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Crowdfunding: A Guide to Raising Capital on the Internet

Book Description

A groundbreaking book on the growing trend of crowdfunding

Crowdfunding has gained considerable traction over the last few years. By combining the Internet/social media with equity-based financing, it is poised to usher in a new asset class that will change how early stage and small business financing transactions are consummated. Author Steven Dresner, Founder and CEO of Dealflow.com, understands the nuances of how crowdfunding can help companies gain much needed access to capital, and now he shares those insights with you.

Engaging and informative, this book will serve the needs of a global audience comprising entrepreneurs, financiers, and other professionals. It skillfully addresses the market dynamics that are catapulting crowdfunding into the mainstream and explores essential issues ranging from planning an online campaign, post-transaction management, and business planning to securities law and tax issues.

  • Puts the business of crowdfunding in perspective with a look at the current marketplace, overview of important data, and legitimate concerns

  • Examines effective techniques for communicating with the crowd

  • Details equity-based financing and other sources such as debt instruments

  • Contains contributions from a wide array of individuals involved in the worlds of finance, law and accounting, social media, marketing, as well as DealFlow Media's own staff

  • Crowdfunding affords-start ups and other smaller businesses better access to capital via the Internet/social media. It also allows an investor of any size to back a business of their choosing. This new book will show you what this process entails and how it can benefit everyone involved.

    Table of Contents

    1. Cover Page
    2. Title Page
    3. Copyright
    4. Dedication
    5. Contents
    6. Acknowledgments
    7. Introduction
    8. PART I: The Business of Crowdfunding
      1. CHAPTER 1: Crowdfunding: A Historical Perspective
        1. Crowdfunding Isn't New
        2. Why Crowdfunding Disappeared
        3. Regulation D, Sarbanes-Oxley, and Regulatory Reform
        4. The Modern Era
      2. CHAPTER 2: Understanding the “Crowd”
        1. Quality Entrepreneurs and Ideas
        2. Working on the Fundamentals for Crowdfunding: First Things First
        3. Finding a Solution, Filling a Need
        4. How Small Business Owners Can Prepare for Crowd Investing
        5. A Radically Transformed Environment
      3. CHAPTER 3: A Statistical View of Crowdfunding
        1. The Marketplace
        2. Crowdfunding Models
        3. The Market Outlook
      4. CHAPTER 4: Current Market Dynamics
        1. Rewards-Based Crowdfunding
        2. Investment Crowdfunding
        3. Charity/Donation Crowdfunding
        4. Niche Crowdfunding Platforms
        5. Market Testing with Rewards-Based Crowdfunding
        6. Broker-Dealers Entering the “Accredited” Crowdfunding Space
        7. Crowdfunding as a Political Tool
        8. Fraud in Noninvestment Crowdfunding
        9. No Fraud in Investment Crowdfunding? (Not Yet at Least)
        10. Additional Resources
    9. PART II: Preparing for Your Crowdfunding Campaign
      1. CHAPTER 5: Business Planning in Preparation for a Crowdfunding Campaign
        1. Writing a Business Plan Disclosure Document
        2. Basic Information
        3. Description of the Business
        4. Description of Financial Condition
        5. Use of Proceeds and Offering Amount
        6. Valuing Your Company: Pricing Securities and Understanding Capital Structure
        7. Reviewed versus Audited Financial Statements
        8. Budgeting, Projections, and Forecasting
        9. Conclusion
      2. CHAPTER 6: Protecting Your Intellectual Property
        1. The Importance of Protecting IP on Crowdfunding Platforms
        2. Patents: Protecting Ideas
        3. Copyright: Protection of Creative Works
        4. Trademark: Designations of Source or Origin
        5. Trade Secret Protection
        6. IP Portfolio Management: A Best Practice
      3. CHAPTER 7: Understanding Your Investor Options
        1. The Decision to Bring on Investors
        2. General Obligations to Investors
        3. Investor Education Obligations
        4. Maximizing Investor Participation
        5. Capital Spectrum
      4. CHAPTER 8: Communicating with Your Investors or “Backers”
        1. The Issuer's Dilemma
        2. Reconnecting with Prospective Investors and Backers
        3. Investor Relations: Are You Ready to Walk Down the Aisle?
        4. Crowd Communications Checklist
      5. CHAPTER 9: Alternatives to Crowdfunding
        1. Basic Types of Finance
        2. Choice of Entity
        3. Overview of Securities Laws
        4. Private Placements and Regulation D
        5. Initial Public Offerings
        6. Small Business Administration Loans
        7. Other Sources of Capital
        8. A Note Regarding Finders and Business Brokers
    10. PART III: Understanding the Framework of Rules and Regulations
      1. CHAPTER 10: The Legal Aspects of Crowdfunding and U.S. Law
        1. Crowdfunding and Securities Regulation
        2. Crowdfunding Interests in Business Associations
        3. Contracts in Crowdfunding
        4. Other Potential Legal Issues
        5. Conclusion
      2. CHAPTER 11: Crowdfunding Laws Based on Global Jurisdiction
        1. The Emergence of Equity Investing in Europe
        2. Where Investing Emerges, Regulation Follows
        3. Crowdfunding Is Born in Europe
        4. European Platforms in Practice
        5. Looking Ahead
      3. CHAPTER 12: Living with the New Reg D and Its Impact on Pitch Events and Demo Days
        1. Key Securities Law Concepts
        2. Structuring Your Event
    11. Afterword
    12. About the Author
    13. About the Contributors
    14. Author's Disclaimer
    15. Index