How funding portals can reduce CAC & CIC:

Peter Rostovsky Peter Rostovsky
Posted at 8/14/2023

Cost of Investor Acquistion

Creating institutional capital investment pools with funding portals is hugely important. Honeycomb Credit has trailblazed that with a foundation. You can go to pension funds, banks, insurance companies, credit unions, etc with these kinds of proposals. Point to HoneyComb's success story, differentiate your portal.

Side-note: would love to start seeing partnerships between niche portals.

If you aren't ready to do that yet, and are starting off with founders in your direct network, I would fill your relevant social media channels (that you send to people) with accessible and engaging demos of your product from the investor's perspective. Of course, content for business owners is important too... but think about it this way: fundraising businesses will be sending your social media content to their investors as to explain how the process is going to go.

Educational content on why your niche and portal serve a critical need. Explain to investors, why their investm...more

Categories: Equity (RIC)  |  Featured  |  Funding Portals  |  Impact Investing  |  Investor Education  |  Issuer Education  |  Reg CF  |  Regulations & Compliance
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How we calculated Raiseway's Global Total Addressable Market

Raiseway
Posted at 7/28/2023

Disclaimer: (1) the issuer is considering an exempt offering, but has not decided upon any particular exemption; (2) the issuer is not soliciting any money or other consideration and, if sent, will not be accepted by the issuer; (3) the issuer will not sell securities or accept commitments to purchase securities until the issuer decides on which exemption it will pursue and satisfies any required filing, disclosure or qualification requirements; and (4) all indications of interest made by solicitees are non-binding.

To calculate Global #TotalAddressableMarket, we needed to understand how much Raiseway will charge users in each country.

We developed a global parity-pricing model to figure that out.

According to our most recent calculations, our yearly Annual Recurring Revenue (ARR) in the US will be $575, accounting for churn.

(^This isn't exactly right, we need to update the model. When we do, the TAM numbers will move by a n million, not sure which direction. 🤡 )

 

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Categories: Accounting  |  Impact Investing  |  Investor Education  |  Issuer Education  |  Reg CF  |  Regulations & Compliance
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Our industry is broke

Raiseway
Posted at 7/27/2023

Dear colleagues at Crowdfunding Professional Association and beyond. We all love saying that the industry is doing great.

Math says "that's bs; CF industry is broke and dealflow is the problem." I am using funding portal data because transparency is forced upon these intermediaries.

Please don't shoot the messenger. I would like to be proven otherwise.


There are 70,000 startups in the United States within 33,000,000 small businesses. How many active Regulation Crowdfunding deals are there right now? 450.

Let's say that the average salary for a portal employee is $75,000 ($6 250 per month). Sounds like an OK living in the U.S. (unless you are in New York, San Francisco, Los Angeles, etc).

I went onto each of their LinkedIn pages and counted the number of employees. I assumed - rather generously - on average, only 50% of these "employees" are paid. The rest are advisors, investors, partners, etc.

I tried to count how much money each of the platforms will have left after receivi...more

Categories: Equity (RIC)  |  Featured  |  Funding Portals  |  Reg CF  |  Regulations & Compliance
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Decoding the Alphabet Soup of Investment Crowdfunding

Andrew Savikas Andrew Savikas
Posted at 6/6/2023

The investment crowdfunding landscape can be confusing.

And one of the main reasons it's so confusing is because many of the key terms and labels were created by lawyers and legislators, who aren't really known for their ability to keep things simple. 

That means navigating and deciphering the nearly inscrutable alphabet soup of the relevant crowdfunding regulations, rules, laws, and requirements is about as much fun as …. well, navigating and deciphering an alphabet soup of laws, rules, and regulations.

So before trying to parse the fine print of crowdfunding regulations, here’s some overall context that should help.

