Excited to get started and talk to you About your next round and how to raise Capital my name is Rebecca cassava I'm CEO and co-founder of deal maker which Is an online technology that helps you Raise Capital digitally I was an Attorney in my past life please don't Hold that against me for over a decade And saw some exciting changes come out Under the jobs act that I'm going to Tell you about that have really changed The landscape for you guys who are Building companies and change the Landscape and the way that you can get Your companies funded because at the end Of the day that's what it's all about So I want to start it off and kick it Off in context right the talk of the Summer right now Taylor Swift and her Two are raising over 2.2 billion okay That is the most highest grossing Tour Ever to happen in history how is she Doing that is by engaging with her fans Engaging with her community that is what Has allowed her in this new digital era To make such a profitable tour and you Can use those same Tools in what we're Going to talk about in getting your Company funded Now how is she able to create so much Success with her community she can sell Them anything because she knows her Community so well that is using the Tools we're going to talk about today so

Previously the internet came out that Internet now helps people form online Communities and that together with Social media has created a new era for Community building so previously when You thought about bringing a product to Market the communication was very one Way right you would rent a billboard you Would put an ad in a magazine and you Would try to make it appeal to the most Number of people that you could so that You could sell more of your product now With social media that has dramatically Changed right those communities couldn't Form before because people would see a Billboard they'd consume their product They might tell someone at a cocktail Party but that's really all they could Do to become a community again social Media the way people interact with a Brand is now fundamentally different With influencers and just general Supporters of your product so now people Can gather online and the communication Between your company and its users or Its fans or its Community is two ways When people like a product they post About it and that now becomes more Community engagement that you can Capitalize on So what does that mean it also means That there's even more sophisticated Data available to you about who your Community is who the consumers of your

Product might be and that allows you to Capitalize on that community in a number Of different ways So how do these Trends impact the Capital markets there's a couple of Different things happening online that Are causing some really exciting changes The online buying ecosystem is now over 16 trillion dollars so flashback 10 Years people used to go into bricks and Mortar stores to buy everything more and More people are buying online and that's Making them more comfortable buying new Things online so you've got all your Morning Brews liquidities Facebook news Instagram news people are consuming Their news that way instead of through Print media and finally this is Translating into the rules we're going To talk about people buying shares of Companies online and this ecosystem To be 43 billion over the next number of Years The key Trend that's happened as more Buying happened online is people started Making Investments online so you've got Robin Hood you've got all new tools that People can use to make investments get Knowledge about Investments and drive That in a self-directed way back as Young I know I still look 21. thank you But back when I was young you used to Walk into a bank and you used to meet Financial advisor and they would do your

Risk profile and they will tell you About what you could invest in right no More and now people are reading their Own Financial newsletters they're Investing through e-shares they're Investing through Robinhood and they're Investing through deal maker in the Companies that use our software Another key inflection of this trend is That younger Generations don't trust the Institutions the way they used to right They want to engage across their Generation they want to take advice Across their generation rather than be Told what to do by an institution This is leading to a phenomenon known as Impact investing so people who want to Do good in the world they want to see Good things happen in the world they Also want to make money at the same time This is not you know total charity There's a big difference here but what's Happening with the younger Generations Is they're seeing impact investing as a Better way to make changes in the world Rather than just giving money to a Charity that uses it up that year and Then that money is gone and you have to Give that charity more money you want to Invest in companies that are doing good In the world so three key factors Millennials are driving the change They're investing in companies more than Giving to charity and any hesitation

That exists is simply based on lack of Knowledge people who do this like it and They're doing it again in droves So now we have the legislation changed Many years ago it was back in 2012 and 2015 when the legislation came into Force what happened was Congress saw That the capital markets ecosystem was Quite broken right everyday Americans Could only get into companies after they Had ipo'd which was too late all the Gains we all know this story if you went In on the early rounds of uber you made Multi-thousand X Investments That was Not available to the everyday Americans And so the jobs act changed that It brought into Force some new Exemptions that allowed companies to Raise capital from everyday Americans so You didn't have to be what's known as an Accredited investor anymore you could be Anyone who could in a private company Before its IPO and you could get access To those gains So the two exemptions you should be Aware of that you may want to use are Reg CF and reggae and we've got Nick Over here stand up Nick if you have more Questions later he's the expert on this Stuff if you want to talk to him about Your company your story what you're Doing he can talk to you all about that But the highlights here that I'm just Going to show you reg CF you can raise

