Material in this seminar is for reference purposes only. Neither any of the authors nor the publisher are engaged in rendering legal, accounting, investment, medical or any other professional service directly through this webinar. Neither the publisher nor the authors assume any liability for any errors or omissions, or for how this seminar or its contents are used or interpreted, or for any consequences resulting directly or indirectly from the use of this seminar. For legal, financial, medical, strategic or any other type of advice, please personally consult the appropriate professional. With Sherwood Neiss

Sherwood and His Business Partners are Responsible For the Crowdfunding Section of the US Jobs Act He lobbied for the US JOBS Act, worked with the White House and testified numerous times in the US Congress and Senate for its passage. He continues to work in Washington DC to make sure its implemented properly - and is considered by many to be the father of equity-crowdfunding Founded Success With Crowdfunding, the leading online crowdfunding education program and Crowdfund Capital Advisors – leading global advisory and consulting firm on crowdfunding and early-stage finance 24 Countries: Investors/Development Organizations/Entrepreneurs National Governments and Others including the US Department of State, World Bank, University of California, Berkeley. Was named among the 10 Most Influential People in Business Crowdfunding – Forbes, appeared on MSNBC, CNN, and has appeared in Fast Company, Inc., Fortune, The Wall Street Journal and numerous others. Spoken at Harvard, UC Berkeley and the Thunderbird School of Global Management. Sherwood Neiss Slide 2 Harnessing the Power of the Crowd to Fund Your Business

What is Crowdfunding? It employs the power of numbers to raise capital $100,000 x 1 financier BUSINESS FINANCIERCROWD obligation 1.Paula needs $100,000 for a start-up business 2.She completes a loan application or makes a pitch to a professional investor 3.She raises $100,000 from a single financier Scenario A: Traditional financing 1.Paula needs $100,000 for a start-up business 2.She applies on an online crowd platform and designs a social media campaign 3.She raises $100,000 from 25 friends, family members and social media contacts Scenario B: Crowd capital BUSINESS $4,000 x 25 financiers obligation

Umbrella term meaning the practice of funding a project or venture by raising many small contributions of money from a large number of people. Donation Crowdfunding vs. Crowdfund Investing Donation Crowdfunding is perks based or pre-ordering product Donation has no oversight yet in 2012, more than $3B was distributed Crowdfund Investing is securities based (debt or equity) and is therefore regulated Social media is the key ingredient to enable solicitation Standardization of process and documents to scale offerings According to our research, expected to be a $93M/year market Definition Slide 4 Harnessing the Power of the Crowd to Fund Your Business

Crowdfunding is emerging around the globe as providing significant capital to entrepreneurs and small business people. What type of business do you have or are you going to start? How much money do you need to start or expand your business? What kind of crowdfunding is right for you? How many Twitter followers do you have? Do you have the time and resources necessary to manage a crowdfunding campaign? Is crowdfunding right for your business? Slide 5 Harnessing the Power of the Crowd to Fund Your Business

Results from recent study on CF Slide 6 Every hour invested in a successful crowdfunding campaign returned $813! 48% of companies said they intended to use crowdfunding proceeds to hire new staff. The average amount raised across all forms of crowdfunding was $111,100! (Mean of $46,850) Within 3 months of CF round 28% had completed a round with VC or angel group – 43% in discussion with Institutional Investors Equity-based crowdfunding companies increased revenue by 351% (donation/perk CF realized 24% increase) Harnessing the Power of the Crowd to Fund Your Business

Direct Benefits of a Crowdfunding Campaign and ROI The average company invested 135 hours of staff time in their campaign Average of 45 days in the engagement. This means $813 dollars for every hour invested (or $347- $350 for campaigns with a mean raise of $46k) The average company spent just over $2,100 on the campaign itself (video, marketing, social media etc.) Making crowdfunding work for you Slide 7 Harnessing the Power of the Crowd to Fund Your Business

Why use CF? More than funders Slide 8 Harnessing the Power of the Crowd to Fund Your Business

Do you have a unique solution to problem that large numbers of people face? What is the pain point or problem that you are solving with your product or solution? If you can’t easily describe the problem and how your solution is, you’re not ready to go to the crowd. Build the right team! Investors invest in the team. They want to know that you can build and lead an effective team Create a killer video! And view as many successful campaign videos as you can Become a social media madman/madwoman! Amplify your message Create all the necessary documents and live by them Learn the details of the US JOBS ACT How do I harness the power of the crowd to fund my business? Slide 9 Harnessing the Power of the Crowd to Fund Your Business

Remember – many (most) crowdfunding campaigns don’t hit their target (but there are a few important tips that will help you avoid this) Most crowdfunding campaigns that succeed hit 25% of their target very quickly 30% rule for social proof – no one wants to be first on the dance floor (circle the wagons and don’t worry about mixing metaphors!) Go to the closest people in your life first. (before you launch your campaign) Then go out in concentric circles for your core contacts Preparation is key! Invest in yourself. Learn as much as you can – before – you begin Plan on up to 6 hours a day for 30 to 90 days to run your crowdfunding campaign Raising money takes a lot of work – but you can do it! and we are here to help! Visit the site for resources. How do I harness the power of the crowd to fund my business? Slide 10 Harnessing the Power of the Crowd to Fund Your Business

Sherwood Neiss

Sherwood Neiss Special Efactor / Success With Crowdfunding Coupon COUPON: 50% OFF Keys to Successful Crowdfunding OR Advanced Lessons in Crowdfund Investing COUPON CODE = EFACTOR50 Supplies are Limited

Lessons Learned Does crowdfunding have a marketing benefit that translates into Sales? Crowdfunded companies (donation/perk) increased quarterly revenues by an average of 24% post crowdfunding (not including amounts raised by crowdfunding) Equity-based Crowdfunding companies increased revenue by 351%! Making Crowdfunding Work For You Slide 13 Harnessing the Power of the Crowd to Fund Your Business

The average company participating in a reward-based/perk- based crowdfunding campaign only had 1 employee – the founder. The average size of the company using debt or equity crowdfunding had 2.1 employees. 52% chose crowdfunding as their first means of financing. Making Crowdfunding Work For You Slide 14 Harnessing the Power of the Crowd to Fund Your Business

Material in this seminar is for reference purposes only. Neither any of the authors nor the publisher are engaged in rendering legal, accounting, investment, medical or any other professional service directly through this webinar. Neither the publisher nor the authors assume any liability for any errors or omissions, or for how this seminar or its contents are used or interpreted, or for any consequences resulting directly or indirectly from the use of this seminar. For legal, financial, medical, strategic or any other type of advice, please personally consult the appropriate professional. Lessons Learned From The Most Recent and Comprehensive Study on the Impacts of Crowdfunding Robert Mitchell Making Crowdfunding Work For You

Crowdfunding is here and spreading around the globe as a way to fund small and start-up businesses Those who succeed in their crowdfunding campaigns – see tremendous return on investment ($813 per hour spent on it) Remember the average amount raised across all forms of crowdfunding was $111,100! (Mean of $46,850) We are here to help! Free Webinars, social media inks to relevant information, and our how – to programs. Conclusion Slide 16 Harnessing the Power of the Crowd to Fund Your Business