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Sources of Working Capital1Agenda

Customary Methods Basic Types Considerations

New Method What is it? Overview Comparisons How does it Work? Basic Types Requirements Examples Sources

2Customary Methods Equity Financing

Debt Financing

3Considerations Equity Financing Equity Partners Controlling Interest Shareholders Company Ownership

Debt Financing loans Collateral Debt service payments4New Methods Uses Social Networks Virtual process Universal appeal (national and international)

Crowdfunding, or Crowdsourcing5CrowdfundingWhat is it?

Similar to pier-to-pier lending, but you do not know the other individual

Someone gives you money with no obligation on your part to pay it back!

The supporting community is asked to support the project

6OverviewA Million High Fives, the largest electronic supply and volunteer drive in America. Out-founded by Crowfunding by a 3:1 ratio over the past three years.

Has been around for at least six years, gaining in popularity exponentially.

Many new facilities have surpassed $10M funding in first year of operation

At least 11 reputable sites

Over $20B successfully funded in the past eight years

7Traditional vs. CrowfundingRequirementsTraditionalCrowdfundingComprehensive Business PlanYesNo

Sources

Uses8Traditional vs. CrowfundingRequirementsTraditionalCrowdfundingComprehensive Business PlanYesNoFinancial Forecasts & Pro FormaYesNo9Traditional vs. CrowfundingRequirementsTraditionalCrowdfundingComprehensive Business PlanYesNoFinancial Forecasts & Pro FormaYesNoCollateral / Guarantees / PledgesYesNo10Traditional vs. CrowfundingRequirementsTraditionalCrowdfundingComprehensive Business PlanYesNoFinancial Forecasts & Pro FormaYesNoCollateral / Guarantees / PledgesYesNoCredit / SolvencyYesNo11Traditional vs. CrowfundingRequirementsTraditionalCrowdfundingComprehensive Business PlanYesNoFinancial Forecasts & Pro FormaYesNoCollateral / Guarantees / PledgesYesNoCredit / SolvencyYesNoDown payment or own-fundsYesNo12Traditional vs. CrowfundingRequirementsTraditionalCrowdfundingComprehensive Business PlanYesNoFinancial Forecasts & Pro FormaYesNoCollateral / Guarantees / PledgesYesNoCredit / SolvencyYesNoDown payment or own-fundsYesNoEquity position / Controlling interestYesNo13Traditional vs. CrowfundingRequirementsTraditionalCrowdfundingComprehensive Business PlanYesNoFinancial Forecasts & Pro FormaYesNoCollateral / Guarantees / PledgesYesNoCredit / SolvencyYesNoDown payment or own-fundsYesNoEquity position / Controlling interestYesNoInvestor buy-outYesNo14Traditional vs. CrowfundingRequirementsTraditionalCrowdfundingComprehensive Business PlanYesNoFinancial Forecasts & Pro FormaYesNoCollateral / Guarantees / PledgesYesNoCredit / SolvencyYesNoDown payment or own-fundsYesNoEquity position / Controlling interestYesNoInvestor buy-outYesNo Business synopsisNoYes15Traditional vs. CrowfundingRequirementsTraditionalCrowdfundingComprehensive Business PlanYesNoFinancial Forecasts & Pro FormaYesNoCollateral / Guarantees / PledgesYesNoCredit / SolvencyYesNoDown payment or own-fundsYesNoEquity position / Controlling interestYesNoInvestor buy-outYesNo Business synopsisNoYes Revenue SharingNoYes16Mr. Entrepreneur .

Sources

Uses17How does it Work?Publish a project

Does not require comprehensive Business Plan

Establish $$$ needed, and timeline

Offer reward

Collect funds meeting or exceeding targetAn Assurance Contract returns contributions 18Why it Works Voluntary Contribution based on project support

Reward Driven or Revenue sharing no need to release financials

Multiple uses

Integral part of social commerce19Basic TypesProject BasedDefinitive start & end periodMusic, Films, books, fund raising, construction, exploration, trips, research, etc

EnterpriseStart-upsOperationsProduct development and roll-outWorking capital20

Basic RequirementsProject RewardsSpecial offers (no discounts)Limited offerings

Enterprise Revenue sharing

21ExamplesKickstarter.com22

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29ExamplesWickedStart.com30

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32ExposureAt least one (1) Tweet every ten minutes on projects

Facebook universe

LinkedIn groups

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34Partial ListRockethub.comProfounder.comPeerbackers.comKickstarter.comIndiegogo.com => for film or music industryQuirky.com => for inventorsInvested.in.com

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