Up to 5 million from everyday Americans Right and that 1.6 billion has been Raised under that exemption so we're not Talking about small numbers this is not In its infancy lots of companies are Using this you can get started without a Financial audit and offer whatever kind Of security you want the other exemption You have is reggae you can raise even More up to 75 million that is going to Do a longer Disclosure document you're Going to file with The Regulators There's going to approve it and then you Can start raising digitally under that Exemption 8.2 billion has already been Raised So while this phenomenon and this change In the capital markets is taking place It's also doing some good in the world Which is exciting as I mentioned it's Allowing everyday investors to come in On companies earlier and make money but It's also been incredibly beneficial for Minority Founders so anyone female Anyone of color we are seeing that two Percent of VC investment goes to them Over 30 percent of equity crowdfunding Money goes to them because it's a Digital story it's a much different way Of raising Capital that is having a lot Of benefit for minority founders These are just some of the companies That have used it you may recognize some Of the logos up here if you ever wonder

Why soccer is so popular in Europe a lot Of the teams are fan owned when a team Is fan owned it creates more engagement Green Bay Packers a raise we did last Year did you ever wonder why it's the Strongest brand in the NFL I know that Could be fighting words so I apologize To any other team fans here but if you Look up the statistics very strong brand With Green Bay why fan owned been fan Owned over many many years and you've Got a ton of other logos up here sub Stack recently in the news for doing a 5 Million Community round alongside one of Their series larger institutional rounds They're doing this because there are a Number of benefits for the founders Right number one someone's not handing You a term sheet you're setting your Terms you're setting the security you're Offering the valuation you're offering At and so you have the opportunity to Stay in control of your company longer And keep more of the equity number two It allows you to reach a wider audience Right you can go Global with this and Create a community on all four corners Of the internet wherever you might be Trying to sell your products globally And digitally As you create this community some people Will invest some people won't the people Who come all the way down the funnel and Invest are your super users they're 54

Percent more engaged with your brand We've got folks from the logos on the Other sheet lining up to be beta users We've got a surgical device where people Want to have the robot do knee surgery On them and they're volunteering to be The first tested tons of stories like That where you can create that Engagement with your brand and get all Kinds of benefits and then finally we'll Talk about what's happening in the Capital markets today and if there's one Thing you guys walk away with I want you To remember that this is an option Available to you no matter what's Happening in the capital markets So let's talk about getting your Companies funded I'm a Founder lots of Show of hands how many Founders there Are in the room Right so our number one job yes we've Got to set the vision but we've also got To get the company funded and make sure It doesn't run out of money and I can Tell you from experience I know as I'm Sure a lot of you guys do it always Takes more money than you think it's Going to right so here's some of the Statistics three to five years is the Average time it takes for a startup to Become profitable of those polled in the U.S only 40 percent are actually Profitable so you need to have money Coming in the door you need to have

Options available to you for all the Play that VC investment gets only 23 Percent of the startups in the US are Actually funded that way so many of you I'm sure know that you can go out and You can do a big Road Show and you can End up with a big fat zero at the end of It there are other options available to You and then finally remember that the Largest cause for companies failures is Because they ran out of capital it's the Biggest killer of a company and it's our Number one job as Founders make sure That the company has capital Especially in the last year what we've Seen right is a change in the capital Markets where it's often the case that You as a Founder need to go to market You need Capital when the capital Markets might be drying up and people Are less likely to write checks or if They are they're going to drive a much Harder bargain right they're going to Take 50 percent of your company they're Going to take 3x liquidity prep shares All kinds of terms that really Disincentivize you as a Founder from Pursuing that and so it's important to Remember that there are different Pillars to the capital markets right you Can go to Wall Street you can go to VCS And you can also go to your community And you can build that Community to Raise from

As you build that Community remember That the more you build it the more it's Going to give back to you and it gives Back to you in a number of different Ways yes if there's one thing you want To remember it's a source of capital for You but it's also an important source of Data for you about who is engaging with Your product who loves your product and Where you should be finding more users Also when you do these campaigns you're Going to build a lot of PR and brand Awareness which is money that you want To be spending to build your brand Anyway And then finally remember that number That I gave you 54 more engagement so From the group of super users that you Create you're going to have intense Engagement from that group that can then Go out and tout your brand talk about The benefits of it and spread awareness For you Remember that it's not either or right So I talked about sub stack who did a Portion of the round from a community to Build up engagement with their user base You've got folks like monogram who Raised 60 million dollars over the Course of their life cycle then went Public on the NASDAQ you've got proven Skin care company that was featured on Shark Tank lots of VC investment and Then went out to the community as well

