Venture Capital Resource Guide
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Charitable Crowdfunding: Who Gives, to What, and Why?
APRIL 2021 Charitable Crowdfunding: Who Gives, to What, and Why? RESEARCHED AND WRITTEN BY Indiana University Lilly Family School of Philanthropy RESEARCHED AND WRITTEN BY — Indiana University Lilly Family School of Philanthropy The Indiana University Lilly Family School of Philanthropy is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy through its academic, research and international programs, and through The Fund Raising School, Lake Institute on Faith & Giving, Mays Family Institute on Diverse Philanthropy, and Women’s Philanthropy Institute. Learn more at www.philanthropy.iupui.edu INDIANA UNIVERSITY LILLY FAMILY SCHOOL OF PHILANTHROPY PROJECT TEAM — Una O. Osili, PhD Associate Dean for Research and International Programs Jonathan Bergdoll, MA Applied Statistician Andrea Pactor, MA Project Consultant Jacqueline Ackerman, MPA Associate Director of Research, Women’s Philanthropy Institute Peter Houston, MBA Visiting Research Associate With special thanks to Dr. Wendy Chen, Dr. Debra Mesch, and Dr. Pamala Wiepking for reviewing the survey questionnaire. The survey was fielded by AmeriSpeak at NORC. The report was designed by Luke Galambos at Galambos + Associates. This research was completed with funding from Facebook. The findings and conclusions contained within are those of the authors and do not necessarily reflect official positions or policies of Facebook. INDIANA UNIVERSITY LILLY FAMILY SCHOOL OF PHILANTHROPY — 301 University Boulevard, Suite 3000, Indianapolis, IN 46202 317.278.8902 / [email protected] / @IUPhilanthropy / www.philanthropy.iupui.edu Contents Introduction ................................................... 02 Key Findings ................................................. 02 Background ................................................... 05 What is Crowdfunding? ...................................... -
Practical Guidance at Lexis Practice Advisor®
Practical guidance at Lexis Practice Advisor® Lexis Practice Advisor® offers beginning-to-end practical guidance to support attorneys’ work in specific legal practice areas. Grounded in the real-world experience of expert practitioner-authors, our guidance ranges from practice notes and legal analysis to checklists and annotated forms. In addition, Lexis Practice Advisor provides everything you need to advise clients and draft your work product in 14 different practice areas. Douglas S. Ellenoff Market Trends: Crowdfunding by Douglas S. Ellenoff, Ellenoff Grossman & Schole LLP (all market data by Sherwood Neiss and Jason Best, Crowdfund Capital Advisors) Overview Unlike other provisions of the Jumpstart Our Business Startups Act of 2012 (the JOBS Act), Regulation Crowdfunding securities-based crowdfunding, also known as Title III, had only slightly more than six months of results by the end of 2016, since this particular provision only went into effect May 16. Regulation Crowdfunding prescribes rules that permit securities-based crowdfunding by private companies without registering the offering with the Securities and Exchange Commission (SEC) pursuant to new Section 4(a)(6) (15 U.S.C.S. § 77d) of the Securities Act of 1933, as amended (the Securities Act). Consequently, pursuant to this provision, this statutorily permitted form of crowdfunding is only permissible in the United States, although there are versions of Regulation Crowdfunding in other jurisdictions. During the limited six-month initial period of Regulation Crowdfunding, there has been a slow but steady increase in all aspects of this emerging industry. On the day of implementation, there were fewer than 10 Financial Industry Regulatory Authority (FINRA) approved crowdfunding portals and nearly 25 entrepreneurial campaigns posted to those same sites for investor consideration. -
Resources for Startups and Entrepreneurs Microwork