In 2012, the Jumpstart Our Business Startups Act (get it? “JOBS”? Isn’t that clever…) was signed into law, and it did two important things:

  1. Amended the Securities Act of 1933 (that's the set of laws passed after the 1929 stock market crash)
  2. Required the SEC to update several of its Regulations

It’s helpful to think about crowdfunding regulations...more

Categories: Investor Education  |  Issuer Education  |  Reg A+  |  Reg CF
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Reg CF and Reg A Industry Summary - April 2023

KingsCrowd
Posted at 5/10/2023

In April 2023, the online startup investing market (Reg CF and Reg A) experienced a slight downturn, with a total of $48.3 million committed across equity and debt deals, compared to $82 million in March. Wefunder maintained its position as the top platform for dollars invested, with $20.2 million coming from equity Regulation Crowdfunding (Reg CF) offerings.

The most popular industry for the month was Business Services, Software, and Applications, which attracted $8.2 million from Reg CF equity offerings. A total of 243 equity deals closed in April, consisting of 238 Reg CF deals and five Regulation A deals.

However, the number of new deals going live saw a decline, with only 103 new deals in April, down from 146 in March. Despite this slowdown, online startup investing remains an essential avenue for businesses to secure funding and for investors to discover promising opportunities.

For detailed monthly analytics covering the Reg CF and Reg A markets, check out KingsCrowd's market an...more

Categories: Reg A+  |  Reg CF
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Investment Crowdfunding Is a Powerful Tool for Building Local Capital

Devin Thorpe Devin Thorpe
Posted at 3/29/2023

This post was originally shared on Superpowers for Good.

Regulated investment crowdfunding is a powerful tool for building local capital in your neighborhood or town.


There are three perspectives I’ll discuss here:

  1. Investor perspective

  2. Entrepreneur perspective

  3. Community leader perspective

For clarity, whenever I talk about crowdfunding today, I’ll be referring to the regulated investment crowdfunding on websites like Wefunder, Republic and Start Engine—and dozens of others. I’m not talking about GoFundMe or even the popular rewards crowdfunding sites Kickstarter and Indiegogo.

That said, there may be no better way for an entrepreneur to prepare for an investment crowdfunding round than to conduct a rewards campaign. We’ll talk about that another day.

Investor Perspective on Building Local Capital Via Crowdfunding

If you are an adult living in the United States, you are eligible to invest directly in local businesses via crowdfunding. The only barrier between you
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Categories: Equity (RIC)  |  Investor Education  |  Issuer Education  |  Reg CF
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CfPA Commuity's thoughts on RaiseWay's Crowdfunding Campaign Management Toolkit

Peter Rostovsky Peter Rostovsky
Posted at 3/28/2023

Hi everyone! Together with my co-founder - Josh McSorley - and we are building a tool to make investment crowdfunding easy for businesses raising capital.

In this 3-min Loom Video I cover our task manager view.

What do you think? Thank you so much to everyone who shares their thoughts! In the next videos we can cover:

  • AI Campaign Assistant
  • Investor Relationship Manager
  • Funding Portal Selector

Click here to join the early access waitlist here - alpha version shall be released on April 15th!

I would sincerely appreciate it if you shared this with any business looking to raise capital with crowdfunding on a tight budget.

Thank you,

Peter Rostovsky

Co-Founder & CEO of RaiseWay

Member of BoD of CfPA

 

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Categories: Accounting  |  Equity (RIC)  |  Featured  |  Issuer Education  |  Reg CF  |  Regulations & Compliance
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Boxabl: CfPA Crowdfunding Issuer Interview Series

Crowdfunding Professional Association (CfPA)
Posted at 3/16/2023

Boxabl is an American housing construction technology company based in Las Vegas, Nevada. It was founded in 2017 by Paolo Tiramani, Galiano Tiramani and Kyle Denman to supply accessory dwelling units (ADUs). It is among the most successful companies to have benefited from regulated investment crowdfunding having raised over $160 million. This interview was conducted with Galiano Tiramani.    

INTERVIEW

CfPA: Can you tell us a little bit about your company? What does your company do and at what stage is it?

GALIANO: Boxabl operates factories that produce a new kind of housing. We have technology that we believe will allow us to mass produce housing on a scale and for a cost that was never before possible. Our goal is to dramatically lower housing costs for the world.

CfPA: What's the market in which you see your company operating?

GALIANO: Our initial product is a small studio apartments. After that we will roll out a system of room modules that stack and

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Categories: Issuer Education  |  Reg A+  |  Reg CF
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