1. FINANCIAL RESOURCES FOR LAUNCHING AND SUSTAINING YOUR BUSINESS: FROM MICROFINANCE TO CROWDFUNDING Bob Cohen Braintree Business Development Center

3. For rural businesses in Northeast Ohio We provide: Term loans of $1,000-$35,000 Current interest rate of 7.25%, other terms vary based on specific needs Loan uses include: equipment, inventory, business debt restructuring, and project based working capital

4. For rural businesses in Northeast Ohio Basic requirements: Collateral Personal guarantees Demonstrated revenue sufficient for loan payments

5. CROWDSOURCING ACCORDING TO SOHA EL BORNO Sharing collective knowledge Microvolunteering Crowd creation Crowd voting Crowd funding

6. CROWDFUNDING TYPES BY MARTY ZWILLING Good cause crowdfunding Rewards-based crowdfunding Pre-order crowdfunding Debt-based crowdfunding Start-up equity crowdfunding -Marty Zwilling Will the Real Crowdfunding Model Please Stand Up?

7. EMPOWER PEOPLE AROUND THE WORLD WITH A $25 LOAN Total Amount of all loans made through Kiva$356,256,700 Number of Kiva Users:1,270,453 Number of countries with Kiva Users221 Number of borrowers through Kiva:872,349 Number of loans funded through Kiva:476,537 Current repayment rate (all partners):98.98% Average loan size$398.69

8. Provides a list of fundable categories Deducts 5% from every donation along with 2.9% for using PayPal According to them: Launched on May 10, 2010, GoFundMe is a do-it-yourself online fundraising service that has helped thousands of people raise millions of dollars for the fundraising ideas that matter to them most. From exciting life events like weddings & graduations to challenging circumstances like accidents & illnesses, the GoFundMe remains one of the best ways to raise money online. www.gofundme.com Blueberry Picking Farm

9. Rock the Post has supported more than 200 projects Charges a 5% fee Now takes an “all-or-nothing approach” Project creators develop a video to promote their fundraising http://www.rockthepost.com/

10. SoMoLend, as its name implies, uses debt crowdfunding According to them: SoMoLend gives entrepreneurs the tools and financing they need and lenders the opportunity to invest in the things, ideas and people they care about most, all the while earning higher than average returns on their investments SoMoLend allows investors to choose which businesses to support based on geographic location, industry, and risk level, using a GPS location tracking system so investors can find business borrowers in their community. http://www.somolend.com

11. Offers rewards-based and pre-order crowdfunding Calls itself “CROWDFUNDING FOR STARTUP COMPANIES” Is adding equity-based crowdfunding components as the SEC rules take shape Fundable also takes an all-or-nothing approach http://www.fundable.com LapKeyBoard

12. KickStarter has raised more than 311 million dollars for 30,000 projects It has hundreds of projects going on at once and has geographic filtering available KickStarter is large enough to attract contributors It is another all or none platform http://www.kickstarter.com Surf Easy Heritage-breed-poultry Goldie Blox

13. THE JOBS ACT (JUMP-START OUR BUSINESS STARTUPS ACT) Legislation passed Congress with bi-partisan support and was signed into law by the president in the Spring of 2012. According to its proponents it would remove regulatory hurdles for small businesses and allow fast growing start-up companies to raise capital from private investors and in public markets. The Securities and Exchange Commission would draft the specific guidelines.

14. THE JOBS ACT (JUMP-START OUR BUSINESS STARTUPS ACT) Specifically the legislation would…. Remove the restrictions on advertising or soliciting investments Change who could qualify as an accredited investor Loosen the reporting requirements of the SEC, including provisions of the Sarbanes-Oxley Act

15. THE JOBS ACT (JUMP-START OUR BUSINESS STARTUPS ACT) The going has been slow…. The SEC missed a couple of deadlines

16. THE JOBS ACT Now, entrepreneurs can crowdfund, but only by offering products or services in exchange for contributions. That’s due to an SEC rule that forbids the marketing of “private securities.” The SEC has proposed amending that rule, which will allow sites to publicly offer and solicit the sale of actual shares in companies in exchange for investments. But one thing that still blocks most Americans from funding startups: accreditation. All investors who buy equity in a startup through a crowdfunding site must still be accredited investors. http://venturebeat.com/2012/08/29/crowdfunding-investors-sec-change/#Oq3HDZ0KkUXFFeRM.99 August 29, 2012

17. THE ‘CHALLENGES’ OF CROWDFUNDING -BILL CLERICO Fraudulent entrepreneurs with a slick video can dupe thousands into investing in a ghost company or nonexistent product Incompetent entrepreneurs can fail to deliver on their promises and waste millions of dollars of other people’s money Unsatisfied investors can dispute their transactions and amass huge liabilities for the platforms and payment processors Insecure platforms can risk credit card data, misappropriate funds or violate federal or state statutes

18. KICKSTARTER CHANGES THE RULES Due to recurrent problems and disappointments, Kickstarter made changes in project requirements It added a new section to the project called “risks and challenges” It requires submission of graphics, sketches, or drawings It prohibits the use of multiple quantities at any reward level

19. HOW TO MAKE THE BEST CROWDFUNDING PITCH -MOHANA RAVINDRANATH 1.Your story should be authentic, clear, and precise 2.Don’t assume your audience are experts in your field or even in investments 3.Choose your audience 4.Show the investor what you already have 5.Choose the investment platform carefully

20. THE BRAINTREE TEAM Bob Cohen, CEO Technology commercialization Agribusiness and cooperatives International trade Crowdfunding Presentation skills Bob Leach, Director of Operations Information technology Energy technologies Social media Facility design and management MicroSoft BizSpark TM Barrett Thomas, Microfinance Administrator Appleseed Microfinance Loan Program Tech SproutGrant Program Business Analysis

21. THE KENT STATE UNIVERSITY TEAM Bob Cohen, Program Coordinator Cooperative development Crowdfunding Presentation skills Roy Messing, OEOC Interim Director Cooperative finance Exit planning Common Wealth Revolving Loan Fund Chris Cooper, Program Coordinator Cooperative development Exit planning Communication technology