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Sherwood Neiss - Getting Started with Crowdfund Investing In a Day For Dummies

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Sherwood Neiss Getting Started with Crowdfund Investing In a Day For Dummies

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Getting Started with Crowdund Investing In a Day For Dummies shows small business owners what they can do now to prepare for crowdfund investing since the signing of the 2012 JOBS Act into law.

It includes an overview of how crowdfunding came about; the steps you can take to get ready for CFI once it is available, and ways you can make your company or business project attractive to investors.

  • The origins of the JOBS Act
    • Working within the legal standards and processes for the business and investor side of crowdfunding
    • Requirements for investors, internet-intermediaries, and small businesses
    • Shopping for the best crowdfund investing platform

      This e-book also links to an online component at Dummies.com that extends the topic into step-by-step tutorials and other beyond the book content including: advice and articles on how to find a startup worth funding; information on the future of crowdfunding; pros and cons of CrowdFunding; an exclusive Part of Tens chapter; and more.

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    Getting Started with Crowdfund Investing In A Day For Dummies by Sherwood - photo 1

    Getting Started with Crowdfund Investing In A Day For Dummies

    by Sherwood Neiss, Jason W. Best, and Zak Cassady-Dorion

    Getting Started with Crowdfund Investing In A Day For Dummies Published by - photo 2

    Getting Started with Crowdfund Investing In A Day For Dummies

    Published by
    John Wiley & Sons, Inc.
    111 River St.
    Hoboken, NJ 07030-5774

    www.wiley.com

    Copyright 2013 by John Wiley & Sons, Inc., Hoboken, New Jersey

    Published simultaneously in Canada

    No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions .

    Trademarks: Wiley, the Wiley logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc., and/or its affiliates in the United States and other countries, and may not be used without written permission. All other trademarks are the property of their respective owners. John Wiley & Sons, Inc., is not associated with any product or vendor mentioned in this book.

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    ISBN 978-1-118-50224-2 (ebk); ISBN 978-1-118-50226-6 (ebk); ISBN 978-1-118-50229-7 (ebk)

    Manufactured in the United States of America

    10 9 8 7 6 5 4 3 2 1

    Picture 3

    Introduction

    C rowdfund investing is an exciting new business financing opportunity created by the JOBS Act that was signed into law in 2012. It taps into the power of the crowd by connecting entrepreneurs and small business owners with investors via LinkedIn, Facebook, Twitter, and other social media. And it offers small investors the chance to purchase an equity stake (or to fund debt) in small, private businesses run by people they know and trust.

    Crowdfund investing occurs via online funding portals: websites that host investment campaigns and collect investor pledges. An individual can invest only a limited amount each year in these campaigns (to mitigate investor risk), and a campaign must be funded completely in order for the business to receive investor dollars. The U.S. Securities and Exchange Commission is charged with regulating the crowdfund investing industry and will announce industry regulations in early 2013.

    If youve got a great concept, a solid business plan, and vibrant social networks, you may find that crowdfund investing is a great fit for you. Reading this book is your first step to figuring out if thats the case.

    What You Can Do In A Day

    In a day, you can get yourself up to speed on the opportunities that crowdfund investing presents and the legislative guidelines that you must follow. You can start to visualize the size and makeup of your ideal investment crowd, and you can discover how an online funding portal will support your campaign. You can even start working on your campaign pitch by drafting a headline that succinctly states your goal(s) and considering what youd say to an investor in a video that explains who you are and what you want to accomplish.

    Be realistic: You cant set up a brilliant crowdfund investment campaign in a single day. But you certainly can lay the groundwork for what may become a vital source of funding for your business after the crowdfund industry debuts in 2013.

    Foolish Assumptions

    We assume that youre coming to this text with at least a little business acumen. Maybe youre already running a company, or youve got at least a draft of a business plan in hand. With that said, we avoid jargon and focus on the fundamentals here, so even if this is the first book you read about business financing, you wont have any trouble following along.

    Icons Used in This Book

    Throughout this book youll notice small graphics in the margins, called icons. These symbols are meant to draw your attention to particular ideas.

    Getting Started with Crowdfund Investing In a Day For Dummies - image 4 This icon denotes information that can ease your efforts when starting a crowdfund investing campaign.

    Getting Started with Crowdfund Investing In a Day For Dummies - image 5 To avoid a common misstep, heed the advice offered in a paragraph accompanied by this icon.

    Getting Started with Crowdfund Investing In a Day For Dummies - image 6 These tidbits are worth tucking into your mental filing cabinet for future use.

    Getting Started with Crowdfund Investing In a Day For Dummies - image 7 Take a break from the text for a quick exercise designed to help you get a better grasp of crowdfund investing. This icon shows you what to do.

    Getting Started with Crowdfund Investing In a Day For Dummies - image 8 When you see this icon, head to this books companion website at

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