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MySocialGoodNews is dedicated to sharing news about
social entrepreneurship, impact investing, philanthropy
and corporate social responsibility.

Crowdfunding for Social Good

Devin D. Thorpe

Devin Thorpe

Impact Investing

This category includes articles about people, firms and foundations that invest in social good by investing in social entrepreneurs, social impact or pay-for-success bonds, etc.

National Small Business Association (NSBA) Appoints Dealstruck As Exclusive Lending Partner

San Diego, Calif. and Washington, DC – January 29, 2014 – Dealstruck, Inc, announced today that it has signed an exclusive agreement with the National Small Business Association (NSBA) to provide NSBA members with valuable benefits and resources, including small business lending products and services. The Dealstruck crowdlending platform is now the business advocate’s preferred lending solution, available to the small- to medium-sized businesses (SMBs) that comprise the NSBA’s membership.

The NSBA already offers many valuable benefits and resources to its members, including federal advocacy for small business, healthcare plans for its members, and discounts on small-business products and services.

“NSBA is excited to have this exclusive partnership with Dealstruck, which addresses the critical need by smaller firms to have access to capital,” said Todd McCracken, President of the NSBA. “NSBA members will now have access to assistance in finding the right loans at loan terms that work for them, quickly and safely. We were approached by several alternative lenders, but found Dealstruck uniquely positioned to best serve our members, which are established and healthy companies looking to continue their growth efficiently and responsibly. Together, the NSBA and Dealstruck can now jointly provide support and resources to businesses to help them overcome these challenges.”

“Dealstruck is thrilled to be chosen as the crowdlending partner by one of the leading advocacy groups for small businesses, the majority of which are underserved and largely in need of healthy loan options,” said Ethan Senturia, co-founder and CEO of Dealstruck. “We look forward to providing NSBA members with fair, transparent and affordable capital to enable them to better compete in today’s marketplace. Our role as the exclusive provider means we will be able to develop financial education and loan programs tailored specifically to the needs of its membership base.”

Dealstruck is committed to educating the small business community on affordable business line of credit programs, flexible financing solutions and access to working capital options. The company is practiced in setting businesses on the path to becoming bankable.

About Dealstruck

The Dealstruck lending marketplace connects profitable, small- and medium-sized businesses with innovative credit solutions funded by individual and institutional accredited investors. Unlike the one-size-fits-all approach offered to them by banks and the high-cost, short-term credit offered to them by alternative lenders, Dealstruck provides growing small businesses with a suite of products that give them a credible and transparent path to bankable. Dealstruck is the first crowdlending platform to offer multiple products to small- and medium-sized businesses and to allow investors the freedom to choose specific investments. For more information, please visit https://www.dealstruck.com/.

About NSBA

Celebrating more than 75 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA’s 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.nsba.biz.

Nomacorc Launches First Plant-Based Wine Bottle Closure Using Braskem’s Green Polyethylene

ZEBULON, N.C. (January 28, 2014) – Nomacorc, the leading producer of alternative wine bottle closures, is the first to create a plant-based closure, Select® Bio, using Braskem’s I’m greenTM Polyethylene. Green PE is made from sugarcane ethanol, a 100 percent renewable material. Its major advantage is the fact that it is made from raw materials derived from renewable resources, which helps reduce greenhouse gas emissions. I’m greenTM Polyethylene not only removes CO2 from the atmosphere due to its renewable feedstock but also contributes to reducing the use of fossil fuel. For each ton produced, “green” polyethylene sequestrates more than 2.0 tons of CO2, a significant gain compared to traditional polyethylene*.

Select® Bio closures are 100 percent recyclable. The closures mirror Nomacorc’s current Select® Series portfolio in oxygen management performance. As with other Select® Series products, Select® Bio minimizes the environmental impact of wines by preventing spoilage and waste from wine faults such as oxidation and reduction. By consistently delivering the right amount of oxygen into the bottle using a carbon neutral closure, sustainability-minded wineries will now be able to deliver their wines just as they intend.

“Braskem is a strong organization with a history of creating reliable, sustainable polymer materials for leading manufacturers around the world,” said Dr. Olav Aagaard, Nomacorc’s principal scientist. “By using Braskem’s sugar-cane based green polyethylene, we can confidently offer to our customers a carbon neutral wine closure which will not only be consistent and optimal for their wines, but also now allows them to create a more sustainable packaging solution.”

