Crowdfunding

Ward and Smith crowdfunding team works with all players in the crowdfunding ecosystem to help them maximize the benefits and minimize the risks associated with building a crowdfunding presence.  We can advise:

• A company or entrepreneur seeking capital on choosing securities exemption pathways; combining multiple offerings; deal terms; disclosures; platform selection; marketing services selection; and investor verification
• Platforms and funding portals with registration requirements; compensation restrictions; compliance issues; Terms of Service; and branding
• Investors on using crowdfunding to avoid dilution; how to become lead investors; and crowdfunding exit strategies

What is Crowdfunding?

In its broadest sense, crowdfunding is a way to use technology to raise funds for a business, a project, or a cause.  Instead of dealing with a financial institution or specific investors or donors, the company, nonprofit organization, or individual raises money from the “crowd.” Some crowdfunding campaigns sell securities.  Other crowdfunding campaigns solicit donations and pre-orders.  If you are familiar with GoFundMe, KickStarter, Indigogo, or Lending Club, these are all examples of platforms that utilize crowdfunding.

Why work with Ward and Smith?

We offer four key benefits:
Experience: Our team offers more than 20 years securities experience, and five years crowdfunding experience. We helped draft the laws and regulations that made crowdfunding possible in North Carolina.
Ecosystem: We are “system integrators” combining business, technology and legal advice for turnkey capital raising solutions.
Options: Our team can integrate crowdfunding with traditional financing solutions.
Deal Size Agnostic: We know crowdfunding can benefit for a company looking to raise as little as $50,000 to as much as $50 million in capital.

If you are considering crowdfunding, you’ll want to know the answers to these questions:
-What are the best platforms for different types of offerings?
-Should I use a platform or sell through other means?
-What marketing firm should I use to sell my offering?
-How do I get the biggest bang for my marketing bucks?
-How do I combine crowdfunding with other types of capital raising efforts?
-How much will offerings cost?
-How do I become a Lead Investor in crowdfunding offerings and how are Lead Investors compensated?
-How can I use crowdfunding to avoid dilution?
-How can investors use crowdfunding to exit investments?
-Can I use crowdfunding to sell my business?
We can help.

We can also connect you to additional service providers that can support your offering.  We work with:

• Depositories and escrow agents on compliance and forms
• Marketing companies with advice on compliance with and, if appropriate, avoidance of broker-dealer and investment adviser registration requirements; avoiding fraud; fees; and other compliance issues
• “White Label” licensors on compliance requirements and license agreements
• Economic Development agencies and business associations on educational programs; recruiting lead investors; recruiting platforms; and developing your own regional or industry-specific platforms