Crowdfunding 101

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There are four types of Crowdfunding.

  1. Donation based – people make donations based on the good feeling of helping others.. Indiegogo is a very popular site to raise funds for movies, write books, pay off student loans and a number of worthy causes.
  2. Rewards Based – Investors receive anywhere from just a thank you note to a brand new product. Kickstarter is normally the site people think of for this type of crowdfunding.
  3. Lending Based – Usually a few thousand dollars and a favorable alternative to banks. Prosper is a site where people can invest or borrow personal loans at competitive rates.
  4. Equity Based – Individuals invest their money in exchange for ownership. Early Shares is a great site for information on Equity based crowdfunding.

The first three are quite prevalent but Equity Based portals can’t start selling equity direct to the public yet.

The JOBS Act of 2012  made major changes to our securities laws that have been in effect for 80 years such that transactions of $1 million or less involving the offer of sale through a broker or funding portal are exempt from certain registration requirements and prohibitions related to interstate commerce.

Although the law has been passed before we begin the SEC must promulgate the rules of engagement.  Congress mandated that this be completed by the end of 2012 but has not happened yet.  Many expect that by the end of the year we’ll be ready to go.

The JOBS Act defines “funding portal” as any person acting as an intermediary in a transaction involving the offer or sale of securities for the account of others.

A Funding Portal Does Not:

  1. Offer investment advice or recommendations.
  2. Solicit purchases, sales or offers to buy the securities offered or displayed
  3. Compensate others for solicitation
  4. Hold or manage investor funds
  5. Engage of other activities determined by the SEC

For entrepreneurs, if you’ve got a great idea you will soon be able to create a video to put up on one of the portals and raise up to $1 Million per year direct to the public.

For small investors, you will soon be able to go to one of these sites and look for great ideas to invest in.  Who knows, you may find the next Instagram.

What we Believe

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We believe in providing seamless, intelligent, business solutions that don’t get in your way. We believe communication is the key. Whether it comes from your business systems or business partners; our mission is to provide timely, accurate, relevant information.

We believe that the ability to rapidly communicate worldwide is changing almost every aspect of our lives, not just how we do business.

With communication comes the understanding. The ability to communicate rapidly and build communities very efficiently has not only begun to revolutionize business but even toppled long-standing dictatorships.

We can rapidly reach out far and wide to find out what’s happening in the four corners of the earth. But if you don’t understand what’s happening in your own backyard then the system breaks down.  Communication is two-way and if you can’t feed accurate information in to the network then it’s quality diminishes just as rapidly.

We care very deeply about creating local communities that are sustainable and in tune with their natural resources. This applies to our stewardship of the land whether for food, business, or leisure. It all comes down to communication. It’s truly amazing what we can overcome when we do.