Hatch OSB June 2015

The Community Public Offering

A New Way to Engage Markets (& Investors) in Oregon and Beyond

Photo here

Who are we?

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Kristin Wolff Hatch Board Member (& business owner, policy analyst) @kristinwolff #socinn #socent #unjobs #workoutloud #startup #realchange

Simon Love Hatch Operations Manager & CPO Guru @thesimontist @hatchthefuture @hatchoregon #communitycapital #socent

Hatch in 30

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We help citizens launch enterprises that

improve communities.

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2008 2008

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Trust in things “big” (“Houston, we have a problem.”)

9%

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Just in…

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Trust in “small”

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The Emergence of “the Crowd”

First, as “backers...”

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And now, as investors.

HATCH OREGON -  Law (& its evolution) - HatchOregon.com

Platform (investing) -  InvestOR Ready

(CPO) Accelerator -  Investor Meetups - Data/Stories/

Lessons

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Investing directly in the kinds of businesses you want to

see in the world is awesome.

Audrey Eschright: “We need to build businesses that share power.” @recompilermag

Congratulations! You’re a (potential) investor!

(C) 2014 Hatch Innova;on 13

Investors (you, yes, you)

–  Must be ‘natural persons’ –  Must be Oregon residents –  Due diligence is on you –

you, yes you, are the risk assessor

–  Maximum investment is $2,500 per company

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Entrepreneurs!

– You choose the terms – Can choose equity (stock), debt (loans),

convertible notes, royalties, etc. – Maximum raise $250k – Company must be based in Oregon

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And know this…

– Angels don’t care about this – Neither do VCs – Neither do most banks

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(Fine with us.)

Open Source Investing?

HatchOregon.com •  Transparency •  Information •  Investing!


Let’s compare...


CircleUp/AngelList Hatch Oregon Kickstarter

For-profit 501(c)(3) Nonprofit For-profit

Real investing Real investing Donating/Pre-Selling

USA Oregon only Everywhere

Any size business Small businesses only Anyone

*There is no initial charge to apply to CircleUp. If approved to be listed on the site, CircleUp will generally assess a commission based on a percentage of the total amount raised. Our commission is intended to be generally consistent with what companies pay to investment bankers in the offline world for similar size fundraising rounds.

$50/mo + credit card fees

5% + credit card fees

Accredited investors only

Any Oregon resident can invest

Anyone can donate

Let’s make this real: Stuart’s Story

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The Deal

•  Equity (10% of company) •  Preferred Stock •  Annual shareholder meetings

(“there will be ice cream”)

•  So far….$75,000 •  Goal of $120,000…will you invest?

Big Fans

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Amongst our fans…


Questions?

(While we’re chatting, use your phone to register as an investor at HatchOregon.com)


Early (small “n”) Lessons

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§  Crowdvesting is not Kickstarter – investors are not just backers or early-adopter customers. They actually want a relationships with companies.

§  For many small businesses, It’s not just a tool of last resort.

§  When entrepreneurs set the terms, they can be pretty creative (and some investors kind of like this….(e.g. Agrarian Ales).

§  First-time investors come back for more – they are investing in more than your product or your company, they are investing in you, your values, and the idea of local investing.

§  You have to have your communications ducks in the row, but the process of identifying, engaging, and securing investors could not be more different than the Angel/VC path.

Hatch OSB June 2015

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