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Agenda Customary Methods Customary Methods Basic Types Considerations New Method New Method What is it? Overview Comparisons How does it Work? Basic Types Requirements Examples Sources

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Equity Financing Debt Financing

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Equity Financing Equity Partners Controlling Interest Shareholders Company Ownership Debt Financing loans Collateral Debt service payments

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U Uses Social Networks Virtual process Universal appeal (national and international) Crowdfunding, or Crowdsourcing

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What is it? Similar to pier-to-pier lending, but you do not know the other individual Someone gives you money with no obligation on your part to pay it back! The supporting community is asked to support the project

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A Million High Fives, the largest electronic supply and volunteer drive in America. A Million High Fives Out-founded by Crowfunding by a 3:1 ratio over the past three years. Has been around for at least six years, gaining in popularity exponentially. Many new facilities have surpassed $10M funding in first year of operation At least 11 reputable sites Over $20B successfully funded in the past eight years

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Requirements TraditionalCrowdfunding Comprehensive Business PlanYesNo Sources Uses

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Requirements TraditionalCrowdfunding Comprehensive Business PlanYesNo Financial Forecasts & Pro FormaYesNo

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Requirements TraditionalCrowdfunding Comprehensive Business PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral / Guarantees / PledgesYesNo

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Requirements TraditionalCrowdfunding Comprehensive Business PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral / Guarantees / PledgesYesNo Credit / SolvencyYesNo

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Requirements TraditionalCrowdfunding Comprehensive Business PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral / Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or own-fundsYesNo

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Requirements TraditionalCrowdfunding Comprehensive Business PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral / Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or own-fundsYesNo Equity position / Controlling interestYesNo

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Requirements TraditionalCrowdfunding Comprehensive Business PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral / Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or own-fundsYesNo Equity position / Controlling interestYesNo Investor buy-outYesNo

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Requirements TraditionalCrowdfunding Comprehensive Business PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral / Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or own-fundsYesNo Equity position / Controlling interestYesNo Investor buy-outYesNo Business synopsisNoYes

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Requirements TraditionalCrowdfunding Comprehensive Business PlanYesNo Financial Forecasts & Pro FormaYesNo Collateral / Guarantees / PledgesYesNo Credit / SolvencyYesNo Down payment or own-fundsYesNo Equity position / Controlling interestYesNo Investor buy-outYesNo Business synopsisNoYes Revenue SharingNoYes

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Sources Uses

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1. Publish a project 2. Does not require comprehensive Business Plan 3. Establish $$$ needed, and timeline 4. Offer reward 5. Collect funds meeting or exceeding target An Assurance Contract returns contributions

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Voluntary Contribution based on project support Reward Driven or Revenue sharing no need to release financials Multiple uses Integral part of social commerce

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Project Based Definitive start & end period Music, Films, books, fund raising, construction, exploration, trips, research, etc Enterprise Start-ups Operations Product development and roll-out Working capital

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Project Rewards Special offers (no discounts) Limited offerings Enterprise Revenue sharing

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Kickstarter.com

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WickedStart.com

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At least one (1) Tweet every ten minutes on projects Facebook universe LinkedIn groups

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o Rockethub.com o Profounder.com o Peerbackers.com o Kickstarter.com o Indiegogo.com => for film or music industry o Quirky.com => for inventors o Invested.in.com

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