1. CROWDFUNDING www.sba.gov

2. Outline Legal Issues How to of Crowdfunding www.sba.gov

3. LEGAL ISSUES www.sba.gov

4. Accredited Investors Meet certain minimum income or net worth value Trusts, corporations, or charitable organizations have certain minimum asset levels www.sba.gov

5. JOBS Act Jumpstart Our Business Startups April 2012 Final rule approval October 2013 www.sec.gov www.sba.gov

6. JOBS Act Raise up to $1 million/year from anyone without having to do public offering Ordinary Investors can put up to $10,000 to SB that are not registered with SEC. www.sba.gov

7. JOBS Act Remove prohibition on general advertising – Rule 506 Sales limited to accredited investors Document accredited investors www.sba.gov

8. JOBS Act Rule 501 (Accredited Investor) Net worth >$1 million excluding value of primary residence Annual income >$200,000 in each of two most recent years; spouse $300,000 www.sba.gov

9. JOBS Act Review IRS forms past two years Written confirmation: –Register broker-dealer –SEC register investment adviser –Licensed attorney –CPA www.sba.gov

10. Concerns Seem tailored to Wall Street versus startup community Strong penalties for unintended violations – Banned from fundraising for year www.sba.gov

11. Concerns Keep filings confidential especially amounts raised for competitive reasons (Form D) Use third party to do SEC filings & act as data storage center for startups Startups always financing not set time frame. www.sba.gov

12. Patents America Invents Act Major Change - First to Invent to First to File System –Date of application versus date of invention –Provisional Patent - Good Idea www.sba.gov

13. HOW to of CROWDFUNDING www.sba.gov

14. Are You Ready Its more than an Adventure; It’s a Job! Idea Shown the $$$ Will Flow-WRONG! Fees - YES Possible Penalties www.sba.gov

15. Are You Ready Must be 18 years old Check to see requirements on U.S. Resident Major Credit Card or Debit Card May have to establish Amazon Payment Account www.sba.gov

16. Are You Ready Research is the KEY Review past CF site projects CF Website will determine Yes or No to your project www.sba.gov

17. Two Ways To Crowdfund Use existing CF sites Use your website & network www.sba.gov

18. Product; Service; Event Casual observer find interesting Unique; different or value added Describe project in 20 seconds www.sba.gov

19. Finances Research How Much You Need –Cost of Project –Cost of Rewards Promised –Don’t Forget Payment Fees Host Website Amazon www.sba.gov

20. Finances Taxes Person changes mind to fund – Loss Revenue (10-20%) Other services Do Financial Projections! www.sba.gov

21. Who Gives Friends & Families – NO Repeat Backers – NO <20% Average Pledge $30 www.sba.gov

22. Who Gives The Host Site is not where revenue grows from Create Network – “The Story” –Media –Unique Website for Campaign –Social Media www.sba.gov

23. Duration 30-Day 45-Day 60-Day 90-Day www.sba.gov

24. Duration Remember – Constant Communication –Reply to email –Create Blog & Update –Respond to Facebook, Twitter, etc. –Getting media coverage –Update on Rewards –Update Video –168 Hours – Global www.sba.gov

25. Campaign Start www.sba.gov Mid Point End

26. Video Be Real Two – Five Minutes Get to Point in First 30 Seconds You or Friend Present It –Passion www.sba.gov

27. Video Tech Shops Can Help –3-D Printing –Rapid Prototyping Show as much as you can: –Computer Model –Physical Prototype –Functional Prototype Can Use the 5 Senses www.sba.gov

28. Video Avoid Using Copyright Materials Audio –SoundCloud –Vimeo Music Store –Free Music Archive Video –www.Archive.orgwww.Archive.org www.sba.gov

29. Video Take Your Time Do It Right Don’t Forget To Say – How to Donate Goal:VIRAL New Videos Throughout Campaign www.sba.gov

30. Video Facebook Twitter You Tube Linked In www.sba.gov

31. Rewards Make sense & relate to project Awards at different payment tiers Value added or junk Did you figure into your costs www.sba.gov

32. Rewards Did fans offer reward ideas Limited rewards Personal touch (i.e. Thank You) www.sba.gov

33. Future Currently over 400 Websites Global www.sba.gov

34. Future For Profits Non Profits Match Funding Will Lenders Adapt? www.sba.gov

35. Reminder Market Research Finances Future Business Plan www.sba.gov

36. Resources www.crowdsourcing.org www.kickstarter.com www.crowdtilt.com www.feedthemuse.net www.indiegogo.com www.rockethub.com www.sba.gov

37. Resources Non Profit www.crowdrise.com www.fundly.com www.startsomegood.com www.sba.gov

38. Resources Business –www.angel.cowww.angel.co –www.appsfunder.comwww.appsfunder.com –www.quirky.comwww.quirky.com www.sba.gov

39. Resources International – Create 2 nd Language –www.ulule.comwww.ulule.com –www.newjelly.comwww.newjelly.com www.sba.gov

40. Examples Non Profit – Play For Profit – Manufacturer Product www.sba.gov

41. KEEP IT SIMPLE! www.sba.gov

42. Questions www.sba.gov