This document provides tips on maximizing the benefits of recent legal changes that allow for general solicitation when raising funds from investors. The Jumpstart Our Business Startups (JOBS) Act now permits businesses to openly market private investment opportunities to accredited investors. Key points covered include how to effectively create and share an investment pitch online, establishing credibility, building an initial customer base through reward/demo crowdfunding, and differentiating your business from competitors. Access to the Wazgo platform and consulting services is also offered to help optimize investment offerings before seeking crowdfunding or private investors.
9. JOBS Act!
•Biggest change to investor law in our
lifetime.
•Market your investment, Get
accredited investor for your business.
(AKA “General Solicitation”)
10. Goal for Today:
Learn How You Can Maximize
the Benefits of the New Legal
Changes for Getting Investors for
your business or cause.
11. BONUS:
I’ll give you access to free tools
to help you succeed when you
are ready
Wazgo.com
13. Karla De Leon, President- Wazgo
UC Berkeley
US Dept of State
Masters:
Cornell
University
United
Nations: FAO
Business
Finance
Store
JOBS Act
Crowdfunding
Consultant
Wazgo
The Great Timeline of De Leon
14. What is Crowdfunding?
•Debt: (Prosper.com)
•Reward: (Kickstarter, Indiegogo)
•Equity: (Title III coming soon, Title II
Crowdfunding for Accredited Investors)
17. Shark Tank is NOT Real Life
•Venture Capital: Everyone wants VCs but…
•Only invest is mega-growth companies.
•$50 million in 5 years.
•They turn down 99% of the pitches they see.
•Typically require extensive previous success.
•Can take your business away at any moment.
18. You Want Private Investors
•Fund 30 times as many deals as VC’s each year
•Great private investors as individuals “Whales”
•Can be more difficult in groups “Killer Whales”
19. The Old Private Placement
• You sell partial ownership of your business via a PPM
(Private Placement Memorandum)
• Typically costs over $20,000 to create
• Mostly “accredited investors” (35 non-accredited)
• No Marketing Your Investment Offering
• Must have a previous substantive business
relationship with investors
24. JOBS Act: The NEW Private Placement
•You still need a PPM to get investors BUT
•You can reach more people
•You won’t be blocked by a group of
cronies
•You can market your offering
•Great opportunities for social business
25. The NEW Private Placement
•You can market your investment
offering to everyone
•All your investors MUST be accredited
investors
•You must take steps to verify they are
accredited
•Proposed Regulations…
27. You can go viral!
•The internet lets you reach more people
•Get Creative
•Use all your marketing resources
28. You have to be awesome!
•Investors aren’t sitting there waiting to
throw money at you
•Trust through visuals
•Get a step ahead of the competition with
Wazgo
29. Don’t Forget Crowdfunding
•Crowdfunding is a great stepping stone
to getting private investors.
•Proof people want your business. No
one wants to be the first one on the
dance floor!
30.
31. Reward Crowdfunding is a great 1st step!
•Great way to test your market and get
proof of concept
•Money you don’t have to pay back
•Don’t worry about legal issues
•Show future investors other people
believe in you
32. One Thing is True…
• Getting crowdfunded and getting private
investors is hard work.
• There’s a lot of competition. Have you seen
Kickstarter lately? Angelist?
• Make sure your pitch is AMAZING.
35. Pitch Fire Code #1
•Have A Clear Goal & Purpose
“Do I Understand It?”
•Have an Elevator Pitch
•Practice & Get Feedback
•Example: Who Gives a Crap
36.
37. Pitch Fire Code #2
•Establish Your Credibility
“Do I Believe It?”
•Sell Yourself First
•Show Social Proof
•Facebook, Blogs, Fans
•Example: Holidazed Cookbook
38.
39. Pitch Fire Code #3
•Build Something…
“Do I Want It?”
•Samples, Demos, Mockups, Test Users…
•The More You Have The More You’ll Get
•Example: Brownies
40.
41. Pitch Fire Code #4
•Be Different – Clearly Show How
“Can I Get It Anywhere Else?”
•You can’t be everything to everyone
•Show what you DO and what you DON’T do
•Example: Activyst
42.
43. Pitch Fire Code Recap
1. Have A Clear Goal & Purpose
2. Establish Your Credibility
3. Build Something
4. Be Different and Show How
45. Wazgo.com
• Free platform - helps you coordinate with
investors and tune your offering before going
live with crowdfunding or private investors
• We also offer consulting services to assist you:
• Phone-A-Friend: Phone consultation
• 50 / 50 : We split the work
• Full Service: We do almost everything
46. Learn to Fish
•Forget the 45 Day Faceplant
•Most sites have you flame out in 30 days
•Make your 1 year plan where you succeed!
•People listen when you’re not asking for money
•You can always launch sooner
•Delays reduce your credibility