CROWDFUNDING CANNABIS - TIDAL WAVE OF OPPORTUNITY
Crowdfunding Marijuana - Cashing in Together
CROWDFUNDING - GET A PIECE OF THE MARIJUANA BUSINESS
Crowdfunding is a way to raise money in small amounts from a large number of people.
"To get your arms around this, last year the global online crowdfunding industry raised $5.1 billion for thousands of cash strapped businesses, charities, and startups." Forbes Magazine
What and the ins and outs of crowdfunding and how can I use it to fund my marijuana business? On the hand, as an investor, maybe you're really, really sick of Wall Street and those too big to fail investments. Instead, people are turning to the real free market system. With crowdsourcing, you can invest in an upstanding, achieving member of the community who's put out a very interesting crowdsourcing investment opportunity.
Interesting Conjectures about Crowdfunding from Field Agent Blog - The Center of the Mobile Audit & Research Universe
The Crowd gets to the truth…fast and accurately On the game show Who Wants to Be a Millionaire?, the audience’s accuracy rate outperformed that of the experts, 91% to 61%.
The Crowd does really good work For 9 straight years Doritos commercials have ranked in the top 5 of USA Today’s Ad Meter rankings for best Super Bowl commercial, ever since the chip-maker began crowdsourcing commercials with its Crash the Super Bowl advertising contest
The Crowd produces fast results Since its launch in 2008, Starbucks has collected more than 216,000 ideas on its website mystarbucksidea.com, an online platform whereby customers share ideas on everything from beverages to ambiance, payment to social responsibility.
The Crowd is big…and it’s everywhere. In June 2014, Apple CEO Tim Cook reported there were over 9 million registered app developers and 1.2 million iOS applications on his company’s App Store.
The Crowd can tackle a wide variety of tasks In 2013 alone, the federal government crowdsourced over 85 prize competitions to find creative solutions to vexing governmental challenges, from improving astronaut gloves to blocking unsolicited “robocalls.”... more..... a very cool read
CROWDFUNDING AND YOU - THE ENTREPRENEUR OR INVESTOR
Crowdfunding is the same as selling stock in a company to people that think your idea could make them a profit. By accepting money through crowdfunding, you're selling a part of the business to a crowd of investors. The amount of funding gathered from crowdsourcing ranges from a few thousands to millions of dollars. Below, a Canadian company raised a cool million dollars through crowdfunding. Bear in mind that this group has a staff of Ph.D.'s and board that contains high profile pharmacologists.
With the current regulations of controls, checks and balances for monitoring corporate transactions, transparency in crowdsourcing done properly might be vastly superior ,and honest - as compared to your Forbes 500 lot, riddled with people you can't trust as far as you can throw them. Drain the swamp.
Certainly, with crowdsourcing as with any form of business, there will be scammers, grifters and confidence men. You want to invest in someone with a track record or someone who is competent and stable. You want to check out the offering, who are the principles, have they been around for a while?, are their friends reals or have they incorporated a bunch of people into their fold who are suckers and don't' really know them?
"In 2013, equity-based crowdfunding raises 40 times more per company than any other type of crowdfunding in the marketplace." Massolution Crowdfunding Industry Report
Investor Presentation new cannabis cultivars for disease-specific actions
There are three basic types of crowdfunding.
accredited investors that view private investment opportunities secure website
businesses to raise an unlimited amount of capital from an unlimited number of accredited investors
non accredited investors to participate in securities offerings
Crowdfunding is a regulated process. There are more regulatory requirements for companies that allow crowdfunding by unaccredited investors. Crowdsourcing portals are regulated and follow regular business laws, which includes provisions for modern internet practices.
In the United States,an accredited investor has a net worth of at least one million US dollars, excluding primary residence, or has an income of $200,000 each year the last two years. An unaccredited investor has less than amounts listed above.
EXAMPLES OF CROWDFUNDING IN THE MARIJUANA BUSINESS
Veritas Pharma successful achieved crowdsource funding in 2016 through a newly created crowdsourcing engine called Bay Street Cannabis.
Bay Street Cannabis launched Canada's first crowdfunding portal in March of 2016. Bay Street Cannabis (BSC) was created by a prestigious market dealer registered for operation in Canada, BSC's idea is to provide a new legitimate avenue for growth and expansion capital to the rapidly expanding cannabis business sector.
BSC is the brainchild of ?Ascenta Finance Corp. a private, independent Canadian institutional investment bank headquartered in Vancouver, British Columbia. Ascenta concentrates on financing and aiding emerging small-cap companies and focus ranging from $1 million to $25 million.
Veritas Pharma is a small research company based out of Vancouver, British Columbia. Veritas needed a few million dollars to fund its latest tranche of research; selective breeding of cannabis that yield a specific cannabinoid profile, certain quantities of THC, CBC, CBG, CBN and select terpenes.