Braskem has been making I’m greenTM polyethylene since 2010 in its Triunfo Plant in the state of Rio Grande do Sul, in the south region of Brazil. The plant’s capacity is 200 kton/year and the total investment amounts to U.S. $290 million. Using agricultural products as a sustainable alternative to fossil fuel to produce materials has great potential in Brazil. Brazil has approximately 330 million hectares of arable land of which 67% is in use. Sugarcane cultivation uses 9.2 million hectares which is highly concentrated in the state of Sao Paulo (which is located more than 1,200 miles (2,000 kilometers) from the Amazon region). Expansion of sugarcane fields is highly regulated to be done in a sustainable way. Brazil is producing annually more than 8 billion gallons (30 billion liters) of bio-alcohol of which only 2.3% is used to make I’m greenTM polyethylene.

“Braskem is excited that Nomacorc, the global leader in wine closures, has chosen Braskem’s I’m greenTM Polyethylene to develop a more sustainable wine closure solution. With this, Nomacorc is showing its leadership position in the market and their drive to innovate in developing more sustainable solutions for their customers,” said Marco Jansen, Braskem’s Renewable Chemicals Commercial Director for Europe and North America.

ABOUT NOMACORC

Nomacorc is a worldwide leader in wine closures and the No. 1 closure brand for still wines in many countries including France, Germany and the United States. Dedicated to technological innovation, Nomacorc manufactures its portfolio of products using a patented co-extrusion process. As a result, Nomacorc closures provide consistent, predictable oxygen management and protect against off-flavors due to oxidation, reduction or cork taint. Nomacorc’s 100 percent recyclable products are available through a vast network of distributors and sales agents on six continents. With 500 employees worldwide and state-of-the-art manufacturing facilities in the United States, Belgium, China and Argentina, Nomacorc produces more than 2 billion closures annually. Working with renowned wine research institutes worldwide, the company leads the wine closure industry in fundamental and applied research into oxygen management in wine. For more information, visit nomacorc.com or follow Nomacorc on Twitter (@Nomacorc) and Facebook (Nomacorc).

ABOUT BRASKEM

Braskem is the largest producer of thermoplastic resins in the Americas and the world’s leading biopolymers producer, manufacturing green polyethylene from sugarcane-based ethanol. With 36 industrial plants in Brazil, the United States and Germany, the company produces over 35 billion pounds of thermoplastic resins and other petrochemicals per year, creating more environmental-friendly, intelligent and sustainable solutions through chemicals and plastics that improve people’s lives.

Braskem is a component of the Dow Jones Sustainability Index Emerging Markets, the Carbon Efficient Index (ICo2) and the Corporate Sustainability Index of the BM&FBovespa – Securities, Commodities and Futures Exchange. Braskem is a member of the United Nations’ platform for more sustainable industries and its sustainability annual report is rated level A+.

Braskem America is the leading producer of polypropylene in the United States, with five production plants located in Texas, Pennsylvania and West Virginia, and a Technology and Innovation Center in Pittsburgh. Headquartered in Philadelphia, Braskem America is a wholly owned subsidiary of Braskem S.A. For more information, visit www.braskem.com

*based on Braskem cradle to gate Eco efficiency analysis done by Fundação Espaço Eco, 2007

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Media Contacts:

Katie Myers

1-214-766-4566
kmyers@nomacorc.com

Whitney Rigsbee

1-919-460-2274
wrigsbee@nomacorc.com

Stacy Torpey

1-215-841-3194
stacy.torpey@braskem.com

The US SIF Foundation Releases New Sustainable Investment Guide for Foundations

Report documents current trends in sustainable investing among foundations, provides practical resources

WASHINGTON, DC – Today the US SIF Foundation released Unleashing the Potential of US Foundation Endowments: Using Responsible Investment to Strengthen Endowment Oversight and Enhance Impact.

The report, using extensive data from primary and secondary sources, assesses the current range and state of foundation involvement in sustainable and responsible investing (SRI). It suggests that the number of foundations engaged in SRI, often employing such terms as mission-related investing and impact investing, has been growing in the last few years.

