Equity Crowdfunding Event in Chicago

Equity Crowdfunding Event in Chicago (Local Investors Event)

Hi, I’m Ludell and I’m the Marketing Director of an educational publishing company called Eazl. Our channel has all kinds of interesting things, from weekly Brain Boosts (to keep you informed on all things business, marketing, and the labor market) and free mini courses to 20 min. travel shows and interviews with industry experts. On my vlog playlist, you’ll find videos about my day to day marketing experiences and I’ll show you what it’s like to be me -a marketer and entrepreneur. I’m also curious to learn about your own experiences.

LOCATIONS MENTIONED
mHUB

CONTENT MENTIONED
Career Hacking Masterclass
Advanced Management Training
Guerrilla Marketing Book

MUSIC
CGI Snake by Chris Zabriskie is licensed under a Creative Commons Attribution license (https://creativecommons.org/licenses/by/4.0/)
Source: http://chriszabriskie.com/divider/ Artist: http://chriszabriskie.com/

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If you’re reading this and have been paying attention to equity crowdfunding, I’d love to know your thoughts on it.

Thanks for watching!

How Supporters Get Money from Community Owned Businesses

☆ Learn how Eazl is organizing communities with equity crowdfunding at or join the Facebook group at ☆

Part 1 of 4 in the Community Owned Business Series
Community Owned Businesses (COBs) are funded and partially owned by neighbors and other people who support the launch of a small business through an equity crowdfunding campaign.

What’s Equity Crowdfunding?
Equity crowdfunding is like Kickstarter but instead of a reward, supporters get a small ownership piece in the campaigns they support. Learn the basics of equity crowdfunding here.

The Community Percentage
Community Owned Businesses operate with one slight difference to other small businesses: a small percentage of gross revenue is diverted into a community dividend pool. For example, if Joe’s community owned coffee shop gets $90,000 in sales over a 3 month period, his business might have agreed to put 2% of those sales or $1,800 into a dividend fund for the business’ supporters.

Ongoing Money to Supporters
Supporters of community owned businesses receive a proportional amount of the community dividend pool as a check from the businesses they support on a semi regular basis. For example, if you put $500 into a campaign that raised $20,000 to launch a new small business, you might receive $45 every three months as a dividend for your support.

Learn how you can get involved in the community owned business movement here and stay tuned for the other three parts of this four-part series:
Part 2: How to Turn Supporters into Advocates
Part 3: How to Sell a Small Business with Equity Crowdfunding
Part 4: Community Owned Businesses as a New Asset Class

Subscribe to Eazl here

Interact with the Eazl community:
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Using Equity Crowdfunding to Launch Small Businesses

Despite all the hype about startups and disruption, entrepreneurship is actually on the DECLINE. Here’s how we can fix that.

The Problem: Entrepreneurship is on the decline. See the non-partisan Economic Innovation Group’s report with some dramatic statistics on the subject.

The Funding Gap: On a recent fundraising trip to Silicon Valley, Eazl’s founders realized that part of the problem is that most angel investors and VCs want to invest in the next Facebook or Snapchat. But where does that leave startups that only need $30,000 to launch a grow into a solid business?

The Solution: Equity Crowdfunding, a new financial technology, would enable people in the community to own a small piece of local businesses, to get dividend payments from those businesses, to increase their property values, and to provide local job opportunities. See how this technology works in a short, free mini-course from Eazl:

Our team at Eazl is building this movement. If you’re interested in participating send us an email at care@eazl.co.

Subscribe to Eazl here.

Interact with the Eazl community:
Facebook
Twitter
Instagram

Equity Crowdfunding: The Transformative Financial Innovation

Learning the basics of equity crowdfunding or crowdfund investing (CFI) puts a very powerful tool into your hands. CFI’s use cases may include startup funding, small business “mini-IPOs”, and internet-based fundraising for larger projects. Opportunities for consultants, entrepreneurs, and investors in this space are likely to increase exponentially over the next 10 years.

In this free training, you’ll start by learning the basics of crowdfund investing, then move on to how this financial innovation can fit into a business’ financial lifecycle. Then, you’ll learn the basics of securities as they apply to crowdfund investing, including how equities, bonds, and profit-sharing arrangements work under this model.

Next, you’ll learn how funding portals work and how businesses need to approach discussing financial information during these transactions. We’ll wrap up with a look at some of the socioeconomic impacts of the new law and access to additional resources.

Check out the full training here.

Is a Shortage of Ideas Dimming Equity Crowdfunding in the US?

In this week’s Brain Boost: Is a Shortage of Ideas Dimming Equity Crowdfunding in the US?

Equity crowdfunding, as you might know, enables entrepreneurs to sell micro investments into their companies online. This new legal financial technology went live in May of this year and, in the United States, a lot of people are very excited about it.

For example, here at Eazl, we’ve seen huge interest in our free equity Crowdfunding 101 course, but entrepreneurs seem a little bit nervous to use online fundraising to sell micro shares in their ventures. This summer, data shows that only 82 startups in the United States filed the paperwork necessary to use equity crowdfunding to fund their ideas.

Interestingly, one platform —Wefunder— seems to be absolutely dominating the market. An internal email that they sent me showed that they facilitated over 90% of the successful equity crowdfunding investments in the United States this summer.

I used Wefunder to invest $100 into Voodoo Spirits, a distiller that my friend Jake –an American– runs in Benin, Africa. Speaking of booze, investors are funding booze related companies more than companies from any other industry.

Data collected by my friends at Crowdfund Capital Advisors showed that whiletechnology companies launched the most projects this summer, alcohol related projects received the most capital commitments. You can see this data for yourself here.

If you’re interested, check out our free crowdfund investing course. It’s short and fun and you can find a link to enroll here.

