ALTERNATIVE FINANCECrowdfunding

An Overview With Gary O. Shelton

Crowdfunding IN 2015The new normal for small business finance

INTRODUCTION:Gary O. Shelton was recruited at 12th Annual Auto Industry Summit, after a national research to: Develop strategy for Rainbow PUSH’s new initiative Help Tier 1 suppliers improve their minority supplier

development programs Provides support to major national companies in the area of

supplier excellence-diversity Customize the development of the program to fit the client’s

unique needs

The Supplier Excellence-diversity Program is designed to:

Assist the sponsoring agency to increase spend with diverse companies;

Expand the base of well-qualified suppliers Expand the base of well-qualified suppliers familiar with

emerging technologies, such as Solar Support the efforts of prime contractors to find well-qualified

subs Support community small business outreach as part of a

corporate responsibility plan

DISCLOSURE

§ This presentation should not be considered in any way an offer to buy or sell a security.

§ Buying or selling a security involves substantial risk. Investors could lose some or all of the original investment. Seek professional advice before you make any investment.

§ This presentation is for informational purposes only.

§ Securities offered through JCC Advisors. Member FINRA/SIPC.

Gary O. Shelton

What is Crowdfunding?

Google defines it:

crowd・ fund・ ing ˈkroudˌfəәndiNG/

The practice of funding a project or venture by raising small amounts of money from a large number of people via the Internet.

Categories of Crowdfunding:

Art, Comics, Dance, Design, Fashion, Film & Video, Food, Games, Music, Photography, Publishing, Technology, Theater.

Jumpstart Our Business Start-upsAPRIL 2012

The 2012 JOBS Act enabled both accredited and unaccredited investors to use the Web and social media to make investments in entrepreneurs…-FungInstitute.Berkeley .edu

Crowdfunding market is growing fast…

» 2012:

Crowdfunding platforms raised $2.7B (an

81% increase) >1 million campaigns

» 2013:

Global Crowdfunding tops $5.1B

Crowdsourcing.org/Massolution

$ 2.7 B

$ 5.1 B

Note: BY comparison Reg D private placement market in 2012 raised $800 billion in capital --

CF is already a very crowded space…Did Someone Say ‘Dot-com-land?’

Crowding up the old rapids…

Break-even

Struggling

Succeeding

Crowdfunding

The 4 types of Crowdfunding

Need to repay

Don’t need to repay

Lending

based

Equity based

Donation

based

Reward

based

4 CF Platfor

m group

Cost $ = APR rates: 6% - 35%*Good Credit Score* Kiva = 0% interest loans

• Cost $ = 4% to 9%(plus 3% escrow)• Postage, Taxes, Time

AccreditedInvestors(high networth)

1 create cf application/campaign

Which type of Crowdfunding should I use?

Reward/ Donation

Seeking <

$50k

Cost:4%-9%

Cost: APR

6% - 35%

Seeking

> $50k

Equity/Lending platforms

Choices:• Start-up company vs existing company• Specific Project Funding• Need for Newco Capital

Reward/Donation

“All or Nothing”5% (+3% CC

Fee)

Notable Equity CF Leaders

List Of Crowdfunding Platforms

Platforms Top 10 Equity Crowdfunding Websites For Startups

Top 5 Crowdfunding Sites for Gamers

Top 6 Crowdfunding Sites for Artists and Bands

5 Crowdfunding Platforms For Mobile Apps

Top 6 Personal Cause Fundraising Websites

Top 10 Crowdfunding Sites for Nonprofits

10 Best Kickstarter Alternatives

.com

Is Crowdfunding your future?

Gary O. SheltonContact Information:

Telephone no.:

 1-213-858-6612

Web:

 www.garyoshelton.com