The guide encourages foundations to adopt SRI strategies in order to have tools, in addition to grantmaking, with which to generate positive impact and to fulfill their fiduciary duties. It profiles a number of foundations whose approaches to SRI—including shareholder advocacy at publicly traded companies and investments in vehicles supporting community development, land conservation and other sectors— have resulted in meaningful environmental, social or corporate governance (ESG) outcomes. Another strategy foundations employ is to consider ESG criteria in addition to traditional financial indicators when selecting companies for their portfolios. Many of the foundations profiled in the guide provide background on the process they followed—with staff, trustees and consultants—to develop or update their responsible investing policies and procedures.

The report concludes with a list of practical steps that foundation staff and trustees can take to help their institutions align a broader portion of their assets with their programmatic or broader institutional goals. To assist these first steps, an extensive appendix of resources provides links to:

  • organizations offering assistance in sustainable and responsible  investing, including such specialties as impact investing, community investing and shareholder engagement;
  • research papers on SRI and financial performance and on fiduciary duty for foundations; and
  • investment policies, proxy voting guidelines and case studies of several foundations that are active sustainable and responsible investors. 

US SIF Foundation CEO Lisa Woll said: “This guide provides compelling examples of foundations that have made the commitment to utilize their endowments for positive social and environmental impact. We hope that the information and tools provided in this report will motivate many more foundations to follow their example.”

The US SIF Foundation is grateful to The J.A. and H.G. Woodruff Charitable Trust, Jessie Smith Noyes Foundation and Goodfunds Wealth Management for their generous support of this report.

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The US SIF Foundation is a 501c3 organization that undertakes educational, research and programmatic activities to advance the mission of US SIF. The US SIF Foundation offers an online course on the Fundamentals of Sustainable and Responsible Investment, a resource for investment advisors, financial planners and other financial professionals who want to learn the basics of sustainable and responsible investment.

US SIF: The Forum for Sustainable and Responsible Investment is the US membership association for professionals, firms, institutions and organizations engaged in sustainable and responsible investing. US SIF and its members advance investment practices that consider environmental, social and corporate governance criteria to generate long-term competitive financial returns and positive societal impact. US SIF’s members include investment management and advisory firms, mutual fund companies, research firms, financial planners and advisors, broker-dealers, banks, credit unions, community development organizations, non-profit associations, and pension funds, foundations and other asset owners. Learn more at www.ussif.org.

Contact: Megan Smith, msmith@ussif.org, 202-747-7820

Lutheran World Relief and Margaret A. Cargill Foundation Assist 100,000 Farmers in West Africa

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Grant from Margaret A. Cargill Foundation Builds on LWR’s Successful Resilience Plus Model

Baltimore, January 28, 2014 – Lutheran World Relief (LWR) has received a $1.5 million grant from the Margaret A. Cargill Foundation to scale up community-based resilience building work in Niger, Mali and Burkina Faso. The project, “Community Led Food Crisis Recovery in the Sahel,” will run through January 2016.

During the last four years, the Sahel region of West Africa has experienced three severe food crises due to poor rains, inflated food prices and limited pasture for animal grazing. These food crises force poor families to sell land, livestock or other assets, go into debt, and limit food consumption just to survive, creating a cycle of food insecurity.

LWR’s successful “Resilience Plus” program in West Africa takes a long-term view, prioritizing community recovery and resilience even during an immediate crisis response. By bridging the delivery of humanitarian assistance with sustainable development approaches, the program lays a foundation to break the recurring cycle of low agricultural productivity and low farm incomes and has already helped make more than 300,000 people less vulnerable to future food shortages.

The grant from the Margaret A. Cargill Foundation builds on this success and enables LWR to reach more than 100,000 additional farmers in the Sahel region.

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The project, which runs through January 2016, addresses the underlying factors contributing to persistent poverty and food insecurity by providing livestock such as goats and sheep, and training farmers on their care; helping farmers access certified seeds for staple crops like millet, sorghum and cowpeas; training farmers on improved crop production techniques; providing short-term opportunities to earn income by contributing labor to soil and water conservation projects such as terraces, trenches and stone walls; building warehouses for crop storage; and training farmers on business and marketing skills and helping them access financial services.

“We know this approach works – we’ve seen it improve countless lives in West Africa,” said Jeff Whisenant, LWR’s interim president and CEO. “It’s possible to break the cycle of extreme poverty, and this grant from the Margaret A. Cargill Foundation will help to do that by investing in making communities more resilient.”

