Tag Archives: british columbians

Crowdfunding Course 101 in British Columbia?

By Antonio A Arias and Joy Case

KnowledgeSince the announcement of the JOBS Act in April 2012, we have hosted speaking events,  crowdfunding meetups and webinars focused on the why and what of crowdfunding.  After months of discussions with a recognized institution in British Columbia, we are now drafting a course outline.

Crowdfunding/ crowdsourcing is definitely going main stream.  On October 23, 2013, the US SEC regulators tabled the JOBS Act Title III proposed crowdfunding rules for public comment. In Canada each provincial securities regulators are jockeying up for the leadership position while awaiting a national holistic solution. Saskatchewan was first off the gate yesterday (Dec.6, 2013) when it legalized crowdfunding to non-accredited investors.

To offer courses, the challenge is who to please first. Our objective is to educate three principal audiences with respect to time savings and financial gains:

  1. small and medium size businesses (SMEs),
  2. investors, and
  3. professional service providers.

With technology advances, we can do more with less time, save money, and gain more revenues.

What is it about technology that changes everything?

Answer: It is all in the proprietary technology, which we will cover during the course. For those innovative early adopters, you are already experiencing it. We would like you to be our special guests too.

Our introductory course will be focused on the how to of  presales and equity crowdfunding.

We are targeting the following audience for these reasons:

Target Audience Reasons
Entrepreneurs contemplating on test marketing or preselling their prototypes. Portals are a good starting point to test market your minimum viable product (MVP) at lower investment costs.
Entrepreneurs contemplating equity crowdfunding Equity financing involves all business school disciplines: marketing (IR/PR, social/traditional media), finance/accounting, securities law, human resources, psychology/sociology, arts and science, among others.
Investors – speculators, strategic, angels, venture capitalists, private equity funds,  institutional Financing ecosystem will converge from angel, VC, PE, secondary trading, all the way to liquidity events by M&A or going public.Information technology has created a flatter world. If we break down silos or information gatekeepers dividing investor groups, we can all profit more efficiently.
Securities regulators, securities lawyers Technology replaces archaic systems and still provides protective measures to investors while facilitating capital flow.
Professional  service providers (finance/analysts/ accountants, marketing IR/PR social media, securities lawyers) Understand how technology has made our jobs so much easier and how you can provide more value added services to clients.
Traditionalists Technology does not replace everything but enhances our productivity.  Find out how it complements your current practices.

Call to Action:

Here are our draft Learning Outcomes (Duration: Two six hour Saturday sessions)

  1. Understand the 4 types of crowdfunding; historical and current practices
  2. Understand how technology has enhanced financing and marketing practices
  3. Identify and analyse best practices for successful crowdfunding campaigns
  4. Gain experience producing and marketing video for investment pitches
  5. Research and analyse social media marketing and public relations for campaigns
  6. Understand how crowdfunding and crowdsourcing  are used as market research and predictive analytics
  7. Integrating online and offline finance and marketing practices

We plan to host a series of courses and your inputs will allow us to deliver a better service.  If you identify yourself as one of the above audiences, what would you like to learn from our introductory crowdfunding course?

Your comments or inquiries are valuable to us. Please contact us through this blog or via our Twitter handles; @HealthVCFunder for Antonio and @FundItTV for Joy.

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Filed under For Entrepreneurs, For Investors, healthycrowdfunder general

B.C. Entrepreneurs Turn to Crowd-Funding

social_mediaB.C. Entrepreneurs Turn to Crowd-Funding For New Ways of Financing Startups | BC Business #HealthyCrowdfunder. Click here for article  http://ow.ly/oER39

Comments to Jacob Parry’s article

Please note my comments to Jacob’s article and specified the distinction between accredited and non-accredited investor crowd. Note how we will apply best practices when managing publicly listed companies to private companies. We are simply reinventing the public capital markets. As soon as we involve the crowd, everything is public. As soon as we use OPM – other people’s money, they are entitled to timely full disclosures and best practices of publicly listed companies. We will slash down regulatory compliance costs through use of proprietary technology.

Antonio (Tony) Arias

Jacob – thanks for covering our mission to advance equity based crowdfunding. I wish
to emphasize we are targeting accredited investors first while building a
health fund and the Healthy Crowdfunder platform.