I’ll see you next Friday at 10 a.m. Pacific Time for another Brain Boost.

Shortage of Ideas Dims Launch of Equity Crowdfunding in the US

equity crowdfunding

Shortage of Ideas Dims Launch of Equity Crowdfunding in the US
While the United States is known, worldwide, as the home of disruptive ideas, few entrepreneurs are taking advantage of the new equity crowdfunding laws. In May of this year, the SEC finalized the rules associated with Title III of the JOBS Act, which now allows online fundraising platforms to facilitate micro investments into startups via the web. What makes Title III special is that it enables anyone–not just accredited investors–to make investments into startups (generally considered an especially risky asset class). While our online education company, Eazl, has seen massive interest in the free Equity Crowdfunding 101 video course that we offer, entrepreneurs seem to be hesitating to take the leap into raising funds via equity crowdfunding. However, the equity crowdfunding world is seeing some green shoots.

People Love Boozy Projects
My friend Woodie Neiss at Crowdfund Capital Advisors collected some data on the first quarter that equity crowdfunding has been live in the United States, and they’ve found that only 82 startups filed paperwork with the SEC to enable them to raise funds using the new tools legalized by Title III. For those 82 projects, a total of $7.2mm has been committed with the average capital commitment by an individual backer at $810. Interestingly, while there were only 9 alcohol-related startups that raised money with Title III this summer, these projects raised over $2mm–more than any other industry. Personally, I invested in Voodoo Spirits, a company led by Jake Muhleman that makes and imports a popular, exotic spirit from Benin.

California, Texas, and Massachusetts Way Ahead
People from three states–California, Texas, and Massachusetts— have
invested far more than those from any other states. Californians committed nearly $2.7mm to Title III projects this summer while Texans and Bay Staters committed $1.8 and $1.2mm, respectively. After these three states, Ohioans were next at  $360k. Californians, by far, posted the most projects for funding, followed by New Yorkers.

Single Fundraising Community is Dominating the Marketplace
For business nerds, perhaps the most interesting news about equity crowdfunding is that a single platform, WeFunder, is dominating the market. WeFunder reported that 91% of the Title III the investors who have backed successful projects this summer did so on WeFunder. In a far distant 2nd place, NextSeed received 5% of the successful investments.

People are Awesome: Entrepreneurs Edition

In this week’s Brain Boost: people are awesome. I’m going to highlight a civic chatbot, a distiller in Africa, and the head of Tesla Motors.

A Civic Chatbot
I met Andy and Sean at EazlLive events in Chicago. This week, the team released a chatbot on Facebook Messenger that enables you to chat with all the major US presidential candidates. For example, you can chat with Gary Johnson about Libertarianism or with Donald Trump about why he wants to build a wall.

Check out the messenger bot here and keep an eye out for an upcoming course with Andy about building a 12-month growth plan for your business.

A Distiller in Africa
Jake and I did our MBAs together and, after we graduated, Jake took the path less traveled. He moved to Benin -one of the poorest countries in the world- and started distilling Sodebe, a liqueur made from fruits and spices harvested sustainably and locally in Benin.

Today, Jake’s project is one of the first projects to raise funding using equity crowdfunding in the US and I am definitely going to invest. They just won a silver medal at a tasting competition in San Francisco and Jake and his team are super smart.

This is a good bet and I am not getting paid to say that.

The Head of Tesla Motors
I would highly suggest reading Elon Musk’s Master Plan Part Deux. One thing that is striking about it is the clarity of thought that Elon Musk has regarding the development of Tesla, the merging of Tesla and Solar City, and his bold vision of the future.

The leaders of today are not all about money. Instead, money is a resource to be deployed to do stuff that matters.

Check out the Master Plan Part Deaux here. I think it is required reading for all smart professionals.

The future belongs to makers.


If you like this video, enroll in our
free 25-minute course on getting started as an entrepreneur. It’s free, short, and fun. You’ll learn how to select a launch audience, perform interviews with a target market, and distill down customer needs.

I will see you next week for another Brain Boost.

 

Equity Crowdfunding Now Live in the US + free course

With the legalization of equity crowdfunding in the US, small businesses now have an easier, less risky way to raise capital. Allowing private companies to raise funds up to certain amounts from individuals without sacrificing creative control, this new law gives entrepreneurs another option to get much needed funding in the early stages of starting a business.

We created a course so you can get the 101 on how this new, exciting fundraising method works (see above).

Learn about this transformative financial technology that just legalized in the US (May of 2016) and everything you need to be in the know about crowdfund investing (sometimes called Equity Crowdfunding).

Build the vocabulary, rules, and use cases of crowdfund investing in 25 minutes.

  • Why startup / small business investing via the internet is transformative
  • How crowdfund investing and crowdfunding (e.g. Kickstarter) are completely different
  • What the law allows for entrepreneurs, investors, and funding portals
  • Where business and social change fits into this equation

Big opportunities to be early to the game

Learning the basics of crowdfund investing (CFI) puts a very powerful tool into your hands. CFI’s use cases may include startup funding, small business “mini-IPOs”, and internet-based fundraising for larger projects. Opportunities for consultants, entrepreneurs, and investors in this space are likely to increase exponentially over the next 10 years.

Content and Overview

You’ll start by learning the basics of crowdfund investing, then move on to how this financial innovation can fit into a business’ financial lifecycle. Then, you’ll learn the basics of securities as they apply to crowdfund investing, including how equities, bonds, and profit-sharing arrangements work under this model. Next, you’ll learn how funding portals work and how businesses need to approach discussing financial information during these transactions. We’ll wrap up with a look at some of the socioeconomic impacts of the new law and access to additional resources.