Resources for Startups and Entrepreneurs 1. Microwork 2. Sharing Economy 3. The Investment Cycle 4. EU SME and Startup Funds 5. Microlending, Microfinancing, and Microcredit 6. Crowdfunding (P2P Financing) 7. Alternative Lending 8. Vendor/PO Financing and Online Factoring 9. Other Sources of Financing 10 Resources Microwork (get paid for fulfilling tasks online) Amazon Mechanical Turk LiveOps InnoCentive Samasource Paid online survey sites Kindle Direct Publishing (self-publishing) Craiglist (classified ads) Monster (find a job) Newsy or CNN iReport (citizen journalism) YouTube Partner (share ad revenues) CCNow (accept credit cards and PayPal payments) Amazon Associates (get a commission on referred sales) EBay or Etsy or Alibaba (sell things, including handicrafts) Shareconomy (Sharing Economy) View introductory video AirBnB or Couchsurfing (share your home for a fee) Eatwith or Kitchensurfing (host a meal and get paid) Vayable (become a tour guide) Uber or Lyft or Sidecar (give rides in your car) BorrowedBling or Girl Meets Dress or Rent the Runway (lend your jewelry and haute couture for a fee) Yerdle or Snap Goods (Simplist) or Open Shed (swap, rent, or borrow things) Relay Rides or Getaround (rent out your car) Favor Delivery (get deliveries – or deliver) Task Rabbit (handyman services) Waze (community rides) The Investment Cycle Register firm in target market Doing Business Equity structure Common stock Stock options Convertible debt Series A Preferred Stock (convertible to common stock on IPO/sale) Investment Cycle - Overview Seed -
Dare to Venture: Data Science Perspective on Crowdfunding Ruhaab Markas Southern Methodist University, [email protected]
SMU Data Science Review Volume 2 | Number 1 Article 19 2019 Dare to Venture: Data Science Perspective on Crowdfunding Ruhaab Markas Southern Methodist University, [email protected] Yisha Wang Southern Methodist University, [email protected] Follow this and additional works at: https://scholar.smu.edu/datasciencereview Part of the Entrepreneurial and Small Business Operations Commons Recommended Citation Markas, Ruhaab and Wang, Yisha (2019) "Dare to Venture: Data Science Perspective on Crowdfunding," SMU Data Science Review: Vol. 2 : No. 1 , Article 19. Available at: https://scholar.smu.edu/datasciencereview/vol2/iss1/19 This Article is brought to you for free and open access by SMU Scholar. It has been accepted for inclusion in SMU Data Science Review by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. Markas and Wang: Data Science Perspective on Crowdfunding Dare to Venture: Data Science Perspective on Crowdfunding Ruhaab Markas1, Yisha Wang1, John Tseng2 1Master of Science in Data Science, Southern Methodist University, Dallas, TX 75275 USA 2Independant Consultant Dallas, TX 75275 USA {Rmarkas, YishaW}@smu.edu, [email protected] Abstract. Crowdfunding is an emerging segment of the financial sectors. Entrepreneurs are now able to seek funds from the online community through the use of online crowdfunding platforms. Entrepreneurs seek to understand attributes that play into a successful crowdfunding project (commonly known as campaign). In this paper we seek so understand the field of crowdfunding and various factors that contribute to the success of a campaign. We aim to use traditional modeling techniques to predict successful campaigns for Kickstarter. -
Crowdfunding and Crowdsourcing
Crowdfunding and Crowdsourcing Drew Tulchin July 13, 2016 Training Objec-ves • Understand possibili-es, limitaons of crowdfunding & crowdsourcing • Explore different types of crowdfunding models; when each appropriate • Gain familiarity with some online plaorms • Learn best prac-ces • Check out case studies Have fun! Please ask ques/ons at any /me About UpSpring www.upspringassociates.com Network of seasoned consultants for impact investment and development to help businesses, organizations, foundations and governments "Do well by doing good" • Certified HubZone Small Business • ‘B Corporation’ since 2010, the first in New Mexico • Honors: 2015, ‘14 & ‘11 “One of the Best for the World” One of 119 companies from 20 countries 2012 Honoree NM Sustainable Business of the Year Drew Tulchin, MBA, Managing Partner 16 years experience building start-ups and growing organizaons. Specializing in the 'triple boOom line,’ focus is market driven business success that generates social, community, and environmental value Consul-ng experience with numerous Nave American Tribes and in 40+ countries from A (Afghanistan) to Z (Zambia) Recent capital raises: Ohkay Owingeh Housing Authority in NM, US MFI from the U.S. Dept. of Treasury, Koolkids in Vietnam, Solar and Energy Loan Fund (SELF) in Florida, and Sea2Table in NY 100+ publicaons and presentaons on these topics 100+ strategic and business plans Efforts >$100 mil in socially mo-vated capital Biz plan winner, Global Social Venture Comp; Prisma Microfinance raised venture $1.2 mil Helped raise $2.7 mil -
