Firm client Zero Cheating has now crossed $500k in commitments in its Reg CF round on the Wefunder platform.
Zero Cheating is a fully automated online proctoring service. I need your investment to stop cheating during online exams. Its lead investor is on the faculty at Yale.
Congratulations Zero Cheating!
Learn more and invest here: https://wefunder.com/zero.cheating
By Jossey PLLC
Jossey PLLC performed paid legal services for this raise
Ben Franklin was a remarkable man. In his life he assumed many roles that won public acclaim, including successful businessman, publisher, inventor, statesman, and revolutionary.
But whilst those roles may be familiar to the public, his role as a fundraiser may not. Ben Franklin helped raise money to create many adored institutions that still stand today including the University of Pennsylvania and the Philadelphia library.
But one fundraising project he didn’t lead yields lessons for modern startup founders seeking capital. Recounted from his autobiography, after just having successfully raised money for Philadelphia’s first hospital, a Reverend approached Franklin for his help in raising for a meetinghouse.
Franklin, wary of wearing out his welcome through constant solicitation, demurred. The Reverend then asked for his investor list, he again refused on the same grounds. Finally, he was asked for advice, this he readily granted:
In the first place, I advise you to apply to all those who you know will give something; next to those whom you are uncertain that they will give you anything or not, and show them the list of those who have given; and lastly, do not neglect those who you are sure will give nothing, for in some of them you may be mistaken.
After taking Franklin’s advice, the Reverend obtained a “much larger sum than he expected, with which he erected the capacious and very elegant meetinghouse that stands in Arch street.”
Another Franklin fundraising habit was to “prepare the minds of the people by writing on the subject [of the fundraise] in the newspapers.”
These strategies align perfectly with the modern age. Regulation Crowdfunding [Reg CF] allows founders to raise capital just as Franklin did. To “prepare the minds of the people” founders should “test the waters” or gauge interest in the raise beforehand, by securing pre-commits.
Second, they compile their list of likely and unlikely investors. In modern parlance, these are the founder’s ambassadors: people who believe in the founder, their team, and their company. These ambassadors don’t necessarily have to be big investors. If they are willing to post the raise on their social-media accounts to increase visibility, they are meaningfully helping.
Founders that apply Franklin’s methods by compiling lists, selecting ambassadors, and testing the waters will likely have successful raises, even if they aren’t founding Ivy League institutions or public libraries.
Interested in raising capital? Sign up for a free 30-min consultation. https://www.thecrowdfundinglawyers.com/cfl-scheduler/
By Jossey PLLC
Firm client Musiversal, the world’s 1st remote recording studio and end-to-end music production platform just closed their Reg CF round on the Wefunder platform. The company raised over $330k from nearly 300 investors around the world.
Congratulations, Musiversal!
By Jossey PLLC
Jossey PLLC performed paid legal work for this raise.
Reg CF Q1 numbers hold steady despite economic turmoil
The New Year has seen bank failures, stubborn inflation, rising interest rates, and pullback from venture capitalists. But financial positions worsen, equity crowdfunding (Reg CF) keeps rising as a preferred capital-raising method for early-stage companies. Although, down somewhat from the COVID boom, Reg CF issuers continue to raise at a healthy clip despite growing economic caution.
In every economic measure Reg CF issuers enjoyed a steady first quarter to 2023. Crowdfund Capital Advisors (CCA), which curates Reg CF data reports:
The healthy numbers come despite the big money pullback embodied by the Silicon Valley Bank collapse, perhaps the largest bank for venture capitalists. This may bode well for Reg CF according to CCA’s Sherwood Neiss, “This will be the first true test of the industry’s ability to substitute the role of Venture. While the need for Venture Capital will never disappear, a void has been created in the marketplace . . . Now we will see if, in fact, a startup’s community can play the role of VC.”
Over the next few years, crowdfunding will keep trending up. According to Fortune Business Insights, the global crowdfunding market currently valued at $1.41 billion in 2023 and will more than double by 2030 to $3.62 billion.
Why?
A Microventures blog cites the COVID pandemic and Gen Z preferences:
[T]he COVID-19 pandemic helped accelerate the adoption of crowdfunding as a fundraising method, as $214.9M was raised via equity crowdfunding in 2020, representing growth of 105% from 2019. With many businesses struggling to access capital during the pandemic, crowdfunding platforms emerged as a valuable source of funding, helping companies to quickly and efficiently raise the capital they needed. . . .
This shift towards crowdfunding can also be attributed to the changing investor landscape. Younger generations, such as millennials and Gen Z, have shown a greater interest in impact investing, and are more likely to invest in companies that align with their values and beliefs. Crowdfunding provides an opportunity for these investors to support companies that are making a positive impact, and to have a voice in the companies they invest in.
By Jossey PLLC
Schedule a free 30-minute consultation with my firm here: https://www.thecrowdfundinglawyers.com/cfl-scheduler/
Firm client Musiversal’s Reg CF raise is live on the Wefunder platform and has already secured over a half-million in commitments!
Musiversal provides music creators with professional music recording and consultancy services, helping them turn their musical ideas into fully formed productions. They have a roster of music professionals, currently 33 in number from 10 different countries, who offer more than 200 different instruments and services, from individual instruments like piano and cello to services like mixing, mastering, audio editing and production advice.
Learn more about Muisversal and invest here: https://wefunder.com/musiversal
By Jossey PLLC
Jossey PLLC performed paid legal work for this raise.
thecrowdfundinglawyers.com founder Paul H. Jossey will speak in a webinar on March 8, 2023 about how equity crowdfunding (Reg CF) can help capitalize franchises.
Jossey will be joined by David Lee, founder of www.publicraise.com and franchise lawyer Schuyler Reidel of the Reidel law firm.
Attendees will learn how they can start or expand their franchise goals using equity crowdfunding including: (i.) basics of crowdfunding portals; (ii.) legal aspects of Reg CF; and (iii.) franchise law specifics.
Sign up for the webinar here: https://publicraise.com/free-webinar
By Jossey PLLC
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