WHO IS LWR? Lutheran World Relief, an international nonprofit organization, works to end poverty and injustice by empowering some of the world’s most impoverished communities to help themselves. With partners in 36 countries, LWR seeks to promote sustainable development with justice and dignity by helping communities bring about change for healthy, safe and secure lives; engage in Fair Trade; promote peace and reconciliation; and respond to emergencies. LWR is headquartered in Baltimore, Md. and has worked in international development and relief since 1945.

Lutheran World Relief is a ministry of U.S. Lutherans, serving communities living in poverty overseas.

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Media Contact:

Emily Sollie, 410-230-2802 office, 443-220-3269 cell, esollie@lwr.org

Crowdentials Launches Best-in-Class Investor Accreditation API and Announces Key Partnerships

Growing equity crowdfunding compliance provider attracts the attention of investors, crowdfunding platforms.

Cleveland, OH (PRWEB), January 21, 2014 – Crowdentials (http://www.crowdentials.com), a leading provider of investor accreditation and equity crowdfunding compliance software, today announced the official launch of its API solution for crowdfunding platforms to help companies, investment firms and other issuers seamlessly verify investor accreditation status. Two crowdfunding platforms, AlumVest and GroundBreaker, have already signed on as early adopters of the Crowdentials technology.

Crowdentials designed its software to bring transparency and efficiency to the tedious investor verification process required for companies that solicit investment capital from investors under the JOBS Act. With privacy being a key concern for individuals, the company utilizes provisions from the U.S. Securities and Exchange Commission (SEC) that allows an investor’s CPA, broker or investment advisor to verify status on their behalf. Crowdentials’ white-label API solution and services include maximum protection of investor information, early detection of suspicious applications and automation tools to provide seamless investor support. The company also offers a “pre-accreditation” service for investors to verify their status through its website, which can take as little as an hour.

“After the SEC’s general solicitation rules went live, we canvassed the market and were very excited to find a partner in Crowdentials, which offers an innovative way to comply with the SEC’s new general solicitation rules with no requirement for investors to provide their confidential personal information,” says Lynn Chen, CEO of AlumVest, an equity- and rewards-based crowdfunding platform connecting entrepreneurs from leading U.S. universities with their alumni investors.

Crowdentials Co-founder and CEO Richard Rodman worked with CTO Max Heckel and CDO Rohan Kusre to develop a program that goes above and beyond the minimum “reasonable” steps outlined by regulators. “As an entrepreneur, I recognized the inherent obstacles in getting attention and funding for new ventures. We don’t believe that platforms and issuers should be weighed down by legislation that ultimately affects the quality of deal flow. Crowdentials covers the most ground in the verification process to give investment platforms and businesses peace of mind in a highly scrutinized regulatory environment,” says Rodman.

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“Crowdentials’ software lets us focus on our core business and grow it knowing that Rich and the Crowdentials team are taking care of an important aspect of our operations,” according to Stefano D’Aniello, a securities attorney by trade and the co-founder of GroundBreaker, an equity-based real estate investment platform. “We were impressed and found Rich to be very knowledgeable, and we’re confident that his services will match our growing and evolving needs.”

Crowdentials is a graduate of the FlashStarts accelerator program founded by noted entrepreneur and angel investor Charles Stack, who launched the first online bookstore. The company intends to introduce bad actor checks and Title III unaccredited investor crowdfunding tools pending the finalization of SEC regulations.

About Crowdentials

Crowdentials is a provider of regulatory compliance tools for equity crowdfunding and private placement platforms that help companies efficiently manage their financial compliance. Crowdentials’ investor accreditation service eases the burden of complying with the JOBS Act by offering platforms a “plug-and-play” white-label API option and pre-accreditation services for investors. Investors are able to verify accredited status without disclosing personal financial information.

106 Remarkable and Resilient High School Students Awarded $21,000 through 2014 Horatio Alger National Scholarship Program

Celebrating more than $100 million in need-based scholarships, the Horatio Alger National Scholarship Program recognizes young men and women from across the United States and Canada who have demonstrated exceptional perseverance to achieve educational success 

WASHINGTON, D.C. (January 6, 2014)Horatio Alger Association of Distinguished Americans, Inc., a nonprofit educational organization honoring the achievements of outstanding individuals and encouraging youth to pursue their dreams through higher education, today announced the 106 recipients of its prestigious 2014 Horatio Alger National Scholarships. These annual scholarships recognize outstanding students, who, in the face of great adversity, have exhibited an admirable commitment to continuing their education and serving their communities.