Community Supported Businesses, Illinois Institute for Rural Affairs
Rural Research Report Community Supported Businesses: Grassroots Entrepreneurship Community supported businesses (CSB) are gaining popularity in rural areas for business startup ventures and expansions. This Rural Research Report describes CSBs, mainly based on experiences in rural Vermont, where this entrepreneurial phenomenon is well developed, and discusses issues and opportunities for wider application elsewhere. Community Supported Businesses Explained Winter 2015 Volume 25, Issue 1 CSBs are based on a closer relationship with customers than the simple commer- cial transaction involved in the sales of products or services. As the word supported implies, CSBs not only have a relational, but also a financial connection with their communities, either directly on a personal basis, through an intermediary, or some- times through a public agency. In addition to patronage, finance is typically in the by William Keyser form of advance payments for goods or services, with or without interest, as well as through loans, grants, or, less frequently, equity—frequently in place of or in addition to traditional bank loans. The author is The word community usually implies people in a specific location, but it can equally apply to people who share similar interests. Often, these two types of community overlap. In Vermont villages and small towns, for instance, many people share an interest in eating locally produced or organic food. There is also likely to be two- way support such that money recirculates within the community through businesses buying local products and services. The proximity of financing sources reinforces the sense of community. CSBs are frequently modeled on Community Supported Agriculture (CSA)—a widely known and understood way for farmers to sell their produce to subscribers ahead of production, thus helping to finance the cash flow for their activities early in the season when there is little or no revenue. -
Predicting Startup Crowdfunding Success Through Longitudinal Social Engagement Analysis
Predicting Startup Crowdfunding Success through Longitudinal Social Engagement Analysis Qizhen Zhang, Tengyuan Ye, Meryem Essaidi, Shivani Agarwal, Vincent Liu and Boon Thau Loo University of Pennsylvania {qizhen,tengyy,essaidim,ashivani,liuv,boonloo}@seas.upenn.edu ABSTRACT concerning opinions on their industry and the background of their A key ingredient to a startup’s success is its ability to raise funding team. “Buyers” correspond to accredited investors that can choose at an early stage. Crowdfunding has emerged as an exciting new to make small risky investments in growing companies. mechanism for connecting startups with potentially thousands of Since this funding mechanism is a relatively new phenomenon, it investors. Nonetheless, little is known about its effectiveness, nor is unclear whether crowdfunding is as effective for entrepreneurs to the strategies that entrepreneurs should adopt in order to maximize raise funding as more traditional approaches, which rely on word- their rate of success. In this paper, we perform a longitudinal data of-mouth introductions and face-time with professional investors. collection and analysis of AngelList - a popular crowdfunding social On the one hand, the barrier to success is lower. Indeed, investors platform for connecting investors and entrepreneurs. Over a 7-10 in crowdfunded companies often perform less due diligence (com- month period, we track companies that are actively fund-raising on pared to traditional investors), due to the small amounts of capital AngelList, and record their level of social engagement on AngelList, they invest and their general lack of expertise. Companies seeking Twitter, and Facebook. Through a series of measures on social en- to raise capital via crowdfunding mechanisms also benefit from the gagement (e.g. -
Crowdfunding Cheat Sheet
