The Competitive Moat in Crowdfunding = Owning the Community

Dealmaker
Posted at 11/28/2022

If you’re trying to build something (a company, a product, a service) and not simultaneously building a community, then the future is likely dim. Customer acquisition costs have never been higher due to App Tracking Transparency (that’s a whole other post - explainer here) alongside increasing competition because it's never been easier to start a business in a world of AWS, 3PLs, Shopify, open AI models, and other software tools that are essentially a business in a box.

This is why community matters. Community by its nature is a group of like-minded individuals coming together, and this ultimately can equate to built-in distribution. And I cannot stress this enough: distribution is the best and biggest competitive moat. In some sense, distribution is all that matters; you could have the best product/service in the world, but without a distribution moat you’ll be left high and dry.

A great example of this is in the newspaper business – once upon a time the printing presses and physical ...more

Categories: Issuer Education  |  Reg A+  |  Reg CF
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Part 2 (of 3): SmallChange Regulation Crowdfunding (Reg CF) Educational Materials

Small Change
Posted at 10/19/2022

The kinds of securities we will offer

We could offer any kind of Security on the Platform, including:

Equity Securities. When you buy an “equity security,” like the common stock of a corporation, you become an owner of the company. The value of your interest fluctuates with the fortunes of the company; if the company does well the value of your interest goes up, while if it does poorly the value goes down, possibly all the way to zero. As an owner, you generally have the right to share in any profit distributions made by the company, and you also share in the appreciation in the value of the company. Owning an equity security in a company is like owning a house, both the good part and the bad part. When a company dissolves, the owners of the equity securities are paid last, after all the creditors.

“Preferred” Equity Securities. In some cases, a company will offer a “preferred equity security,” like the preferred stock of a corporation. Typically,...more

Categories: Investor Education  |  Reg CF
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Elon Musk and his billionaire buddies showcase why crowdfunding is needed

Brian Christie Brian Christie
Posted at 10/8/2022

The saga surrounding the pending acquisition of Twitter and the recent public disclosure of texts between Elon Musk and his network are revealing in a few ways.

1: “Randos” Everywhere: The strategies he and his pals throw around for monetizing and "freeing speech" on social media are totally random or "rando" as he would put it. It reflects the opinion of people operating in the clouds, rather than in the trenches of social media technology or policy. With enough money thrown at the problem, they will likely back into some “right answers” for improving Twitter’s performance -- but it would not be because of any special insight or grit.      

2. The Billionaire Insider’s Club: Elon puts together a syndicate of friends / investors to purchase Twitter and it is a club of people willing to toss in a billion here, a billion there -- because it would "be fun" (Reid Hoffman). Oracle founder Larry Ellison agrees to invest a couple billion af...more

Categories: Law & Legal
Sponsored by: Dealmaker
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The Flexibility of Regulation A Crowdfunding

Ron Costa Ron Costa
Posted at 10/3/2022

Many seeking to raise capital for their business usually use the tried-and-true Regulation D exemption from the IRS. But did you know that going the Regulation A (Reg.A) route may provide you with more flexibility, both in the short and long term? In this podcast, Mike Brette from Small Cap Equity Advisors discusses some of the options, nuances, and advantages that Reg.A provides compared to a private placement under 506(c) Reg D. But you have to do it all correctly. And one thing’s for certain: you don’t want to raise any red flags with the SEC!

LISTEN TO THE PODCAST HERE

Many think raising money under Reg.D is cheaper, better, and faster than doing a Reg.A. Are they right? Despite being around for a while now, not many business owners, CEOs, and issuers truly understand crowdfunding, especially Reg.A crowdfunding. When you listen to this podcast, you’ll get a better understanding of why Mr. Brette is so bullish on the topic. From its liquidity options on secondary markets, costs invo...more

Categories: Reg A+
Sponsored by: Dealmaker
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Part 1 (of 3): SmallChange Regulation Crowdfunding (Reg CF) Educational Materials

Small Change
Posted at 10/3/2022

How we work (for investors)

Regulation Crowdfunding (Reg CF) Educational Materials

This Investor Education Package is intended to provide you with important information about investing through our Funding Portal. Before investing, you should carefully review and understand this information. If you don’t understand something or have a question, please contact us via email at hello@smallchange.co.

This Investor Education Package applies only to offerings made under Title III of the JOBS Act. It does not apply to offerings made under Title II of the JOBS Act.

 This document is intended to help explain:

  • What we do, and how we do it.
  • The process for buying securities through our Funding Portal.
  • The limitations on the amounts you may invest.
  • Your right to cancel your investment commitment.
  • The circumstances in which the issuer may cancel your investment commitment.
  • The risks associated with investing in the securities sold through our Funding Portal.
  • The different typ
...more

Categories: Funding Portals
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Why Founders raise Money to pay General Contractors

Samson Williams Samson Williams
Posted at 10/2/2022

Morning Beautiful People! 

This is the TL;DR version of the obvious when it comes to Founder's raising capital: 

  1. The many Founders are raising capital to pay a General Contractor to build their commercial or retail space 
    • All real estate developers are raising money to pay General Contractors for services. 
  2. Hence why such a significant portion of startup capital raised go to a General Contractor for construction services 
  3. MattBeth Construction would like to be your equity partner to help strategically grow your business

If you're like Elon Musk and believe that your company can only grow with your employees physically back in the office, we assure you that none of your "mutinous" staff want to return to the same boring ole, cubicle gulags circa Q1 2020. MattBeth Construction can help you design a truly modern space that will a) save you an internal civil war and b) make your staff actively want to and compete to reclaim "the corner office" (even if today's...more

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Named the 3rd Fastest Growing Company in Canada - for good reason

Dealmaker
Posted at 9/23/2022

All founders and leaders know how hard growth is. Most days it comes as incremental steps - but sometimes, it's an exponential phenomenon that is powered by the incredible team you've built. This is one of those days. 

With our office HQ in Toronto, but our satellite offices in Texas and Florida, we are proud to be named Canada's 3rd fastest-growing company for 2022. Although we are #3 overall, we are #1 in the Tech category.

We are building the 'Shopify solution' for the capital markets with a focus on making it easy for brands to transition from traditional venture capital (VC) raises to a more global, digital solution.

We are focused on serving our issuers and partners - which sets us apart from our competition. Crowdfunding portals are typically focused on attracting investors and providing value to them. Our technology is focused on powering up our partners to raise multiple deal types for multiple issuers AND providing a solid, innovative, end-to-end solution for issuers to ...more

Categories: Funding Portals  |  Reg A+  |  Reg CF
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WEconomy and the (re)building of the American Dream

Scott McIntyre Scott McIntyre
Posted at 9/14/2022

WEconomy is a social, financial movement powered by a revolutionary set of tools that help establish thriving regional economies, available to all residents, fueled by their own local currency.

In addition to Crowdfunding, the WEconomy sets the stage for residents of communities in crisis to enjoy purpose, resilience and prosperity again...all without the need to get in line at a bank or hope for benevolent investors.

Join me on Friday for my closing address and learn what we've been cooking.

...more

Categories: Corporate Social Responsibility  |  Education & Training  |  Equity (RIC)  |  Impact Investing  |  Law & Legal  |  Regulations & Compliance
Sponsored by: Dealmaker
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