crowdfunding and community investment · also advisors, attorneys, accountants, financial advisors,...
TRANSCRIPT
Crowdfunding and Community InvestmentUsing Local Money to Implement Local Projects
MML UP Summit
June 1, 2017
Angela Barbash, RevalueLuke Forrest, MML
Why is this a conversation?
But first…
Activation of local capital
Aggregation of local capital
Local investment of local capital
Now, why?
Historical context
Local economies
Economic evolution
Regional influence
Global influence
Global competition
Loss of control
Let’s talk Michigan…
And the BIG why?
SURVIVAL.
What are we talking about?
Two major buckets
Not Investment-based
Donation Pre-sale
Investment-based
Debt Equity
Examples
$250,000 $850,000
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
Examples
$97,000 $25,000
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
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
99%
$7,299,093
5,362,639
1,000,000+
3.5
How is it done?
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.
Platforms
Strategies
Preferred Equity
$2,500 Minimum
All Investors
Revenue Share
$500 Minimum
All Investors
Platforms*
Strategies
PSCP Match
289 Backers
10 Perks
81 Backers
14 Perks
Break time!
Mock Scenario Setup
Report Out & Debrief
Before…
After…
Total of 33States implemented intrastate crowdfunding measures + 7pending
Before…
After…
Total of 51Cities in Michigan participate in PSCP
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)