Crowdfunding Cheat Sheet Crowdfunding is a new, transformative capital-raising process empowered by technology that turns the trust and goodwill of your network into funds to start or grow your business by allowing a large number of people to share small amounts of their social, creative, and financial capital Type of Donation Rewards Investment (JOBS Act) Intrastate/DPO Lending Crowdfunding contributions in exchange securities, unaccredited securities, online platforms for rewards or perks, and accredited** investors, unaccredited and How does it fundraising for personal that match pre-sales/pre-payment for subject to SEC rules - accredited** work? needs or causes borrowers with products before Reg CF, Reg D (506c), investors with individual lenders manufacturing Reg A+ state-specific rules individuals, individuals, startups & existing startups & existing businesses pre-startups, startups Who is it for? individuals, nonprofits pre-startups, startups, businesses with local with an investor strategy & existing existing businesses, nonprofits focus businesses ArtistShare ~ Barnraiser AgFunder** ~ AngelList** ~ Bankroll CaringCrowd ~ Causes Credibles ~ Crowd Supply CircleUp** ~ Crowdfunder** CauseVox ~ Classy Experiment ~ Fundable Crowdfund Mainstreet ~ EquityNet** CrowdRise ~ Deposit-a-Gift Hatchfund ~ iFundWomen Fundable** ~ Honeycomb Credit DonorsChoose ~ FirstGiving no platform needed Examples of Indiegogo ~ InKind Localstake ~ Manhattan Street Capital Kiva* Fundly ~ Fundrazr or state-specific Kickstarter ~ Patreon -
May 28Th, 2020 Submission Via Web Site Securities And
May 28th, 2020 Submission via Web Site Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549-1090 Re: Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets; File Number S7-05-20 We appreciate the opportunity to comment on the proposed rules. Wefunder is the largest funding portal by investment volume. We are also an exempt reporting investment advisor that forms venture capital funds for accredited investors. Founded in 2011, we helped Senator Brown, Senator MerKley, and Rep. McHenry during the drafting of the JOBS Act. Since then, we’ve helped issuers raise over $135 million from over 600,000 investors via Regulation D, Regulation A+, and Regulation Crowdfunding. We are a Public Benefit Corporation with a dual mission: 1) To democratize investing so that every American has the opportunity to invest in the companies that they love. 2) To increase the number of small businesses and startups that get formed, by spreading the best of Silicon Valley culture to the rest of America. As one of the few platforms to raise funds for companies that are competitive among professional investors (as evidenced by over $4 billion in venture capital bacKing companies first funded on Wefunder), our comments are focused on improving the regulations so that unaccredited investors may bacK higher quality issuers under Regulation Crowdfunding. We are impressed by the proposed rules. Overall, as a pacKage, we believe these rules are highly beneficial to both issuers and investors. However, there are areas that can be improved. Our letter is divided into seven parts: I. -
Beginners-Guide-To-Raising-Capital
THE STARTUP TOOLKIT SERIES | Beginner’s Guide to Raising Capital | 2 The Startup Garage works with entrepreneurs in early stage, high-growth companies to attract investment and get out of the “garage.” We help startups achieve the milestones investors care about. Our team has helped raise over $200 million for startup businesses. Beginner’s Guide to Raising Capital Beginner’s Guide to Raising Capital is a comprehensive resource for learning the basics of the fundraising process. It contains actionable items to put new business on the path to reaching funding goals, and even covers tips for maintaining personal mental health as an entrepreneur. The end goal is to create a scalable, investor-ready startup — actively involved in the community and ready to #GetFunded. The Startup Garage.com • (858) 876 - 4597 © 2014 The Startup Garage — All rights reserved. This article may not be reprinted, reproduced, or retransmitted in whole or in part without the express written consent of the author. THE STARTUP TOOLKIT SERIES | Beginner’s Guide to Raising Capital | 3 Beginner’s Guide to Raising Capital ABOUT THE AUTHOR 4 MILEStone #5: MARKET Traction 33 Bio: Tyler Jensen Surveys Beta Testing INTRODUCTION 5 Crowdfunding Letters of Intent PreparinG FOR FUNDRAISING 7 Contracts Competitor Market Traction MILEStone #1: PreparinG YOURSELF 9 MILEStone #6: LEGAL Foundation 36 MILEStone #2: BUSINESS PLANNING 11 Business Planning MILEStone #7: OperationaL SYSTEM 40 Financial Projections What’s NEXT? 42 Capital Strategy Alternative Sources of Investment CONCLUSION 46 Valuation Other Investor Documents Identifying Potential Investors Pitching Due Diligence Negotiation Strategies Term Sheet Closing the Deal Follow-up MILEStone #3: Product DEVELOPMENT 29 MILEStone #4: TEAM BUILDING 30 Partners/Co-Founders Key Staff Board of Advisors Board of Directors Business Advisors and Mentors Personal Support Team Professional Service Providers The Startup Garage.com • (858) 876 - 4597 © 2014 The Startup Garage — All rights reserved. -
