A groundbreaking book on the growing trend of crowdfunding Crowdfunding has gained considerable traction over the last few years. By combining the Internet/social media with equity-based financing, it is poised to usher in a new asset class that will change how early stage and small business financing transactions are consummated.

Acknowledgments ix Introduction xi Part I. The Business of Crowdfunding 1 Chapter 1 Crowdfunding: A Historical Perspective 3 Jason Best and Sherwood Neiss Chapter 2 Understanding the “Crowd” 15 Karen Kerrigan Chapter 3 A Statistical View of Crowdfunding 31 Carl Esposti Chapter 4 Current Market Dynamics 47 Andrew Dix and Charles Luzar Part II. Preparing for your Crowdfunding campaign 81 Chapter 5 Business Planning in Preparation for a Crowdfunding Campaign 83 David Feldman Chapter 6 Protecting Your Intellectual Property 97 Michael J. Allan and Tremayne M. Norris Chapter 7 Understanding Your Investor Options 111 Reginald Chambers Chapter 8 Communicating with Your Investors or “Backers” 127 Joy Schoffler Chapter 9 Alternatives to Crowdfunding 145 David R. Burton Part III. Understanding the Framework of Rules and Regulations 163 Chapter 10 The Legal Aspects of Crowdfunding and U.S. Law 165 Joan MacLeod Heminway Chapter 11 Crowdfunding Laws Based on Global Jurisdiction 199 Jeff Lynn and Kristof De Buysere Chapter 12 Living with the New Reg D and Its Impact on Pitch Events and Demo Days 213 Kiran Lingam, Trent Dykes, and Megan Muir Afterword 227 About the Author 233 About the Contributors 235 Author’s Disclaimer 241 Index 243

Do you have an idea for a project or business but aren’t sure how to get funding? Or maybe you’ve tried talking to donors and have failed to secure the capital you need. In the same way that social media has changed how we allocate time, crowdfunding will change how we allocate capital. As part of the Bloomberg Financial Series, Crowdfunding: A Guide to Raising Capital on the Internet explains the history and practices of crowdfunding from the perspective of experts. The book gives modern entrepreneurs a solution to long-standing funding challenges, and helps aspiring business owners and non-profit entities pool smaller sources of capital to successfully bring their ideas to life. Beginning with an in-depth look at the history of crowdfunding, the book then moves into a detailed discussion of business funding processes and current market dynamics. It teaches readers how to prepare a successful crowdfunding campaign, how to understand the different investor options, and how to communicate well with investors once contact is made. It also provides a full explanation of legal and compliance issues and dives deep into current rules and regulations, including global jurisdiction as it impacts local laws. Crowdfunding is the only resource you need for creating a crowdfunding campaign that works – from understanding your options, to planning and strategy, to selecting an optimal deal portal. Gone are the days when the only options to raise funds for a new business were venture capitalists, angel investors, or Wall Street. With crowdfunding, any entrepreneur, financier, or non-profit professional can raise funds for their enterprise using smart networking and modern technology.