Educating investors about the risks, co-managing and co-developing our investees until
the exit date, and developing proprietary algorithms are some of our
competitive edge.

At our recent crowdfunding meetup I spoke about how Mr Algorithm (high
frequency traders) has taken over the stock exchanges at the expense of SMEs’
access to capital and liquidity. The best antidote is algorithm itself combined
with our creative and entrepreneurial skills. The securities regulators and
securities rules are so far behind what technology can do now. One of our jobs
is to prove to them that technology itself is one of the best weapons against
fraudulent actors. Several KYC (know your clients) and KYP (know your products)
job routines can be automated. Algorithm can also detect anything that is out
of pattern. Think IBM’s Watson.

The broker/ dealers provide only a partial investor protection. The buck stops at
the CEOs, CFOs, and independent directors who report to shareholders, who stand
to lose the most if they don’t perform their fiduciary duties to shareholders.
As the strategic advisers and co-managers of these ventures, we will provide
better protection since for each investee, we are investor/shareholders ourselves.

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Crowdfunding or Financing Tips

On October 25, 2012, I presented the “12 Things You Must Do Before Crowdfunding” to the Koomoni and TechBA Group at Discovery Park, Vancouver, BC. The audience are composed of entrepreneurs primarily interested in the Latin American countries. I am sending copies particularly to those who did not make it. In exchange, I would appreciate getting your comments or questions. We aim to make Healthy Crowdfunder Corp, the global go-to merchant banker financing health wellness and high tech health ventures, so that we can be part of the solution to rising global health care costs.

Download these slides while watching the video.

Our crowdfunding platform is under construction. Meanwhile, we encourage viewers to go to our landing page: http://www.healthycrowdfunder.com play our video and download a more detailed checklist of the 12 Things You Must Do Before Crowdfunding. Your comments and questions are always welcome.

Gracias y saludos,
Antonio

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Healthy Crowdfunder Comments on Investor Protection

Tony Arias comments on balancing social returns with financial returns, creating jobs by facilitating easier access to capital for the entrepreneurs, and at the same time, protecting investors’s interest at the optimum cost in time and money. For example, in British Columbia we have an offering memorandum that can be streamlined. It is more important to spend time and money conducting due diligence on the CEO, his management team and his board of advisors/directors, to ensure that they have the right team players with the applicable track record of success, to execute the business plan according to pre-agreed milestones. More businesses have failed due to management incompetence or failure to execute the plan than due to fraud. For securities based crowdfunding, Tony Arias also cited another practical solution being provided by CrowdCheck Inc, led by Sara Hanks http://www.crowdcheck.biz/. During the due diligence process, validating the business plan assumptions to ensure milestones will be met, will result in better investor relations and further financing round support than burdening managment with the audit of historical data. Those are sunk costs. It is better to ask management to report on the ROI – return on investment for all of the sunk costs. How did the related activities contribute to the business development or advancement of the business towards commercialization?

Protecting investors or the shareholders is a continuous process. Companies being financed by the crowd should get accustomed to operating like public companies at no frills costs. Among others, the following protective measures should be in place:
– strong corporate governance with recruitment of more independent directors
– continuous disclosure of material events
– publication of target milestones
– quarterly progress report of actual results vs pre-agreed milestones

Canada is lagging behind on crowdfunding developments. Check out these sites for regular updates:
. Crowdfunding Professional Association http://crowdfundingprofessional.org/
. Crowdfunding Intermediary Regulatory Advocates http://www.cfira.org/
. Invest Crowdfund Canada http://icanada.nu/crowdfunding/

Since Canada has different provincial “SECs” become part of changing Canadian financial history. Help us appeal to the British Columbia securities regulators and our political leaders how friendlier crowdfunding laws will entice more innovative entrepreneurs and create more jobs for British Columbians. Join our LinkedIn discussion group: British Columbians for Crowdfunding Entrepreneurs and Job Creations http://www.linkedin.com/groups?gid=4612601&trk=hb_side_g. Set up your LinkedIn messages so that you get future meeting invitations on time.

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Filed under healthycrowdfunder general, Securities law change campaign