microloan, posts their profiles on kiva.org and administers the loan program. Since the launch just six weeks ago, nine local businesses in our nation’s capitol have received funding from more than 1,000 lenders and Capital One through Kiva City D.C.

“If the money stored in our wallets was given a new life for a short amount of time, as a loan to a small business owner, each of us could help to shape the course and success of the economy,” said Premal Shah, President of Kiva. “A single loan, a single business or a single job can change the trajectory of families, communities, and cities. Now, with Capital One’s support, the amount you lend will be matched and small business owners across the U.S. will be that much closer to realizing their dream.”

According to the Small Business Administration, small businesses create two out of three net new jobs in the U.S. over the last 17 years.

Over the past seven years, Kiva has helped to mainstream microlending and pioneered the field of crowdfunding. Capital One is also driving new innovations at Kiva through its support of Kiva Zip, a pilot program that aims to expand access to capital for entrepreneurs, lower costs of capital, and increase connections between lenders and borrowers. Through Kiva Zip, even individuals and organizations without loan programs can help bring borrowers onto zip.kiva.org to be crowdfunded.

Through Kiva’s proven crowdfunding model, anyone can go to kiva.org or zip.kiva.org and browse through profiles and stories of people in need of a microloan and choose someone to lend as little as $25. With a 98% repayment rate, the money that is lent to a small business owner is truly a loan, not a donation. Every dollar helps to crowdfund that business’ microloan, which in turn helps to support thriving local economies, communities and jobs.