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.

Table of Contents

PART 1 THE BASICS OF CROWDFUNDING
Chapter 1. What Is Crowdfunding?
Chapter 2. The Evolution of Crowdfunding

PART 2 LAUNCHING A SUCCESSFUL TITLE III CROWDFUNDED OFFERING, STEP BY STEP
Chapter 3. Is Crowdfunding Right for Your Company?
Chapter 4. Preparing Your Company for a Crowdfunded Offering
Chapter 5. Launching Your Crowdfunded Offering
Chapter 6. Managing and Marketing Your Crowdfunded Offering
Chapter 7. After Your Successful Crowdfunded Offering Is Completed

PART 3 COMMUNICATING WITH YOUR CROWD
Chapter 8. Keeping Your Crowd Under Control
Chapter 9. Going Back for Seconds: Launching Multiple Crowdfunded Offerings

PART 4 CONSIDERATIONS FOR INVESTING IN A CROWDFUNDED OFFERING OR SETTING UP A FUNDING PORTAL
Chapter 10. Should You Invest in a Crowdfunded Offering?
Chapter 11. Should You Set Up a Funding Portal?

PART 5 BACKGROUND ESSENTIALS: CROWDFUNDING HISTORY, LAW, AND REGULATIONS
Chapter 12. Federal Regulation of Private Offerings of Securities Prior to the JOBS Act
Chapter 13. The JOBS Act and Regulation Crowdfunding Rules

APPENDIX 1: SEC Form C
APPENDIX 2: Optional Question-and-Answer Format Version of SEC Form C
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