Regulation Equity Crowdfunding - Final

8/19/2019 Regulation Equity Crowdfunding - Final

1/24

Equity Crowdfunding

akaRegulation Crowdfundin

aka

Reg CF Crowdfunding

Overview


2/24

Presenter Bio

• Casey Barach• BS, JD, MBA

• SVP, Tri-ED

• Director, KIN@NKY

• UTech Acce!erator Pro"ra#, $o%n&er

• UTech $%n& I ' II, $o%n&er• Kent%c(y An"e! Ta) Cre&it, A%thor

• E*%ity Bac(e& Entrerene%r


3/24

JOBS ActTimeline

Ari! +, . J%#start /%r

B%siness Start%sAct 0J/BS Act1

Sete#2er 3,.3 4enera!

So!icitation 0Tit!eII1

J%ne .5, .+ 6e" A7 0Tit!e

IV1

Jan%ary 5,.8 6e" C$

0Tit!e III1

M"#

CF $'au


4/24

O*er*iew of +Crowdfundi

Reward)Crowdfunding

Equity FundingCrow

-latform) Kic(starter An"e!9ist, See&In:est $%n&

.(o Can -lay/ E:eryoneAccre&ite& In:estors

/n!y;E

Regulatory/ None 6e" D 6

.(at Are 0ouBuying/

Prototye o= Pro&%ctSec%rities >/?nershi

Se/?

A!so 9en&in" 2ase& Intrastate 6oya!tyy2ri&s


5/24

Equity Crowdfundingig(lig(t)

;9o? cost< #ass #ar(et =%n&raisin" otion

A!!o?s a co#any to %2!ic!y =%n&raise % to .M

E)an&s the oo! o= otentia! in:estors

9i#its in:estor in:est#ent a#o%nts

SEC 6e*%ire#ents $or#s, $inancia!s, A&:ertisin", An

6eorts


6/24

%m2act 3 .(y do yocare/


7/24

%m2act 3 .(y do yocare/ T?o 6easons

Ne? #eans o= raisin" caita!

E)an&s the oo! o= otentia! in:estors


8/24

45S5 %n*e)tor -o2ulationAccredited %n*e)tor .orld6

F

Gesti#


9/24

45S5 %n*e)tor -o2ulationEquity Crowdfunding %n*e)tor .o

Gesti#

H8F


10/24

Equity CrowdfundingT(ree -layer)

$%n&in" Porta!G

G/n!ine Bro(er-Dea!ers or $%n&in"Porta!s

In:estoCo#any


11/24

Equity Crowdfunding%n*e)tor)

•Se!= Accre&itation Inco#e, Netorth ' In:est#ents to Date

•6esa!es restricte& =or one year

• In:est#ent a#o%nt !i#its


12/24

Equity Crowdfunding%n*e)tor %n*e)tment 'imit)

Deter#ine Ann%a! Inco#e an& NetorthG

I= either- ., or

!ess

4reater o= , or+F o= the !esser

I= 2oth o:er .,

.F o= !esser

Gsa#e &enition as 6e" D


13/24

%n*e)tor %n*e)tment 'im

%n*e)tor

Annual%ncome

%n*e)tor 7et.ort(

'e))er

Calculation

3, .+, 3, 4reater o= , or +F o= 3, 0.,+

.+, , , 4reater o= , or +F o= , 0,

.+, ., ., .F o= ., 0.,1

, 5, , .F o= , 0,1

.,,

,,

.,,

.F o= .,,0.,1, s%2Lect to ., ca

Se!= Accre&itation 2y In:estor

Inco#e, Net orth ' In:est#ents A#o%nts


14/24


$%n&in" Porta!G

In:estoCo#any



15/24

Equity CrowdfundingCom2any

•

9i#it - .M in ro!!in" . #onths•M%st %se a $IN6A aro:e& =%n&in" orta! 0one at a ti#

•/n!y US entities

•B%siness P!an re*%ire&

•SEC $or# C

•B%siness Na#e

•$inancia!s 0 Years1•/erin" In=or#ation

•$o!!o?in" $IN6A aro:a!, . &ays 0coo!in" o erio&

•/n"oin" Ann%a! 6eort, inc!%&es nancia! reortin"

•A&:ertisin" !i#its - =act%a!


16/24

Equity CrowdfundingCom2any Financial 8i)clo)ure Require

Rai)ing 91##:or 'e))

Rai)ing 91##: to9;##:

Rai)ing 9;##:91M


17/24

Rai)ing 91##: or 'e))

The co#any #%st ro:i&e nanciastate#ents certie& 2y the e)ec%ti:e

ocer o= the iss%er to 2e tr%e an&co#!ete in a!! #ateria! resectsO


18/24

Rai)ing 91##: to 9;##

The co#any #%st ro:i&enancia! state#ents re:ie?e& 2y a

%2!ic acco%ntant that isin&een&ent o= the iss%erO


19/24


20/24


$%n&in" Porta!G

In:estoCo#any


Equity Crowdfunding


21/24

Equity CrowdfundingFunding -ortal)

•M%st 2e $IN6A re"istere& an& aro:e&

•Ser:ices oere& ?i!! ran"e =ro# 2asic to a&&e& s

•May 2e a =orei"n entity

•May recei:e cash an&>or e*%ity as co#ensation

•M%st ro:i&e in:estors ?ith e&%cationa! #ateria•M%st ro:i&e co##%nication channe!s =or &isc%s

oerin"s on the orta!

•May not oer in:est#ent a&:ice or #a(e reco#


22/24

E


23/24

-otential %))ue)

I#!e#entation &atesE)enses9e"a!

Acco%ntin"

Porta! ' Porta! Ser:ices

No oo!in" o= 99Cs

Porta! re*%ire#ents

$%t%re nancin" i#act


24/24

Than( Yo%Casey Barach

casey@n(yinno:ationOor"
mailto:[email protected]:[email protected]

Regulation Equity Crowdfunding - Final

Documents