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MINI BOOTCAMP: GET READY FOR CROWDFUNDING10 STEPSMary Juetten, Founder & CEO

Crowdfunding Global Bootcamp & Convention October 15, 2013

Start on the Right Trak

Do NOT start with creating a:Campaign Pitch orBusiness Plan

THIS APPLIES TO ALL FINANCING!Disclaimer: This is intended to be general information. Nothing in this presentation constitutes legal advice. Please consult with an attorney before making any intellectual property protection decisions.

GET READY NOW

Equity is not yet Legal (Title III)

Create a Pipeline

Same steps as other Financing Sources

10 Requirements

1. Registration & Incorporation in US2. Names – Directors, Officers, >20% SH3. Business Description & BUSINESS PLAN4. Prior years Tax Returns 5. Financial Statements6. Use of Proceeds7. Offering Details & Progress Updates8. Share price & methodology (VALUATION)9. Ownership & capital10. Capital (existing, offering & differences)

EQUITY is not Easy

Tough requirements include:

Business Plans

Financial Statements

Valuation

Incorporation

LLC CORPVS.

NO SOLE PROPRIETORSHIP!

Names & People

Sweat Equity Contracts

Background Checks

Business Plan & Pitch

IDENTIFY IP

PROTECT IP

PICK A PLATFORM

BUILD SOCIAL CAPITAL

CREATE A PITCH

Got Intellectual Property?Why Care…

• IP theft costs US companies $250 billion annually

• 100% of all companies have IP

• 700K new startups annually vs. 20% protected IP after 1st year

• IP is most valuable asset and not on your Balance Sheet

• Exclude competition; Attract investment (incl. crowdfunding); Leverage & license

• Avoid IP loss, infringement, or business failure

Disclaimer: This is intended to be general information. Nothing in this presentation constitutes legal advice. Please consult with an attorney before making any intellectual property protection decisions.

What is IP?

• Patents (utility & design)• Copyright ©• Trademark/Service mark TM SM ®• Trade secrets – unsung heroes

NO legal advice provided!

IP Misconceptions

• IP is just for Tech Startups or Tech companies & Patents are the only IP for inventors

• Trade secrets are the easiest to protect because there is no registration.

• You can copy anything without a copyright ©

• You can copyright an idea.

• Domain = TM

• If I pay for it, I own it.

• Patents means right to make or sell

Strategies:ID & Protect IP

WHY WHO

WHAT

WHEN

WHERE

✔

WHO: IP Ownership Challenges

• Multiple Inventors• Who you are? Employee of another company• Proper Assignment of IP Rights – personal versus

company• Assume that Ownership automatically extends outside

the US

• Date of Idea/Invention (First to Invent First INVENTOR to file)

• Date of Use• Date of Filing• Date of Conversion• Renewals

WHEN: Key Dates to Remember

• Idea• URL• Name• Know how• Employees• Contractors

WHAT: Business Plan/Funding Presentation

Strategies to Protect IP

• Do it Yourself:– USPTO.gov– Copyright.gov

• Hire a Professional:– Attorney, Consultant, Legal Zoom, Rocket Lawyer

• Secrets:– Notary, IP Vault, Copyright software

PICK A PLATFORM

• REWARDS BASED:Kickstarter, Indiegogo, Rocket Hub How it works online!

• EQUITY BASED:Not yet legal Online Business Planning Required• OTHER:

Angel List, Lending Club, Georgia CF

REWARDS

CHOOSE THE BEST PLATFORM FOR YOU:

• ALL OR NOTHING• % BASED ON TYPE• BE REALISTIC

STEP 4: RAISE SOCIAL CAPTIAL

Success is directly related to Social Capital

Social Capital is more than Social Media

Quality not Quantity

CONTENT IS KING

Expert

Blogs

Speaking

Social Media

PR

Start working on this before you launch your campaign.

Case Study: Lessons Learned

What they do.

• Genetic Art– Ts– Portraits

• Channels– Obsessed pet

owner– Animal

organizations

Campaign attempt #1

Seriously?... Try again?

• Lessons learned• New plan of action• New cause• New business

opportunity

The new plan.

• Pre-Selling• HEAVY PR

– Social Presence– Local media

• Partnering• Get it in writing• New rewards structure• SCHEDULE

UPDATE

ONLINE

Campaign

Business Plan

Projections

`

STEP 5: CREATE PITCH

Ignorance is NOT a Defense

Be Careful:

Video

Copy

Business Plans

READ READ READ

Read License & Permission to Use

Check out Creative Commons

FINANCIAL Statements

< $100K – CEO

> $100K to < $500K Review

> $500K = AUDIT by ??????

Tax Returns

Capital structure

Ownership info

Devil in the Details

$XM Valuation/ $X per share price/ Total $XK

Spend: MAKE SELL OPERATE

$XK Now $XK $YK $ZK$XK Next $XK $YK $ZK$XK Then $XK $YK $ZK

Valuation Issues

Recent Venture beat article:

Employee Stock Options

Key Performance Indicators (KPIs)

10 Requirements

1. Registration & Incorporation in US2. Names – Directors, Officers, >20% SH3. Business Description & BUSINESS PLAN4. Prior years Tax Returns 5. Financial Statements6. Use of Proceeds7. Offering Details & Progress Updates8. Share price & methodology (VALUATION)9. Ownership & capital10. Capital (existing, offering & differences)

RESOURCES

• CfPA, CfIRA

• Crowdfundingroadmap.com Annual Oct 14th – 16th Convention & Bootcamp

• Crowdfundcast.com – podcast

• Getting Started with Crowdfunding Investing for Dummies in a Day

• Crowfunding Hatchery

• Traklight.com/IP Cloud – free resources & paid coaching

• Crowdbuilder by Leverage PR- in-depth publicity instruction, task and milestone management, to integrated calendars and media lists

• Incubators & Accelerators• Mentors• SBDC• SCORE• Startup America• Competitions• Angel Lists

• Resources: TRAKLIGHT IP CLOUD

Additional Help

Questions?

Mary Juetten

mejuetten@traklight.com

@traklight

IDENTIFY. PROTECT. SUCCEED.

www.traklight.com

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