Summary of Clifford R. Ennico's The crowdfunding handbook

By IRB Media

Please note: This is a companion version & not the original book.

Book Preview: #1 The availability of capital from friends and family has always been extremely limited for entrepreneurs, and in the past this has been the case because people were generally reluctant to lend money to strangers.

#2 Social media has changed the way we communicate, and it has also changed the way we raise capital. Social media allows people to expand their social networks, which allows them to expand their business networks as well. This is how crowdfunding works.

#3 The most basic definition of crowdfunding is raising money for a project or venture from a group of people who are large and undefined: the crowd.

#4 There are three types of crowdfunding: project, accredited investor, and social media.

• Language: English
• Publisher: IRB Media
• Release date: Feb 12, 2022
• ISBN: 9781669348245

IRB Media

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Book preview

Insights on Clifford R. Ennico's The Crowdfunding Handbook

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 1

#1

The availability of capital from friends and family has always been extremely limited for entrepreneurs, and in the past this has been the case because people were generally reluctant to lend money to strangers.

#2

Social media has changed the way we communicate, and it has also changed the way we raise capital. Social media allows people to expand their social networks, which allows them to expand their business networks as well. This is how crowdfunding works.

#3

The most basic definition of crowdfunding is raising money for a project or venture from a group of people who are large and undefined: the crowd.

#4

There are three types of crowdfunding: project, accredited investor, and social media.

#5

The first form of crowdfunding is project crowdfunding, in which the goal is to raise money for a specific project. Investors receive something of value in return, but not necessarily securities.

#6

In both project and gift crowdfunding, investors are not investing in a company or a security, so there are no federal regulations governing it.

#7

The JOBS Act, also known as the Jobs Act, created a new exemption for private offerings of securities in the United States. Before the JOBS Act, companies were not allowed to advertise or promote private offerings of securities at all. The JOBS Act allowed companies to do so as long as they met certain restrictions, such as not raising more than $1 million per year and only allowing accredited investors to buy securities in the company.

#8

The rules for Title III crowdfunded investments were released by the SEC on October 23, 2013. The regulations require that crowdfunded offerings be made through a funding portal, not to the companies themselves.

#9

The author is a business lawyer and consultant. She has worked with many start-up companies that were planning to raise capital through an Initial Public Offering (IPO) or a crowdfunded offering.

#10

Crowdfunding, also known as crowd investing, is a method of raising capital by appealing to the public. It has both advantages and disadvantages. If managed correctly, it can be a wonderful source of capital that wouldn't be available any other way.

#11

The author explains what crowdfunding is and how it evolved, then goes on to explain the steps necessary to launch a successful Title III crowdfunded offering. He also addresses issues that may arise if your campaign is successful.

#12

The author is a lawyer who has spent most of his career representing business start-ups, early-stage companies, and the people who invest in them. He has never worked for the SEC or any other government agency, and this book is not meant to be taken as legal advice. The reader is encouraged to follow the latest developments in the crowdfunding space via