The Crowdfunding Handbook: Raise Money for Your Small Business or Start-Up with Equity Funding Portals, 1st Edition

  • Cliff Ennico
  • Published By:
  • ISBN-10: 0814433618
  • ISBN-13: 9780814433614
  • DDC: 658.15
  • Grade Level Range: College Freshman - College Senior
  • 288 Pages | eBook
  • Original Copyright 2016 | Published/Released June 2017
  • This publication's content originally published in print form: 2016

  • Price:  Sign in for price



Ever wish your company could raise capital the Kickstarter® way? Equity crowdfunding is finally here, opening new funding avenues for small businesses and start-ups. In April 2012, President Obama signed the Jumpstart Our Business Startups—or JOBS—Act into law. This groundbreaking legislation empowers privately-owned companies to raise capital from investors without going through the rigorous IPO and private placement processes. When the SEC hands down the last regulations, the floodgates will open and companies will be free to compete for funding.

Small business and legal expert Cliff Ennico has followed the equity crowdfunding story since its inception. Now, in this guide, he explains the JOBS Act and translates the regulations into a clear set of do’s and don’ts for entrepreneurs and small-business owners looking to get in early—and do things right. Need help pricing your securities? Pitching a project to the public? Choosing between funding platforms? Figuring out disclosure documents and reporting requirements? This book delivers targeted answers—whether crowdfunding is your best bet, picking the right legal entity, selecting types of securities to offer, reaching the most promising investors, keeping crowds under control, and more.

Table of Contents

Front Cover.
Half Title Page.
Title Page.
Limit of Liability / Disclaimer of Warranty.
The Road Map: Where to Find Detailed Discussion of Regulation Crowdfunding.
The Basics of Crowdfunding.
1: What Is Crowdfunding?.
2: The Evolution of Crowdfunding.
Launching a Successful Title III Crowdfunded Offering, Step by Step.
3: Is Crowdfunding Right for Your Company?.
4: Preparing Your Company for a Crowdfunded Offering.
5: Launching Your Crowdfunded Offering.
6: Managing and Marketing Your Crowdfunded Offering.
7: After Your Successful Crowdfunded Offering Is Completed.
Communicating with Your Crowd.
8: Keeping Your Crowd Under Control.
9: Going Back for Seconds: Launching Multiple Crowdfunded Offerings.
Considerations for Investing in a Crowdfunded Offering or Setting Up a Funding Portal.
10: Should You Invest in a Crowdfunded Offering?.
11: Should You Set Up a Funding Portal?.
Background Essentials: Crowdfunding History, Law, and Regulations.
12: Federal Regulation of Private Offerings of Securities Prior to the JOBS Act.
13: The JOBS Act and Regulation Crowdfunding Rules.
Afterword: What the Author Really Thinks of Crowdfunding.
Appendix 1: Form C.
Appendix 2: Optional Question & Answer Format for an Offering Statement.
Appendix 3: Amended and Restated Certificate of Incorporation Creating Classes of Voting and Nonvoting Common Stock and Convertible Preferred Stock [Delaware form].
Appendix 4: Provision of LLC Operating Agreement Creating Classes of Voting and Nonvoting Membership Interest, with Nonvoting Preferred Interests.
Appendix 5: Some Rights of Shareholders Under State Corporation Laws.
Appendix 6: Term Sheet for Crowdfunded Offering of Debt Securities.
Appendix 7: Term Sheet for Crowdfunded Offering of Series B (Nonvoting) Preferred Shares in Corporation.
Appendix 8: Term Sheet for Crowdfunded Offering of Class B (Nonvoting) Membership Interests in a Limited Liability Company.
Appendix 9: Sample Risk-Factors Section of a Crowdfunded Offering Statement.
Appendix 10: Sample Accredited Investor Questionnaire.
Suggestions for Further Reading.
About the Author.
Copyright Page.