The 2012 JOBS Act enabled both accredited and unaccredited investors to use the Web and social media to make investments in entrepreneurs… -FungInstitute.Berkeley.edu

$ 2.7 B $ 5.1 B Note: BY comparison Reg D private placement market in 2012 raised $800 billion in capital --

Break-even Struggling Succeeding Crowdfunding

Need to repayDon’t need to repay Lending based Equity based Donation based Reward based 4 CF Platform group Cost $ = APR rates: 6% - 35%* Good Credit Score * Kiva = 0% interest loans Cost $ = 4% to 9% (plus 3% escrow) Postage, Taxes, Time Accredited Investors (high net worth)

1 create cf application /campaign

Reward/ Donation Seeking < $50k Cost: 4%-9% Cost: APR 6% - 35% Seeking > $50k Equity/Lending platforms Choices: Start-up company vs existing company Specific Project Funding Need for Newco Capital

Reward/ Donation “All or Nothing” 5% (+3% CC Fee)

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