The Job of Art & Business Crowd-Funding

The JOBS Act & Business Crowd-funding Happy 2nd Birthday to the JOBS Act! A lot has changed since President Obama signed the Jumpstart Our Business Startups Act April 5, 2012. Crowd-funding websites raised a staggering $5.1 Billion dollars in 2013 and are off to an even stronger start this year. Every day, more entrepreneurs are turning to business crowd-funding to get their ideas and early stage companies off the ground. Equity Crowd-funding has become a major catalyst in changing the way businesses launch, grow, and scale. To celebrate the anniversary of the JOBS Act, we've put together an infographic detailing some of the latest stats and guidelines around crowd-funding. Here's to another incredible year of startup funding! WHAT IS THE JOBS ACT The JOBS Act Contains Two Main Provisions: Removes the Ban on General Solicitation Allows companies to publicly talk about raising funding Investors can access Entrepreneurs can reach more investors more deal flow Removes the Accredited Investor Requirement Allows anyone in the age of 18 to invest in private companies Past 258K Active Accredited Investors Future 233.7MM Americans will qualify When the accredited investor Restriction in removed WHY IT MATTERS Startup Investments have a profound impact on the health of our economy creating jobs and economic growth. EVERY $37.702 $6.36 EVERY NEWJOB $1 IN REVENUE INVESTED INVESTED IN STARTUPS WHEN WILL THE RULES BE DONE? While the removal of the ban on general solicitation was implemented on July 10th, 2013, we are still waiting for the other provisions of the JOBS Act to be finalized. Date of Date of Date of Wait Legislation Proposed Rules Final Rules Disqualification offcuts and other "Bad Actors"- 777 Dodd Frank May 25, 2011 July 10, 2013 days from rule 506 offerings July 21, 2010 315 Repeal of the Ban On General Solicitation JOBS ACT April 5, 2012 Aug 29, 2012 July 10, 2013 days JOBS ACT Crowdfunding Oct 23, 2013 Still Waiting Unknown April 5, 2012 Amendments to Not Called for by any particular plece of legislation Regulation D. form D. and Rule 156 July 10, 2013 Sull Waiting Unknown Joe Wallin of the StartupLawBlog.com predicts that we won't see final Crowdfunding rules until December 2014 or even early next year (2015) CROWDFUNDING AT PRESENT Even within the current framework, business crowdfunding sites like fundable (the largest) continue to grow rapidly OVER $90 MILLION 2 2010 2011 2012 FUNDABLE HAS BEEN RAISED WITHIN THE PAST TWO YEARS THE INDUSTRY IS SET TO GROW 92% 2014 The industry has grown 1000% in 5 years 6. 4 2009 2010 2011 2012 2013 2014 PROVIDING S1OBBA IN FUNDING TO STARTUP COMPANIES FUTURE at this growth rate by 2020 CROWDFUNDING WILL CONTRIBUTE GENERATING $500BB $3.2TRILLION PLUS IN ECONOMIC VALUE PER YEAR IN FUNDING PER YEAR Crowdfunding will Create more than 2MM new jobs by 2020 WHY MORE INVESTMENT IS IMPORTANT THE LARGEST CROWDFUNDING COMPANIES: FUNDABLE Average $175,000 Raise size of KICKSTARTER Average Raise size of $15,035 * indiegogo Average Raise size of $7.481 BROUGHT TO YOU BY FUNDABLE, THE LARGEST BUSINESS CROWDFUNDING SITE. FUNDABLE empacto #1 CROWDFUNDING PLATFORM FOR BUSINESS the largest pool of consumer investors. gures in Milion INDUSTRY GROWTH IN BILLION