crowdfund conference in italy

"TRAKLIGHT", "ID YOUR IP", "IP VAULT", and "IP CLOUD" are registered trademarks of The PIP Vault, LLC. © MMXIII The PIP Vault, LLC. All Rights Reserved.

Mary Juetten, Founder & CEOFeb 6, 2014Impact Hub Trieste, ItalyEQUITY V. REWARDS BASED: UPDATE US RULE MAKING

L Crowdfunding Overview

REWARDS BASED:Indiegogo, Kickstarter, Rocket Hub

EQUITY BASED:Federal not yet legal; some intrastate Georgia, Michigan

OTHER:Angel List, Lending Club, Prosper, MicroVentures

Equity/Debt Status

Equity/Security is not yet Legal (Title III)

Rule comment period ended Feb 3rd, 2014

Intrastate live in several states

RULES: 585 PAGES

295 Questions

10 Requirements JOBS Act

1. Registration & Incorporation in US2. Names – Directors, Officers, >20% SH3. Business Description & BUSINESS PLAN4. Prior years Tax Returns 5. Financial Statements6. Use of Proceeds7. Offering Details & Progress Updates8. Share price & methodology (VALUATION)9. Ownership & capital10. Capital (existing, offering & differences)

Rules – FORM C Disclosure

1. Registration & Incorporation in US2. Names – Directors, Officers, >20% SH3. Business Description ONLY4. Prior years Tax Returns 5. Financial Statements ONGOING & ANNUAL

REPORTS6. Use of Proceeds7. Offering Details & Progress Updates8. Share price & methodology (VALUATION)9. Ownership & capital10. Capital (existing, offering & differences)

GAAP Financial Statements

< $100K – CEO$100K to < $500K Review$500K = AUDIT by non-PCAOB but licensed

Certified Professional Accountant (CPA) Firm

Not the same CPA as preparations!

EQUITY is not Easy

Tough requirements include:

Business Plans

Financial Statements

Use of Proceeds

Valuation

Devil in the Details

$XM Valuation/ $X per share price/ Total $XK

Spend: MAKE SELL OPERATE

$XK Now $XK $YK $ZK$XK Next $XK $YK $ZK$XK Then $XK $YK $ZK

$

Valuation Issues

Recent Venture Beat article:

- Employee Stock Options- Key Performance Indicators (KPIs)

IDENTIFY IP

PROTECT IP

PICK A PLATFORM

BUILD SOCIAL CAPITAL

CREATE A PITCH

CROWDFUNDING APPROACH

IDENTIFY IP

PROTECT IP

PICK A PLATFORM

BUILD SOCIAL CAPITAL

CREATE A PITCH

CROWDFUNDING APPROACH

Rewards Based

CHOOSE THE BEST PLATFORM FOR YOU:

• ALL OR NOTHING• % BASED ON TYPE• BE REALISTIC

CAMPAIGN

Rewards:

Campaign

Equity:

Business Plan

Projections

Valuation

`

CREATE PITCH

Infringement!

Education is KEY

INVESTORS

ISSUERS

INTERMEDIARIES

Questions?

Mary Juetten

mejuetten@traklight.com

@traklight

IDENTIFY. PROTECT. SUCCEED.

www.traklight.com