NYU lecture in entrepreneurship & crowdfudning. For more information please visit http://www.rockthepost.com

1. Entrepreneurship & Crowdfunding

2. Agenda
 About Me
 Entrepreneurship
 RockThePost
 Crowdfunding
 Equity Based Crowdfunding & JOBS Act
 Questions

3. Who am I?
Alejandro Cremades
 Born in Spain.
 Law Degree.
 Masters on International Business & Trade Law
 International Business Law at King & Spalding
 Chevron vs. Ecuador - $113 billion.
 CEO/ Founder of Rock The Post

4. Entrepreneurship

5. How entrepreneurs are born.
 Idea
 Team
 Market
 Product

6. Where do ideas come from?
 Most important ideas take time to evolve and spend a
long time dormant in the background.
 Good ideas need time to incubate.
 Sometimes you have ½ of the idea. It is important to
share with other people and to borrow other people’s
thoughts and combine them.
 Creativity and innovation happens thanks to the so many
ways in which humans can connect nowadays.

7. Assembling the A+ Team
 Average people hire average employees. A+ people
hire A+ people.
 Find these rock stars within your network.
 People you don’t know may be found via Linkedin, Co-
Founders Lab, or Meetup events.
 Retain talent by giving them a piece of the pie. It is better
to have 10% of something valuable than 100% of nothing.
 Create the best working environment.

8. Market Research
 Avoid thinking you are the first to market. There are
always similar products.
 Investigate what potential competitors are doing and
how to do it better.
 Figure out how to monetize. Investors want to know this.
 Gather demographic and economic data.

9. Product
 Avoid outsourcing the core parts of your business. Instead
partner with someone who is an expert.
 Gather early testers of your product. Measure and study
how they react towards it.
 Launch a store, something simple. Build it from there to
get to the mall you envision.
 Get a grasp on marketing strategies.
 Think about funding. A lot.

10. First Critical Steps
 Buy the domain name of your business and get the social
media pages before anyone else.
 Register your mark with the USPTO.
 Find a great lawyer with experience in your field.

11. Mistakes
 Keeping your idea secret.
 Not launching until having the perfect product.
 Not having a complete business plan.
 Not living and breathing your project.
 Raising more money than what you need.
 Hiring average people.

12. Tips
 Solve a critical need
 Simplify as much as possible your product
 Listen to your costumers. Don’t be afraid to iterate your
product until you get it right.
 Spread the word as much as you can.
 Follow your passion.

13. The Startup Game

14. Featured in:

15. Why Rock The Post Was Born
 Problem  Entrepreneurs had a very hard time
finding financing.
 In 2009, U.S. banks posted the sharpest decline in
private lending since 1942.
 98% of the business plans rejected by
VC’s and Angel Investors.

16. Rock The Post’s Solutions
 Funding innovation = Evolution.
 Platform taking funding from Wall Street To Main Street.
 Equal opportunities in the world of business.
 Community involvement.
 Financing early stage companies and entrepreneurs.
 Contributing to job creation (small business created 65%
of the net new jobs in the past 17 years).

17. Rock The Post = Crowdfunding
DEFINITION:
Crowdfunding is essentially a tool that gives entrepreneurs the opportunity
to attract a pool of people via social media or shared interests in order to
contribute to a funding target that has been previously established
by the entrepreneur.

18. Why Crowdfund? (The Benefits)
Provides access to capital
Establish proof of concept
It hedges risk - Presell your product
Test current business plan
Analyze your product’s market demand
Great marketing tool - Grow your audience
Gather insight for improving your product
Determine the best price point

21. Check List for Creating a Project
 Video
 Monetary Goal and Purpose
 Complete Project
 Time
 Effort

22. How it works

23. Recent Success Stories
Villy Custom - $10,032 MUUSE - $15,010
MusicX.fm - $20,429 Jesse Aizenstat - $20,105

24. Crowdfunding Platform Comparison
Kickstarter Indiegogo Rock The Post
Company
Focus Product focus Broad
Purpose
Funding All or nothing Flexible All or nothing
Mass consumer Fund my life Entrepreneurs at
Area
products projects early stage
Customer
Limited Limited Excellent
Service

25. Misconceptions
Solely Launching a
Campaign Will Bring
in the Money

26. Misconceptions
NOT LIKELY
Leverage your inner
networks!

27. Misconceptions
By Directing People to
Your Project, They Will
Pledge

28. Misconceptions
NOT LIKELY
Be bold and clear about your
message!

29. Misconceptions
Crowdfunding
Campaigns are
Effortless

30. Misconceptions
NOT TRUE
Requires time and energy!

31. Basic Crowdfunding Campaign Process
1. Plan ahead for campaign
i. Distribution lists
ii. Set fundraising goal & campaign
length
iii. Target media outlets

32. Process
2. Create the crowdfunding campaign
i. Create an epic story
ii. Have enticing reward
iii. Identify your target audience

33. Process
3. Once the campaign is running
i. Spread The Word
ii. Project updates

34. Manage Expectations
 1-2 weeks to complete a post
 25-40% of funds from
1st, 2nd, and 3rd degree
connections.
 Stay active throughout
campaign!

35. Why People Pledge

36. Equity Based Crowdfunding

37. JOBS Act
 In the spring of 2012, President Obama passed the JOBS
Act, short for Jumpstart Our Our Business.
 Possibility for non-accredited investors to invest in private
offerings.
 The US Securities Exchange Commission (SEC) has been
instructed by Congress to issue the regulations covering this
space on or before January 2013.
 The Self Regulatory Organization (SRO) is established. Possibly
FINRA.
 Equity crowdfunding becomes possible being able to be the
first investor on the next Facebook, Twitter, or Dropbox.

38. Defining accredited investors
 Net worth greater than $1 million. The primary residence is
not counted as an asset in the net worth calculation.
 A natural person with income exceeding $200,000 in
each of the two most recent years or joint income with a
spouse exceeding $300,000
 Accredited investors represent only 1% of the U.S.
population.

39. JOBS ACT - Title III Requirements for
issuers (project creators)
 Registration and incorporation documents.
 Name of directors, officer and stockholders.
 Description of the business.
 Prior year tax returns.
 Financial statements.
 Intended use of proceeds, target amount and deadline.
 Share price.
 Description of ownership.
 Outstanding securities of the company.

40. Conclusion
Crowdfunding is a great option for
early stage companies and
entrepreneurs trying to make their
dreams become a reality to obtain
funding and to gain exposure .

41. Questions