For additional information please contact Bill Joyce, President

Vision Management

A CrowdCreative Company

817-918-4667 [email protected]

NTCR

Who invests in CrowdCos

And what do they want

Who Invests in CrowdCos

And what do they want

Picture by permission from: http://www.startup2startup.net/

In this meeting we will explore the types of investors for the two types of CrowdCos that we established, beginning to map out their “sweet-spots” and the processes that support them.

NTCR Housekeeping

Item

The quality of the presentation is directly proportional to someone with talent stepping up and cleaning up my scribblings The cooperative business model implores us to keep our contributors in mind and refer them whenever possible.

Connective Hub is one of the businesses we should refer regularly

Topics come from the CROWD of which you are an integral part.

OK

We have all seen growth patterns like this….

In fact if we were to start an new Widget Company we would hope to convince our potential investors that our product would grow along these lines.

CrowdFunding is real and it will be a major process within our economy for the foreseeable future.

en·ter·prise

(ntr-prz)n. 1. An undertaking, especially one of some scope, complication, and risk.

2. A business organization.

3. Industrious, systematic activity, especially when directed toward profit:

Private enterprise is basic to capitalism.

4. Willingness to undertake new ventures; initiative: "Through want of enterprise and faith men are where they are, buying and selling, and spending their lives like serfs" (Henry David Thoreau).

[Middle English, from Old French entreprise, from past participle of entreprendre, to undertake : entre-, between (from Latin inter-; see inter-) + prendre, to take (from Latin prehendere, prndere; see ghend- in Indo-European roots).] enter·priser n. The American Heritage® Dictionary of the English Language, Fourth Edition copyright ©2000 by Houghton Mifflin Company. Updated in 2009. Published by Houghton Mifflin Company . All rights reserved.

http://dictionary.reference.com/browse/mom-and-pop

mom-and-pop

[mom-uhn-pop] Show IPA adjective, noun, plural mom-and-pops. adjective 1. of or pertaining to a small retail business, usually owned and operated by members of a family: a mom-and-pop grocery. 2. of or indicating something, as an enterprise, investment, or project, that is independent , small in scope, and modestly financed.

We are going to build a two-pronged answer based upon our definition of Mom & Pop and Enterprise CrowdCos

An opposing opinion from Harvard…

http://blogs.hbr.org/cs/2012/04/the_road_to_ crowdfunding_hell.html?awid=684857044290 1240197-3271 But the crowdfunding jewel is fool's gold, and is inherently incapable of harnessing "people-to-people power" and the "wisdom of crowds" to "democratize access to capital for entrepreneurs" in order to "create wealth and make things happen," as crowdfunding sites publicly proclaim.

Daniel Isenberg

The CrowdCo

Mom & Pop Enterprise

Asset Finance /Working Capital Market Penetration

NTCR Provides: Initial marketing services along with non-equity, equity CrowdFunding and CrowdLending

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Equity R&D prior to market Market Penetration Incubator Services Intro. to Angels VCs

NTCR Provides: Full service incubator support and investor monitoring of all CrowdFunding Activities during the first 2 years of CrowdCo lifecycle.

Reason to Invest Reason

Uses the product Knows the CrowdCo owner Understands the industry segment Sees the profitability Wants to participate – can be a vendor to the project Wants to be part of the “in-Crowd”

Mom & Pop Enterprise

Value of CrowdInvestors to the CrowdCo Value Add

Money Market connection and sampling Alpha / Beta testing Network expansion

Mom & Pop Enterprise

Consumer Products Market Segment Argument Mom & Pop Enterprise An Unsaturated Market.

Few capital sources exist for sub-$10 million consumer products businesses. Historically, venture capitalists and angels have focused their attention (although not exclusively, of course) on high tech companies in Silicon Valley and Boston.

The crowd understands consumer products best.

Professional investors will tell you the most important part of their job is due diligence, the process where investors look beneath the hood of a company — analyzing business plans, financials, products, markets, organization, legal issues, and a host of other items — before they invest in a business.

Consumer product companies are efficient users of

funding.

Consumer products companies are often cash flow positive very early on and require minimal startup capital.

http://venturebeat.com/2012/04/04/3-reasons-crowdfunders-will-hit-consumer products-first/

Characteristics of Suitable CrowdCos Key Characteristics

In need of a reasonably low amount of capital The company is interesting The entrepreneur is open to sharing his ideas and welcomes input from investors The entrepreneur knows how to use social media tools

Mom & Pop Enterprise

http://www.smartermoney.nl/?p=619

3 Reasons Why Crowdfunding is like Trick-or-Treating Mom & Pop Enterprise

You need to dress up: If you’re not careful, you might get burned: Standing out from the crowd is critical: http://www.entreviewblog.com/2011/10/3 reasons-why-crowdfunding-is-like.html

Local benefit Benefit

Building Community Do-it-Yourself attitude with the crowd behind you.

See it grow

Mom & Pop Enterprise

http://www.hispanicbusiness.com/2012/4/18/ crowdfunding_a_new_way_of_investing.htm

8 reasons entrepreneurs should CrowdFund Reason 1. Availability of capital 2. Less capital needed 3. The power of social networks 4. A crowd of angels 5. Investments from future customers 6. Proof of concept 7. Global visibility 8. Lean & mean Mom & Pop Enterprise

INVESTOR PROTECTION:

When discussing the current crowd funding taking place, the question is raised: "Why are people doing this?" If only 43% of projects on Kickstarter succeed, why aren't people crying foul but instead pledging more than ever before? ($7M in March on Kickstarter compared to $4M in January).

The answer is simple. They want to help someone they know. They want to support an idea. They want to be part of a community and they want some recognition for it. People are drawn to crowd funding because they are capitalists. They admire entrepreneurs, and they know that sooner or later they may be entrepreneurs as well.

Emphasis added – wcj iii Crowdfund Investing is more than just money - it is facilitation, diligence, team building, and valuation. Most importantly, it is the engine that will create much needed jobs.

http://www.sbecouncil.org/legaction/display.cfm?ID=4575

vmNOTE:

From previous slide: “If only 43% of projects on Kickstarter succeed, why…” This success rate is the number of fully funded projects NOT the number of successful CrowdCos.

Key Point Next… Mom & Pop Enterprise

EquityNet claims crowdfunding patent The process for rating and ranking small pre-public companies has uses beyond just sorting startups.

We are just beginning to see the real work that needs to be done to make CrowdFunding a stable process.

Measurement and valuation tools will bring understanding and a sense of quality to CrowdCos.

wcj iii

http://news.cnet.com/8301-19882_3-57406106 250/equitynet-claims-crowdfunding-patent /

Alexandria-based CrowdCheck conducts background checks on companies seeking equity based crowdfunding and expects it will charge between $1,000 to $10,000 per case, depending on the depth of its investigation.

More and more teams are seeking full solutions

Defining the CrowdCos investment benefits to the ultimate consumer is the first step in measuring “Added Value”.

If we can identify the added value we have a product worth selling.

So says the CrowdCreative Adventures

Together we can make it happen…

CrowdCreative

The new way to build great ideas!