The Crowdfunding Handbook: Raise Money for Your Small Business or Start-Up with Equity Funding Portals
Ever wish your company could raise capital the Kickstarter(R) 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. Now that the SEC has handed 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 The Crowdfunding Handbook, 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. IPOs are expensive, and venture capital nearly impossible to attract. Crowdfunding is changing the game for private companies . . . and this book will lead the way.
From the Back Cover Ready to finance your venture the Kickstarter way? With equity crowdfunding rules finalized by the Securities and Exchange Commission, the landmark 2012 JOBS Act has finally gone live, freeing small businesses to raise up to $1 million without a lengthy, expensive IPO process. For many start-up companies and entrepreneurs, the Regulation Crowdfunding rules mean better access to small investors, less red tape, more capital for launching companies, and faster growth--especially if you get in early and do it right. Legal and small business expert Cliff Ennico has followed the equity crowdfunding story since its inception. In The Crowdfunding Handbook , he explains the federal legislation and translates the 685-page SEC Regulation Crowdfunding document into a clear set of dos and don'ts, with targeted answers to all your questions: - Is crowdfunding my best bet for raising capital? - What types of securities should I offer, and how should I price them? - What's the best way to pitch a project to the public? - Which crowdfunding portal should I choose? - Which disclosure documents need to be filed? - What are my other legal requirements? - How can I set up my company to increase the odds of success? - Who are the most promising investors, and how do I reach them? - How do private securities offerings mix with crowdfunded options? - What are the intrastate offerings exemptions in my state? - How do I manage a crowd of investors and keep them happy? Equity crowdfunding moves beyond raising money for specific projects to offering stock, bonds, and other securities to nonaccredited investors--the next level in the friends and family model, and a projected game changer for the way private companies get capital. The Crowdfunding Handbook guides you safely and smoothly through this exciting new funding arena, while helping you avoid potential costly mistakes. Cliff Ennico, a former Wall Street lawyer, is a leading expert on the legal and financial issues of entrepreneurial companies. Previously the host of PBS's MoneyHunt, he now writes the nationally syndicated Succeeding in Your Business column as well as a legal Q&A column for Entrepreneur . He is the author of several books, including The eBay Seller's Tax and Legal Answer Book .