overview ofoverview of cav campaign 1 updated: october 15, 2012
TRANSCRIPT
Overview of
CAV Campaign
1
Updated: October 15, 2012
Contents2
What is the CAV Campaign? 3
Overview of Crowdfunding 4 - 10 Overview of CAV Program 11 - 19Contact Info
20NOTE ABOUT IDENTIFIED CAV PARTNERS
There are many companies and NGOs looking to get involved in CAV by providing services or capital. The ones identified here by name and/or logo (other than the NLCFA which is fully committed) have expressed their strong desire to be associated, though their actual role is still being discussed. Their inclusion here is not a guarantee of their eventual involvement, but is indicative of their current support.
What is the CAV Campaign?3
• Program for financially and psychologically helping Iraq and Afghanistan War Veterans (and their families) (together referred to as “Vets”), by giving them opportunity to receive needed funding through crowdfunding.
• An ideal manner for American civilians to say ‘thank you’ to Vets directly and effectively (and get introduced to crowdfunding).
• Provides dignified and honorable method for Vets to seek and receive the funding they need for anything from small business launches to handicap equipment for their home, to basic living expenses.
• Modern method for training Vets (through partner organizations) for launching businesses (creating jobs for themselves and others) and generating their own income (for those seeking $ for such purposes)
• Utilizes reward-based crowdfunding at first, while building more complex program for equity crowdfunding once that becomes viable (mid-2013).
An Introduction to Reward and Equity Crowdfunding
crowdfundingfirst, an introduction to
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www.NLCFA.org
donation/reward crowdfunding5
WHAT IS IT?• Online process for receiving
funding for projects, products, programs
• Money giver gets either nothing in return or a give-away, or a promise for a reward or benefit eventually (product being made, tickets to the film, etc.)
source: fundinglaunchpad.com
source: fundinglaunchpad.com
TM
TM
investment or equity crowdfunding6
WHAT IS IT?• New law permits entrepreneurs to raise
up to $1M in any 12 month period.
WHO CAN INVEST?• Anyone (accredited or unaccredited)• If unaccredited, limit is $2K to $100K in 12
mo, based on net worth/income
WHEN WILL IT BE EFFECTIVE?• Waiting on SEC and FINRA – 2nd Q 2013
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basic equity crowdfunding
CROWD
ENTR
EPRE
NEU
R
ONLINE PORTAL
ESCROW AGENT
TRANSFER AGENT
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4
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1
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1. Entrepreneur posts business plan and Equity Offer on registered investment crowdfunding Portal for limited time.
2. Crowd sees Offer on Portal and evaluates it.3. Crowd pledges to invest in Offer (funds transfer to Escrow Agent).4. If Offer is fully pledged in time, funds are transferred to Entrepreneur (less fees
for Portal, etc.) If not fully pledged in time, Escrow Agent returns pledged funds to Crowd.
5. Entrepreneur transfers stock to Crowd through a Transfer Agent.6. Entrepreneur continues to report to Crowd Shareholders.
rapid growth of crowdfunding8
source: fundinglaunchpad.com
now waiting forthe landscape transformers
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GENERAL SOLICITATION of Accredited Investors• First date: July 4, 2012• Delayed until?• December 2012 (most likely)
CROWDFUNDING• 270 days comes to January 1, 2013• More likely March 1, 2013• Best guess: 2nd Quarter 2013• SEC regulations• FINRA licensing rules
basic rules for entrepreneurs10
① START WITH REWARD CROWDFUNDING currently available no regulation unlimited purposes limited coaching required will continue after Equity CF is launched most likely for amounts less than $100K small business start-ups to handicap-rigged vans could create lender opportunities Americans can engage now in small amounts each Some corporate sponsors can give the ‘rewards’ to the crowd
② THEN MOVE TO EQUITY CROWDFUNDING July, 2013 earliest allows for true capital investments to launch businesses allows for much larger lender participation Americans can invest in the actual business of the veterans regulated and more complex, though still doable months of reward-based veteran crowdfunding will help
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Crowdfunding American Veterans
REWARD ENGINE ELEMENTS(for Reward CF, these are provided on an stand-by, non-required basis)
① VETERANS PROGRAMS Existing Reintegration Counseling
② SERVICE Rotary Other
③ BUSINESS ASSISTANCE SCORE Legal/Accounting Marketing
④ CF PRO CF specialist (CCA) Team of volunteers
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Veterans Reward Crowdfunding
REWARD ENGINE IN ACTION
VET shares idea with team on ENGINE and continues feedback and modifications as services are received VET
ENGINE elements provide services, counsel, assistance to VET prior to sending VET to Portal
Veteran with small business or personal need comes to ENGINE
VET
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Veterans Reward Crowdfunding
STANDARD REWARD CROWDFUND LISTING PROCESS1. Upon completion of ENGINE’s work, VET advances to 3rd Party Portal.2. Portal displays VET’s Offering in CAV WINDOW for duration of offering.3. Other VET offerings are also displayed in VET WINDOW by same or other
3rd Party Portals, which get the offerings from same ENGINE.
Veterans Reward Crowdfunding
ENGINE
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CROWD
ENGINE
STANDARD REWARD FUNDING PROCESSadvertising of Offering to CROWD$ funding via normal CFDist % $ to ENGINE & WINDOW
Reward to Participating Crowd
VET
Veterans Reward Crowdfunding 15
EQUITY ENGINE ELEMENTS(for Equity CF, these are provided on an stand-by, non-required basis)
① VETERANS PROGRAMS Existing Reintegration Counseling
② BANK Community Pier-to-pier CF lender
③ BUSINESS ASSISTANCE SCORE Legal/Accounting Marketing
④ CF PRO CF specialist (CCA) Team of volunteers
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Veterans Equity Crowdfunding
EQUITY ENGINE IN ACTION
VET shares idea with team on ENGINE and continues feedback and modifications as services are received
BANK
VET PROG
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1 VET
BIZ ASSIST
CF PRO
ENGINE Elements provide services, counsel, guaranteed loans to VET prior to sending VET to Portal
Business or Start-Up (owned by a Iraq or Afghanistan Veteran) comes to ENGINE
VET
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Veterans Equity Crowdfunding
STANDARD EQUITY CROWDFUND LISTING PROCESS1. Upon completion of ENGINE’s work, VET advances to 3rd Party Portal.2. Portal displays VET’s Offering in CAV WINDOW for duration of offering.3. Other VET offerings are also displayed in VET WINDOW by same or other
3rd Party Portals, which get the offerings from same ENGINE.
Veterans Equity Crowdfunding
ENGINE
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STANDARDFUNDING PROCESS
advertising of CAV WINDOWadvertising of VET’s Offering$ funding via normal CF$ funding via CAV FUNDHC dist % $ to ENGINE &
WINDOWVET issues stock via HCHC manages stock for CROWD
CROWD
ENGINE
VET
Veterans Equity Crowdfunding 19
Overview of Software Design20
Now isthe Time
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For more information:
David MarlettExecutive DirectorNATIONAL CROWDFUNDING ASSOCIATIONwww.NLCFA.org [email protected]
www.NLCFA.org