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Crowdfunding from the Investor's Perspective (Series: Crowdfunding)

This webinar focuses on the opportunities that crowdfunding makes available to the investor, and how the investor should go about navigating this new world. We begin with a basic overview of the new regulatory regime, the requirements to invest, and the on-boarding process one should expect. We then dive deeper into the market opportunity, including how to access and select investments, and expectations investors should set for themselves and the projects they select. This is not intended to support any specific deal selection, but instead sheds a light upon the basic selection criteria available, the method to go about investing and what to avoid.

To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/crowdfunding-investors-perspective-2019/

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Crowdfunding from the Investor's Perspective (Series: Crowdfunding)

  1. 1. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe Insert the cover image for this webinar on this slide entirely 1
  2. 2. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe Practical and entertaining education for attorneys, accountants, business owners and executives, and investors. 2
  3. 3. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe DISCLAIMER The material in this webinar is for informational purposes only. It should not be considered legal, financial or other professional advice. You should consult with an attorney or other appropriate professional to determine what may be best for your individual needs. While Financial Poise™ takes reasonable steps to ensure the information it publishes is accurate, Financial Poise™ makes no guaranty in this regard. About this PowerPoint: if you are looking at this PowerPoint without the benefit of listening to the conversation that surrounded it then you are doing yourself a disservice. This PowerPoint was prepared in contemplation of being viewed in conjunction with listening to a one hour webinar on the topic 3
  4. 4. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe MEET THE FACULTY Moderator: Jordan Fishfeld – CFX Markets Panelists: Nick Giovacchini – AlphaFlow Markley (Mark) S. Roderick – Flaster Greenberg, P.C. Joy Schoffler – Global Brand Strategist 4
  5. 5. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT THIS WEBINAR: Crowdfunding from the Investor’s Perspective This webinar focuses on the opportunities that crowdfunding makes available to the investor, and how the investor should go about navigating this new world. We begin with a basic overview of the new regulatory regime, the requirements to invest, and the on- boarding process one should expect. We then dive deeper into the market opportunity, including how to access and select investments, and expectations investors should set for themselves and the projects they select. This is not intended to support any specific deal selection, but instead sheds a light upon the basic selection criteria available, the method to go about investing and what to avoid. 5
  6. 6. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT THIS SERIES: Crowdfunding 2019 Since the passage of the Securities Act of 1933 and the Exchange Act of 1934, no regulatory change has had such an impact on the capital markets and flow of capital for investors and entrepreneurs alike as the JOBS Act. Originally intended to encourage the funding of small businesses, and passed under the Obama Administration, Title III of the Act, or the CROWDFUND Act, has become a major source of opportunity and stress. This Series explores the numerous titles of the JOBS Act, expanding from the legal definition of crowdfunding, meaning only Title III, to the more common use, meaning capital raising by public solicitation. This includes components of Title II, Title III and Title IV. This webinar spends little time discussing the legal nuances, and focuses more on the practical application and use cases, along with the opportunities and pitfalls of the new legislation. 6
  7. 7. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe EPISODES IN THIS SERIES 5/7/19 Episode #1: Crowdfunding from the Investor's Perspective 6/4/19 Episode #2: Crowdfunding from the Start-Up's Perspective 7/16/19 Episode #3: Securities Crowdfunding for Intermediaries 7 Dates shown are premiere dates. All webinars will be available On Demand approximately 4 weeks after they premiere.
  8. 8. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe Episode #1: Crowdfunding from the Investor’s Perspective 8
  9. 9. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe CROWDFUNDING TYPES • Donation ✓ GoFundMe • Rewards ✓ Kickstarter • Investment ✓ Republic ✓ Fundrise 9
  10. 10. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe REGULATED INVESTMENT-BASED CROWDFUNDING • Investment based securities offerings and sales must either be registered with the SEC and offered publicly or exempt from registration and offered privately, usually under Regulation D 1 0
  11. 11. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe JOBS Act Exemptions • Tile II ✓ Regulation D, Rule 506(c) • Title III ✓ Regulation CF • Title IV ✓ Regulation A+ 1 1
  12. 12. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ACCREDITED INVESTORS DEFINED • Accredited investors include natural persons who: ✓ possess a net worth (alone or with spouse) greater than$1 million (excluding value of home, and not counting home mortgage as a liability, unless it is underwater) or ✓ have an annual income greater than $200,000 (or joint income with spouse greater than $300,000) in the 2 most recent years, and reasonable expectation of similar or higher income in the current year 1 2
