Crowdfunding and Community Investment · Also advisors, attorneys, accountants, financial advisors,...
Transcript of Crowdfunding and Community Investment · Also advisors, attorneys, accountants, financial advisors,...
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Crowdfunding and Community InvestmentUsing Local Money to Implement Local Projects
MML UP Summit
June 1, 2017
Angela Barbash, RevalueLuke Forrest, MML
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Why is this a conversation?
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But first…
Activation of local capital
Aggregation of local capital
Local investment of local capital
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Now, why?
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Historical context
Local economies
Economic evolution
Regional influence
Global influence
Global competition
Loss of control
Let’s talk Michigan…
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And the BIG why?
SURVIVAL.
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What are we talking about?
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Two major buckets
Not Investment-based
Donation Pre-sale
Investment-based
Debt Equity
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Examples
$250,000 $850,000
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Investment-based terms to know
Platform: a website that connects businesses/projects with investors/donors/consumers for
the purposes of securing capital
Stakeholder: YOU! Also advisors, attorneys, accountants, financial advisors, community
leaders
Escrow: when money is moved from an investor to an intermediary before it is dispersed to
the business
MILE: Michigan Invests Locally Exemption, passed in 2013
JOBS Act/Title III: Federal investment crowdfunding legislation, rules implemented in 2016
Accredited/Nonaccredited: Over $1 million in net worth/under $1 million in net worth
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Examples
$97,000 $25,000
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Donation/Pre-sale-based terms to know
Crowdgranting: evolving crowdfunding by combining the power
of crowdfunding with the resources of grantmaking organizations
Perks/Rewards: what you get in exchange for your donation (not
all campaigns have these)
Public Spaces, Community Places (PSCP): a crowdgranting
partnership between the Michigan Economic Development
Corporation (MEDC) & Patronicity
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Engaged: Citizens given power to control grants
Innovative: Combining traditional grants w/technology
Effective: MEDC spends less time reviewing projects, more time supporting them
Public Spaces, Community Places
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99%
$7,299,093
5,362,639
1,000,000+
3.5
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How is it done?
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Principles
1. Plan on a 6 month process, even for short 30 day campaigns.
2. This is not ‘field of dreams’; you need an audience first.
3. Have a story to tell, and tell it using video.
4. Status updates need to be posted regularly.
5. Teams of 3 or more are 4x more likely to be fully funded.
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Platforms
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Strategies
Preferred Equity
$2,500 Minimum
All Investors
Revenue Share
$500 Minimum
All Investors
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Platforms*
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Strategies
PSCP Match
289 Backers
10 Perks
81 Backers
14 Perks
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Break time!
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Mock Scenario Setup
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Report Out & Debrief
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Before…
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After…
Total of 33States implemented intrastate crowdfunding measures + 7pending
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Before…
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After…
Total of 51Cities in Michigan participate in PSCP
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What now?
1. Share this information with key community leaders
2. Commit to helping a business or project launch in your town this year
Angela [email protected](888) 642-2728 (office)
Luke ForrestDirector of Civic [email protected] (cell)