The “Preparing Issuers for equity-based Crowdfunding” presentation provides comprehensive information on the various types of crowdfunding available, an overview of the latest legislative developments, steps to hit the ground running once the legislation is implemented, information on protecting intellectual property while reaching the masses via crowdfunding, and what due diligence materials are needed in accordance with the federal crowdfunding legislation. This is ideal for any company seeking to raise capital via the imminent crowdfund exemption as well as any professional guiding new crowdfund issuers such as investment bankers, investor-relations professionals, brokers, emerging portals, CPAs and attorneys. The complete webinar can also be viewed at: https://www.brighttalk.com/webcast/9407/72505

1. NowStreet’s Capitalizing on Financial Innovation Webinar Series
Preparing Issuers for equity-based Crowdfunding
April 25th 1pm to 2pm EST
Rewards-based vs. Equity-based Crowdfunding – which is right for your business?
Protect your IP when Crowdfunding
Get compliant for equity Crowdfunding
The “Preparing Issuers for equity-based Crowdfunding” webinar is ideal for any
company seeking to raise capital via the imminent crowdfund exemption as well as any
professional guiding new crowdfund issuers such as investment bankers, investor-
relations professionals, brokers, emerging portals, CPAs and attorneys.
Moderator: Dara Albright, Founder, NowStreet – Panelists: * Liz Kulik, CEO and co-founder of donation-
and equity-based crowdfunding incubator ProHatch; *Mary Juetten, Founder of Traklight; *Ruth Hedges,
CEO of Funding Roadmap

2. Dara Albright, Founder of NowStreet
Twitter: @nowstreet
www.nowstreetjournal.com
dalbright@nowstreetjournal.com
http://facebook.com/nowstreetevents

4. Liz Kulik, CEO and co-founder of donation- and equity-based
crowdfunding incubator ProHatch, will provide:
•Key differences between equity and other forms of crowdfunding,
•An overview of the latest developments in equity crowdfunding,
•Tips for ways issuers can begin preparing for their crowdfunding
campaigns,
•Concrete steps to ensure issuers are ready to hit the ground
running once equity crowdfunding goes live

5. The Challenge
Social impact, business and community
entrepreneurs struggle to find access to capital.
The Solution
Crowdfunding is people to people capital
powered by socially networked broadcasting.

6. Market
Potential
US
$300
Billion
Global
$1
Trillion
% Growth/Year
$ Growth/Year (millions)
Segments
$1,470
61%
72%
115%
91%
274%
Source data from Crowdsourcing.org / Massoultions, Halo Report and National Venture Capital Association
• 40+% of the projects posted on crowdfunding
sites get funded
• 2.84 weeks on average to raise first 25% of
funding goal. 3.18 weeks on average to raise
last 25% of funding goal
Experts Predict $300 Billion market in the US
in donation, reward, equity & lending

8. Does a Crowdfunding Strategy Fit?
Non-financial rewards are offered
in exchange for a contribution.
Returns are experiential & exciting
from thank you notes to pre-sell of
first run production or a cameo role
DONATION
Non-Financial Returns
Tax deductible contributions to
501(c)(3) organizations, All other
business & personal project
contributions from personal funders
are taxable income to the funded
entity, Returns are intangible
Subject to pending SEC regulation, the
general public (accredited and non-
accredited) can invest in the
securities of small businesses and
startups qualified to list on registered
BD/Portals, w/a variety of economic
return strategies including stock sales,
refinancing exits, dividends &
customer-owner discounts
Micro-finance, peer to peer, local bank
lending models prevail, with
conditions for application based on
commercial or impact lending that
range from a structured pay-back
w/and w/o interest over time.
REWARDS
Non-Financial Returns
EQUITY
Financial Returns
LENDING
Financial Returns

9. Title 1
Reopening US Capital
Markets to Emerging
Growth Companies
IPO on-ramp for private cos. w/<$1b revenue, 2 yrs financials,
exempt from Dodd-Frank & financial controls audit requirements,
decreased Sarbanes/Oxley compliance requirements
Title II
Access to Capital for Job
Creators
Lifts Reg. D/Rule 505 & 144A ban on general solicitation and
advertising, allows internet access to accredited investors
Title III Crowdfunding
Registration exemption for start-ups and small companies raising
up to $1m/year/entity
Title IV
Small Company Capital
Formation
Increases the amount of capital that can be raised under a Reg A
exemption from $5m to $50m
Title V
Private Company
Flexibility & Growth
Mandatory threshold for private co registration raised from 500
shareholders to 2,000, as long as less than 500 are non-
accredited
Title VI Capital Expansion
Raises the holders of record numbers required for SEC
registration of non-listed bank or bank holding companies from
500 to 2,000 and lowers the number of holders of record
required for deregistration from 300 to 1,200
Pioneering JOBS Act Legislation

10. INVESTORS
Limited in the amount he or she may invest in the crowdfunding securities in any
12-month period:
• If either the annual income or the net worth of the investor is less than
$100,000, the investor is limited to the greater of $2,000 or 5% of his
or her annual income or net worth.
• If the annual income or net worth of the investor is $100,000 or more,
the investor is limited to 10% of his or her annual income or net worth,
to a maximum of $100,000.
ISSUERS
The aggregate amount sold to “all investors”, may not exceed $1 million in any
12-month period. Transactions made through a broker dealer, or through a
“funding portal” (a new designation under the Securities Exchange Act of 1934)
which meets SEC requirements. Issuers must comply with the disclosure and
other requirements that will be fully clarified when rules are promulgated by the
SEC and FINRA.
Title III Crowdfunding

11. “Must Haves”
 Company must be registered and incorporated in the US
 Names of the Directors, Officers, and any Shareholder with more than 20%
ownership
 Business description and anticipated business plan
 Financial statements with varying levels of attestation depending on the
amount of capital being raised;
• $100,000 or less, tax returns and financial statements certified
by principal executive officer
• $100-500,000, reviewed financial statements
• $500,000 or more, audited financial statements
 Goal for capital raise and target dates
 Planned uses of capital raised
 Share price and methodology for determining share prices
 Detailed information on ownership and capital structure, including terms for
the shares being offered under crowdfunding
 Terms of any other outstanding shares and the differences between those
outstanding and those being offered
 Progress reporting required

12. • Enterprise Model & Implementation Plan
• Entity structure (corporate, 501c3)
o Legal
o Accounting
• IP / online exposure
• Future funding and exit strategies
• Disclosure, Documentation and Due Diligence
• Brand value
• Social marketing commitment
• Content/Story/Digital production
• Follow through (fulfillment, reporting, funder communication)
Consider the Impact of Crowdsourced Capital

13. Prepare for Equity
• Equity, following JOBS Act rules is expected in Q3/2013 to
complete the Crowdfunding donation/reward/equity/lending
capital ladder.
• Equity issuers have time to strengthen offerings and valuation,
develop campaign strategies, and increase networks.
• In the meantime, Rewards based campaigning is an immediate
option that provides capital loyal customers, brand awareness,
media attention, market testing, etc. directly with consumers,
and without sacrificing ownership.

42. Thank you for participating in the webinar. To listen to a replay
please visit: https://www.brighttalk.com/webcast/9407/72505
We also hope to meet you in person at the 2nd Annual Crowdfunding
Convention & Bootcamp
www.crowdfundingroadmap.com/bootcamp
Save $25 use the coupon code: nowstreet