  13. 13. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe TITLE II • Update to traditional Reg D offering ✓ General solicitation is allowed, but shifts the burden for accreditation verification to the issuer. ✓ No limit on how much issuer may raise in 1 year ✓ Accredited investors only may invest ✓ No limit on investment amount by those verified accredited investors • Most common form of crowdfunding we see today 1 3
  14. 14. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe TITLE II (cont’d) • Exempt from state registrations • Can be sold through portals that do not need to register with the SEC • Limited to 2000 shareholders before public filing required • Available to foreign investors • No ongoing reporting required, but suggested 1 4
  15. 15. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe TITLE III • Issuer limited to raising $1 million in 1 year, which grows and is now 1.06 million • Anyone may invest, but investments are limited to income and net worth • General solicitation allowed, but only through registered portals • Issuers may rely on investors for income and net worth statements, unlike 506(c) 1 5
  16. 16. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe TITLE III (cont’d) • Moderation ongoing reporting required ✓ Intermediaries must provide “investor education” on their portals and platforms to teach investors, for example, risks of investing in private equity, including loss and illiquidity and conduct background checks on officers, directors, and 20% equity-holders of each issuer, and disqualify same if any one of them is a bad actor • Not available to foreign investors 1 6
  17. 17. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe TITLE IV • Issuer limited to raising $20 million (Tier 1) or $50 million (Tier 2) in 1 year • Anyone can invest, no accreditation required • Investment amount unlimited (Tier 1) or tied to income and net worth (Tier 2 10% of either per deal) • Blue Sky review for Tier 1 but not Tier 2 • General solicitation permitted 1 7
  18. 18. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe TITLE IV (cont’d) • Substantial pre-fundraising requirements and post-fundraising requirements ✓ Must submit information to the SEC for approval ✓ For Tier 2, must have audited financials ✓ Ongoing reporting in details, akin to a mini-public company for Tier 2 securities • No foreign investors, except Canadians 1 8
  19. 19. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe DUE DILIGENCE • What type of due diligence should an investor complete: ✓ Platform diligence ✓ Personal diligence ✓ Deal Diligence 1 9
  20. 20. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe PLATFORM CONSIDERATIONS • Does the investment platform curate its offerings or is it a billboard? • Is the issuer appropriately registered as a business entity? • Where in the process is the issuer as a growing company? • Where do the financial projections of the issuer come from? 2 0
  21. 21. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe PERSONAL CONSIDERATIONS • Invest individually, or through a trust or some other entity • What tax consequences will follow from choice of investment vehicle • What are your rights or liabilities if the investment fails 2 1
  22. 22. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe DEAL DILIGENCE • Review the terms and financials of the deal • Use third party data sources to verify all assumptions • Try to meet with the management team or at least have a call • Understand the risks • Never invest what you can’t afford to lose • If it is too good to be true, it probably is 2 2
  23. 23. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe WHAT TO CONSIDER WHEN INVESTING • Am I knowledgeable about this investment category • How does this investment fit within my portfolio • Does the Sponsor have a particular expertise in the area I am investing • Can this investment be made in a tax-beneficial account • What are your liquidity options with this investment, and does that matter 2 3
  24. 24. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT THE FACULTY 2 4
  25. 25. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe Jordan Fishfeld – Jfishfeld@gmail.com Jordan is the co-founder and CEO of CFX Markets, an online trading platform for non-public investments that is transforming how people view and hold alternative asset positions. CFX Markets is venture-backed with offices in Chicago, New York and California. As an early innovator in the crowdfunding space, Jordan assisted on the rule development of many online capital and crowdfunding rules in a number of different states and federally. Jordan is also the elected Treasurer of the Crowdfunding Professional Association (CfPA), and continues to advocate and educate on behalf of the crowdfunding industry. Additionally, Jordan is a board member of the young professional real estate division of the Jewish United Fund and a Board Member of UpStart, a San Fransisco based accelerator focused on Jewish engagement and innovation. As a result of Jordan’s passion for working with the Jewish Community, he was also named by Oy Chicago and the Young Leadership Division of the JUF as one of Jewish Community’s 36 under 36. Prior to that, Jordan worked as a finance attorney for Katten Muchin Rosenman, LLP, where he assisted on more than $1 billion worth of syndicated loan transactions. 2 5
