Crowds with CashAlternative Financing is a Mixed Moneybag

of Opportunity for Small Business

Hello!

Welcome to Manta’s Small Business Expert Series

Thanks for joining us today.We’ll get started right at 2 p.m. EDT

Today’s webinar sponsored by #mantaexperts

Crowds with CashAlternative Financing is a Mixed Moneybag

of Opportunity for Small Business

Today’s webinar sponsored by #mantaexperts

CEO

WelcomeJohn Swanciger

Resource listTechnical ?

Q&A

Enlarge the slide area

“Banks slashed small business lending

by $43 billion.” –CNN Money, February 11, 2011

The Story

“The numbers back up what small business

owners have been saying for two years: Main Street

suffered a brutal credit crunch.”

“The future is looking bright for alternative lenders.” –CNN Money, December 18, 2014

Better

Story

“Crowdfunding bill passes assembly.” –NorthJersey.com, March 11, 2015

See the latest Manta research on alternative funding in the resources widget

We’ll Talk

AboutCrowds with Cash

1. Meet the expert: Joe Hogue2. Meet the crowds:

Reward & donation based crowdfunding*Using crowdfunding as a marketing strategy*

Equity crowdfunding Peer-to-Peer lending

3. What you want to talk about: Q&A with Joe

Meet Our Expert

Joseph HogueAuthority on alternative financing & emerging markets investing. Also a blogger, business owner and guy who rocks a bow tie.

Click on the speaker widget to learn more about Joe

Raising money from a large number of people, typically over the Internet

About so much more than just raising money

crowdfunding

For donation and/or rewards

For equity in your business

A revolutionary way to grow your

business

For donation and/or rewards

Rewards-Based

Crowdfunding

Crowdfunding

PlatformsKickstarter

• 13M monthly visitors

• $1.5B pledged• All or nothing• No social

projects• Campaign must

be reward or product based

• 15M monthly visitors

• Fixed or flex • 7,000 active

campaigns at any time

Indiegogo

GoFundMe

• $810M raised• 9M donors• Keep $$

• Medical, travel, education

• Flexible model

Open the resources widget for Joe’s comprehensive list of major crowdfunding platforms

Is there a deadline?

Is it an all or nothing or flexible funding model?

Do they charge a percentage or a monthly fee?

Do they only accept rewards-based projects ?

What about support and education?

Questions to Ask Crowdfunding Platforms

Time-consuming

All or nothing?

Unrealistic expectations

Materials and processes in place

Extends your business online

Business transaction, not fundraising

Crowdfundin

g

Heroes and Heels

Goal $4,000

Purposeconvention booth fees and travel

For

Example

Crowdfunding

Example

Operational• Asked for $10K for

retail build-out• Partnered with local

non-profit• Raised $6K and will

donate 1200+ loaves of bread to a community food pantry

Open the resources widget to visit the All Crumbs Artisan Bakery website

#1 Crowdfunding Benefit

It’s about so much more than the money

A willing audience interested in you and your success

A free page dedicated to your business

Investor groups regularly surf crowdfunding platforms

Feedback and sense of community

Cheerleaders for your brand

Marketing!

Learn more about these guys with Joe’s blog post “What are You Really Getting with Equity Crowdfunding?” in the resources widget

Accredited Investors

Equity

Crowdfunding

Equity Crowdfunding

History

More than a dozen states have written their own crowdfunding laws

Crowdfunder

• $194M in deals• 21,700 companies

• $299 monthly fee

• Requires term sheet, investor pitch deck and

summary

CircleUp

• Consumer & retail• Requires $500K in

annual sales• Funding takes 2-3

months• On-site experts

• Both rewards & equity-based

campaigns• $179 fee for equity

campaigns• Fee plus 3.5% per

transaction for rewards-based

campaigns

Fundable

Equity Crowd

Platforms

What types of businesses do well on the site?

How much support is offered?

What are the revenue requirements?

Is there an active community of investors?

Questions to Ask Equity Platforms

Selling off part of your companyPuts you on the radar of venture capital and private equity firms

Equity platforms entering IPO market

You may have to share control and profits

Priceless advice

Try rewards-based crowdfunding first

Equity

Crowdfunding

Open the resources widget to read Joe’s blog post about Mine Shaft’s success

Start-Up• Asked for $400K seed• Raised $665K in 4

months

Equity

Example

Investors go straight to the source to invest in small business & personal loans

The platform acts as the online administrator

Peer-to-Peer

Lending

Lending Club

• $1B every 3 months

• Allows non-accredited investors

• $35K personal• $300K business• Fixed rates

Lendoor

• Crowdlender• (combines CF & P2P

models) • Borrower decides terms

• Anyone can invest

• Business only• $50K max

• Auction model funds at lowest

rate bid• Focus on veterans• Platform invests

5% in every loan

StreetShares

Peer-to-Peer

Platforms

Open the resources widget for Joe’s comprehensive list of major peer-to-peer platforms.

Is there a pre-payment penalty?

Are rates fixed or is there an auction process?

What are the terms?

Can non-accredited investors participate?

Questions to Ask Peer-to-Peer

Platforms

It’s debt that has to be repaid

Very high interest rates on short terms

Relatively fast and easy

Most loans funded within a day

60% approvals

There are predatory platforms targeting small business owners–educate

yourself

Doesn’t compare to benefits of crowdfunding

Peer-to-

Peer

Open the resources widget to read Joe’s blog post about Combat Flip Flops

Start-Up$30K for 3 years23% interest ratePaid off early200-400% yearly growth

Peer-to-Peer

Example

Use the Whole

Crowd

Many companies use a mix of equity and debt funding

Crowdfunding offers marketing, outreach and exposure

Peer lending is fast and flexible

Today’s webinar sponsored by

Ask

Joe

Connect with Joe and other business owners in the Manta community

Chat with Joe on Twitter immediately following the webinar#mantaexperts

Open the resources widget to get more information about our April webinar

Manta believes in empowering small businesses to achieve success. We’re inspired by your determination and energy. And we understand that every company is unique.

We strive to provide the marketing tools and educational resources you need to stand out, connect with your customers and your peers, and grow your business.

Send us a note and let us know what you’d like to learn from upcoming webinars like this one.

events@manta.com