Intrastate Crowdfunding: Raising Capital from the Community

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Intrastate Crowdfunding Raising Capital from the
Community
David Dupee, Founder CEO
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Intro to Crowdfunding

• Rewards (kickstarter) emotional connection, try
  new products
• Accredited investors (CircleUp) financial return
• Retail/general public (CraftFund) Packers Plus
  mix of emotional and financial

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Intrastate Crowdfunding Probably Wont Fund Next
Facebook

• Not clear how VCs and other institutional
  investors will view crowdfunded companies
• Adverse selection institutional investors
  already focused on certain verticals
• Tech and certain B2B companies might not meet
  test to qualify as company doing substantial
  business in WI (80 of assets, revenue, and
  offering proceeds come from in state)

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Intrastate Crowdfunding Likely Works Best for
Main Street Biz

• Consumer and place-based businesses have added
  marketing incentive to build brand advocates
• Investments easier to understand and do due
  diligence on
• Millennials key demographic
• Future investor class 75M
• Already familiar with crowdfunding
• Different approach to investing

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What the Limited Data on Investment Crowdfunding
Shows

• U.S. Title III of JOBS Act yet to take effect.
  Other exemptions used to allow general public to
  invest online
• intrastate guitar company, brewery
• Reg A real estate
• UK. Investment crowdfunding legal for 3 years
  with consumer products as one of the strongest
  categories

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Sound Familiar? BrewDog Example

• Scottish brewer raised nearly 4M by turning
  12,000 fans into shareholders

Our strategy has always been to try to shorten
the distance as much as possible between
ourselves and the people who drink our beers.
-BrewDog
Very quickly it became clear that the excitement
was as much about belonging somewhere as about
money. - Harvard Business Review
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What Does this Mean for WI?

• Getting ahead of the curve 10 states have since
  passed similar law
• Economic development
• Restaurants largest private sector employer in
  state
• Food and beverage manufacturers account for 10B
  in revenue and key driver of tourism
• Attract and retain millennial workforce

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David Dupee, Founder CEO CraftFund
LLC www.craftfund.com david_at_craftfund.com _at_CraftFu
nd _at_CraftFundWI