  26. 26. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe Nick Giovacchini – nick@alphaflow.com AlphaFlow’s mission is to make it easier to invest in previously inaccessible asset classes. Nick Giovacchini is the Director of Client Services at AlphaFlow and is focused on managing AlphaFlow’s accredited investor platform, AlphaFlow Optimized Portfolios, which invest in short term residential real estate loans. Prior to joining AlphaFlow, Nick worked for Barclays Risk Analytics and Index Solutions team, working with institutional asset managers to analyze risk and performance drivers of their portfolios. He also was an Account Manager for MarketFactory, a leading technology provider for the Foreign Exchange world. Nick graduated from The George Washington University with a BA in Political Science in 2012. 2 6
  27. 27. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe Markley (Mark) S. Roderick –Mark.Roderick@flastergreenberg.com Markley S. Roderick concentrates his practice on the representation of entrepreneurs and their businesses. He represents companies across a wide range of industries, including technology, real estate, and healthcare. Expanding on his in-depth knowledge of capital raising and securities law, Mr. Roderick is spearheading Flaster Greenberg's Crowdfunding Practice. He also is a member of the firm’s Mergers and Acquisitions, Business and Corporate, Taxation and Healthcare Groups. Mr. Roderick writes and lectures frequently for professional groups. Recent lectures have covered raising money from investors, franchising laws, and business contracts. He also maintains a Crowdfunding blog, which contains news, updates and links to important information pertaining to the JOBS Act and how Crowdfunding may affect your business. For more information, follow Mr. Roderick on twitter @CrowdfundAttnyor visit www.crowdfundattny.com. To read more about Mark, please visit: https://www.financialpoise.com/financialpoisewebinars/faculty/mark-roderick/ 2 7
  28. 28. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe Joy Schoffler – joy@ideationhq.com Joy is an award winning global brand strategist to business, government and high profile individuals. She is an expert at helping financial brands accelerate growth by building systems and messaging to attract and convert customers, investors and key-stakeholders. She started and sold one of the fastest growing PR firms in America, Leverage PR to NY based Caliber Corporate Advisers. At Leverage, Joy represented numerous financial services companies including dozens of crowdfunding related companies, hedge funds, real estate investment firms and financial technology firms across a number of verticals. Core verticals included: banking, payments, accounting, cyber security, investment tech, regulation technology, and lending among others. She additionally represented brands like SXSW, The Economic Ministries of Japan and Brazil in addition to a number of high profile individuals. Joy additionally ran media and events at the White House, US Capitol, UN, a Shark Tank casting call and a Mark Cuban event among others. Joy has sat on several boards including the SXSW Accelerator, AARP’s FinTech Advisory board, FinTech Professionals Association, Crowdfunding Professionals Association, and Crowdfunding Intermediary Regulatory Advocates. Her crowdfunding boards worked with the SEC and FINRA on JOBS Act implementation, enabling online investing as we know it today. To read more, go to https://www.financialpoise.com/financialpoisewebinars/faculty/joy-schoffler/ 2 8
  29. 29. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe QUESTIONS OR COMMENTS? If you have any questions about this webinar that you did not get to ask during the live premiere, or if you are watching this webinar On Demand, please do not hesitate to email us at info@financialpoise.com with any questions or comments you may have. Please include the name of the webinar in your email and we will do our best to provide a timely response. IMPORTANT NOTE: The material in this presentation is for general educational purposes only. It has been prepared primarily for attorneys and accountants for use in the pursuit of their continuing legal education and continuing professional education. 2 9
  30. 30. The Investor’s Guide to Alternative Assets: The JOBS Act, “Accredited Investing,” and You. "The Investor's Guide to Alternative Assets: The JOBS Act, “Accredited" Investing, and You" provides a thorough, objective, and plain English introduction to investing in alternative assets. Chapters include overviews of angel investing and venture capital, private equity, hedge funds, and so-called "hard assets." An introduction to crowdfunding is included to help you decide whether investing via a crowdfunding portal is for you. Other topics discussed include the JOBS Act itself; "alternative mutual funds," and a host of others that will arm you with the information you need in order to make educated investment decisions. Available on Amazon Kindle and Financial Poise.com.
  31. 31. Copyright © 2019 by DailyDAC, LLC d/b/a Financial Poise Webinars™ Receive our free weekly newsletter at www.financialpoise.com/subscribe ABOUT FINANCIAL POISE DailyDAC LLC, d/b/a Financial Poise™ provides continuing education to attorneys, accountants, business owners and executives, and investors. Its websites, webinars, and books provide Plain English, entertaining, explanations about legal, financial, and other subjects of interest to these audiences. Visit us at www.financialpoise.com. 3 1 Our free weekly newsletter, Financial Poise Weekly, educates readers about business, business law, finance, and investing. To receive it simply add yourself by going to: https://www.financialpoise.com/newsletter/ Email addresses are never sold to or shared with third parties.

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