To increase awareness about their skin Care line and get more Champions and Users of their customized skin care Brand So this is kind of what it looks like Again if you want to talk more about it Nick will be at our booth you're Basically setting up a link on your Website on a standalone website anywhere You want to put that link that says an Invest Now button and so the the key is You're making a sale you want to make a Sale of your shares quickly and you want To convert users and you're using a Digital checkout flow in order to do That If you look at the way a raise like this Breaks down I'm going to jump to one of The stats 52 through cardless digital Payments that means credit card people Are buying online they're buying shares They're entering their credit card and Then they're going to become an investor In your company it's not as onerous as You might think you have digital Communication portals you send them Regular email updates they know what's Going on in the company you make sure You put your asks in those email updates And you get back from your community so Miso robotics which is this Digi Robotics company that builds for fast Food chains very cool like frying arms They got a contract with White Castle

Through their Community they put out the Ask the community comes forward with Introductions and they capitalized on That Close to 2 billion closed through our System over 700 issuers have raised this Way and over a million Investments Processed through the system from around The globe so if you want to remember one Thing remember you're not alone in this There's Taylor Swift is building an Enormous Community she knows it well Because she has that Digital Data on who Her people are and what they want from Her and then she gives it to them it's The same way we all look at building a Company today you build that Community You talk to that Community you engage Them with your brand and use them as Well as a source of capital Any questions My question can you hear me yeah uh it's Regarding the what's the typical Incorporation of a company raising Capital with you are they llc's s-corps Usually C Corps like Delaware California And New York But it could be anything Thank you Any other questions Yeah so I noticed on there um you were Showing some of like the different SEC Regulations so how do you guys handle That is that something you handle

In-house do you have referrals for it And then Um also you know on a on a tax and I'm Sure you have a lot of questions about That like how does that work with deal Maker for your clients So we Let me make sure I understand the Questions how does it work with the Regulations you're going to have a Lawyer who's going to help you through The process for sure our company will Handle the technology we have a licensed Broker dealer which is a requirement for These so really you're going to need an Auditor a lawyer and deal maker Does that answer it It's not as simple but you it's a robust Ecosystem you want to have a lawyer we Know lots of the ones who specialize in This keeps the legal fees down they do It at cap fee rates that really helps Streamline the process then using a Lawyer who is not a specialist at it Thanks for the presentation uh in your Experience VC is more likely or less Likely to invest in a crowdfunded Company I think there's a lot of talk about that I think we see the question did everyone Hear the question are VC is going to be Less likely to invest in a crowdfunding Company we've definitely seen it happen I know there can be a lot of talk about

That they don't want to for folks that Are worried you can put the investors in A separate entity instead of directly on The cap table that can alleviate a lot Of the concerns you can also put them in A non-voting class so I'd say there's Ways around it what they really want to See is not so much over complexity in The cap table and I think the ecosystem Is way further than where it was five Years ago when that was really a concern The technology is built out to handle The communications and everything that Would need to happen with the community That you built What kind of calls are associated with Starting a crowdfunding program So it depends on what stage the Company's at and how you want to go About it if you're really early stage You can talk to Nick about what the Different choices you have are but you Can list on a portal at little to no Cost or if you want to set up your on Online store that's going to lead you to Raise more money closer to the 5 million Mark and then you're going to invest in The digital marketing costs so upfront Fees you're you're looking at you know 50 000 and then you're going to spend on The campaign as well Any more questions Can startups in Dubai raise money this Way for reg CF so if we go back to the

Exemptions for reg CF you need to have a U.S head office and for reggae you need To have a North American head office so There has to be some tangential Connection to the U.S Congress doesn't Want foreign companies coming in taking Americans money and then leaving What sort of accountability is put on Organizations that raise this money and Then you know go out of business don't Really produce a product don't fulfill Their objectives that they put out there You have to do ongoing disclosure on On what we've seen especially through The shareholder communication portals That we've built is investors understand And are generally supportive as long as You're communicating with them you tell Them what's good you tell them what's Bad you tell them what they need you Have to be upfront about that as you do With any Institutional Investor as well And they get it Any more questions All right thanks everyone look forward To seeing you at the booth if you have Any more questions or here is our Contact info thank you [Applause]


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