View the Fund Wisdom Research Reports Produced Yearly And
Index About Highlights How Much is Getting Invested over Time Live Investment Options Top Deals Top Valuations Platforms Geographic Review Platforms Determining which Platform to List with Capital Type Industry 1 About Data: Mostly generally solicited offerings of startups raising their seed round 198 Offerings listed between 1/1/14 - 12/31/14 with $227MM invested of the 948 total offerings and $385,175,128 Raised to Date. Sources: AngelList, SeedInvest, WeFunder, Onevest, Fundable, EquityNet, Return On Change, CrowdFunder, and EarlyShares, AGfunder Conversations with founders of firms listing their offerings. Highlights AngelList, leading platform for online equity offerings and amount raised Companies are using equity funding platforms as a marketing channel while the majority of the money being invested is still happening offline. Online Equity Investing figures are a fraction of what is publicly disclosed due to lack of regulation on how to classify the round. The Infor mation Technology sector captured the most investment dollars. California had the most offerings, capturing the greatest investment amount. 53 offerings were fully funded A close split of firms offered equity vs. convertible debt. 2 How Much is Getting Invested over Time ? 2014 Investment Trends First spike: $50 million for Life360, of which only 1% was transacted through AngelList Second spike: $17 million Real estate fund, $0 transacted through EquityNet Note: Companies are using equity funding platforms as a marketing channel while the majority of the money being invested is still happening offline. Live Investment Options 239 total offerings available to invest in online as of Dec 31. 2014 3 Top Deals - Successful Companies Raising Money Top Funded Firms 2014 4 Top Valuations - Successful Entrepreneurs Top 6 Valuations from Firms Raising 2014 5 Platforms Platform Market Share by Share by Amount Funded 2014 Deals Funded 2014 Several companies have listed on multiple platforms. -
Freeing Investor Capital for Small Business
CONTENTS Introduction 1 Crowdfunding 3 JOBS Act of 2012 4 Crowdfunding at the state level 5 Opening 401(k)s to intrastate crowdfunding 7 Conclusion 8 About the author 8 research or product development or seek out new customers. Enabling small businesses to access the capital they need is an urgent priority of public policy. Yet small businesses are R STREET POLICY STUDY NO. 36 having a harder time getting capital through the traditional June 2015 financial system. Banks are less willing to lend to small businesses than ever before, both because of deteriorating creditworthiness after the recent economic downturn and because small-business FREEING INVESTOR CAPITAL lending is simply no longer as profitable. More stringent banking regulations impose additional costs and the wave FOR SMALL BUSINESS of bank mergers (particularly, the decline of community banks)3 has diminished the local knowledge of community Oren Litwin businesses that used to be banks’ competitive advantage.4 Additionally, lacking a strong secondary market for small- INTRODUCTION business loans, in contrast to the market for conforming mortgage loans,5 banks are unwilling to carry small-business Something has gone wrong with small business in America. lending risks on their books. The business of banking instead For the first time since statistics were kept, the rate of busi- has turned disproportionately to providing consumer and ness failure now exceeds the rate of business creation.1 It housing loans.6 isn’t that businesses are failing more often than usual; rather, new business creation has slowed markedly and the rate con- 3. Institute for Local Self-Reliance, “Access to Capital for Local Businesses,” April 15, tinues to slow further.