"I think we are quite unique in the industry, in that we are more concerned about the actual spectrum of cannabinoids, in terms of a biological effect. Leading Veritas to patent and protect a results-proven strain, making us distinct in the industry." Dr. Lui Franciosi CEO
Veritas is led by a small management team with elite expertise in pharmaceutical sciences and medicinal marijuana. Veritas seeks to meet critical needs for authentic science to support and further many not so well founded claims about the efficacy of medicinal cannabis. Our mission is to develop and commercialize the most effective cannabis strains. Veritas Cannabis clinical development pipeline includes:
- Chronic Pain (e.g. cancer pain)
- Nausea & Vomitin
- Muscle Spasms
- Post-Traumatic Stress Disorder (PTSD)
OBLIGATIONS IN CROWD SOURCING - FINANCIAL ACCOUNTABILITY
Crowdsource businesses are obliged to provide timely financial data that relates to their shareholder's investment. These days, there is web based applications that provide the information to everyone, from the chairman of the board to the holder of but one share in a company, all on a need to know basis.
An example of such a company is... KoreConX is a free all-in-one solution that helps companies navigate the process of raising equity capital, and simplifies shareholder communications to reduce risk. Our secure, integrated and efficient platform is a multi-tool for companies to properly organize, manage, and share corporate information. We help companies stay transparent with shareholders, and create good will.
CROWDSOURCING FOR THE SMALL GUY
Interestingly, the so called crowdfunding space in the U.S. has not yet seen entrance of an institutional investment firm, but this will likely change. Right now, it is the small guy can go to a number of legitimate equity crowdfunding sites with offerings and platforms and various donations-based crowdfunding websites.
Their networks give access to 1000s of accredited investors, many with prior investments in this sector. CFC is a leader in equity based crowdfunding providing site development, logistics and back office support to new and existing registered broker dealers. .... is led by industry experts in online capital funding that understand federally and state laws in equity funding relating to the marijuana industry.
136 funded companies
average funding about $70,000
625+ investor members
$2.400,000+ raised for legalization
“I, personally, am very excited about participating in the Cannabis industry. Many business opportunities have been and will continue to be created in this new market with the best yet to come. CannaFundr.com will be the premiere gateway for accredited investors to access and invest in these opportunities. I look forward to you joining us in supporting America’s next great industry.” Randy Shipley - Crowdfund Connect founder and CEO
TYPES OF CROWDFUNDING
Regulation D (Reg D) is a Securities and Exchange Commission (SEC) regulation governing private placement exemptions. Reg D allows usually smaller companies to raise capital through the sale of equity or debt securities without having to register their securities with the SEC.
In 2014, CannaFundr, the first cannabis investment crowdfunding platform was launched by CrowdFund Connect. CannaFundr is open to accredited investors and syndicates investments so that investors can participate for a minimum investment of $2,500.
JOBS Act, Regulation A+ Offering
Allows companies to raise up to $50 million in public offerings. Med-X, Inc. produces cannabis-related products, became the first cannabis company to launch a Regulation A+ equity crowdfunding campaign. Med-X has raised over $1 million from over 600 investors to date.
SMALL EQUITY, DONATIONS AND REWARDS - CROWDFUNDING
A number of cannabis-specific rewards and donation campaigns have enjoyed varying degrees of success. Crowdfunding platforms include Indiegogo, Kickstarter and Go Fund Me, which allow cannabis-related fundraisers of all shapes and sizes to fund everything from the deadly serious to the inane.
WHAT YOU NEED TO SEE IN EQUITY (SHARES) CROWDSOURCING OFFERINGS - MANAGEMENT SOFTWARE FOR FISCAL RESPONSIBILITY
Stakeholders are individual investors or managers of the crowdsourcing organization. Stakeholders must be provided with information on budgets, spending, assets, liabilities and profits on a timely basis as set forth in the prospectus (shares agreement).
Must be able to access investment information in the company (shares, options, warrants, loans) associated documents and financial reports on a timely basis.
BOARD OF DIRECTORS
The organization must keep a minute book, with a schedule of meetings, assigned tasks, and corporate affairs. Companies you want to invest in use automated software that keeps all these basic records in order - ready to present to investors, regulators and the tax man.
Custodians of the minute book, manage and share securely contents without losing the integrity of the documents.It is a good idea for any crowdsourcing company to use a certified expert program (CEP). It is a simple way to keep all in order and develop the company.
An officer manages, organize and report/share company public and confidential info. Done properly, everyone has a need to know access and the correct platform to collaborate.
The correct documentation platform and upkeep thereof will set the stage nicely for any interaction you need with the law and legal services. The data for who, what, when and how can be quickly be grabbed for whatever legal task is at hand. You will save nothing but time, money, frustration and even the business itself.
AUDITORS AND CONSULTANTS
A compliant and secure business software system will satisfy the routine needs of auditors and consultants, that provide the required information with integrity to shareholders, regulatory bodies, and taxation officials.
SOFTWARE PROVIDERS FOR CROWDSOURCING COMPANY'S NEEDS - EXAMPLE
KoreConX is a company that specializes in software that allows companies to efficiently manage corporate records with essential integrated tools and services. KoreConX says it saves company's time and helps reduce legal fees by having all the required corporate documents proactively organized.
Canada's first one million dollar cannabis business financing through crowd sourcing.
Donation-based crowdfunding is a way to source money for a project by asking a large number of contributors to donate a small amount to it. In return....
Definition of Rewards Crowdfunding
How to, advice on crowdfunding.
Simply put, equity-based crowdfunding allows entrepreneurs to reach investors interested in purchasing equity in their startup or other privately held small business. The three types of crowdfunding are...
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