Since the establishment of its scholarship programs in 1984, Horatio Alger Association has awarded more than $100 million in undergraduate, graduate and specialized scholarships to students from across the United States, including all 50 states, the District of Columbia and Puerto Rico, and Canada. The Horatio Alger National Scholarship Program is one of the nation’s largest privately-funded, need-based financial aid programs, and in 2014 alone, the Association will award $9 million to its National Scholars.

“Horatio Alger Scholars possess remarkable strength and resilience,” said David Sokol, chairman of Horatio Alger Association. “We are immensely proud to support these young people who have not let adversity or financial need hinder their pursuit of a good education. Horatio Alger Association is confident of their success and proud to assist as they seek to share in the American Dream.”

Scholars come from households with an average income of $15,000 per year. These students average a 3.8 GPA and a mean SAT score of 1,684, which is more than 100 points above the national average. Each deserving recipient is awarded $21,000 to apply toward the tuition of the college or university of their choice. Additionally, National Scholars will have access to a variety of resources including assistance for the selection of and preparation for college, access to guidance and crisis counselors as well as mentoring programs.

A full list of Horatio Alger Association’s Class of 2014 National Scholars is available here.

“I am honored and privileged to be part of an organization that is providing comprehensive support to brave and intelligent young men and women,” said Tony Novelly, President and CEO of the Horatio Alger Association. “Our Scholars have an intense desire to succeed even as they face incomparable odds. My fellow Members and I strongly believe that our scholarship support is truly an investment in America’s Future.”

Each new National Scholar will also receive an all-expense paid trip to Washington, D.C. where they are invited to attend the Association’s annual three-day event. Here, the Association will induct 12 new Members – ranging from CEOs to philanthropists to a former United States Ambassador – in addition to recognizing the 2014 National Scholarship recipients. During these events, Scholars will learn more about the Association and the various support programs in which they can take partake. Additionally, they will have the opportunity to meet and learn from the Horatio Alger Members – all of whom are elite business, civic and philanthropic leaders who, like the Scholars, have overcome significant adversities. It is the Members of the Association who wholly support the National Scholarship Program through private donations.

For more information about Horatio Alger Association and its 2014 National Scholars, please visit https://www.horatioalger.org.

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About Horatio Alger Association of Distinguished Americans:

Founded in 1947, the Horatio Alger Association of Distinguished Americans, Inc., fulfills its mission of honoring the achievements of outstanding individuals who have succeeded in spite of adversity and of encouraging young people to pursue their dreams through higher education. Horatio Alger Association supports students through annual undergraduate and graduate need-based scholarships and mentoring programs across the United States and Canada. Since 1984, the Association has awarded more than $100 million in college scholarships to deserving young people. For more information, please visit www.horatioalger.org.

Crowdlending Platform Dealstruck Announces Seed Funding

Company appoints VP operations, sets plans to develop additional financing products for SMBs

San Diego, Calif. – January 17, 2014 – Dealstruck, Inc., the first crowdlending provider to provide multiple financing products, announced today that it has successfully closed a $1.2 million seed-stage investment round. Southern California-based angels filled the round.

The seed round represents the first funding for Dealstruck and will enable the company to enhance its online platform, build out its underwriting team, offer additional products to its already growing borrower population, and streamline the company’s technology for institutional and accredited individual investors.

CEO Ethan Senturia co-founded Dealstruck when he saw that small businesses struggled to secure financing and was limited to highly selective banks or costly alternative fast cash alternatives. Dealstruck’s technology helps those businesses stuck in the middle to graduate to consecutively healthier financing options over time. To date, Dealstruck features “Crowd-Loan,” a term-loan product and “Crowd-Line,” an asset-based, working-capital line of credit.

“It’s easy to endorse a crowdfunding platform and an asset-based line of credit for growing small businesses that aren’t yet bankable,” said Giles Raymond, investor. “Dealstruck is uniquely positioned to meet the unmet needs of millions of profitable SMBs across their financing lifecycle, while offering investors compelling opportunities and increased control.”

In addition to its funding announcement, Dealstruck has appointed Rudy Navarro as the company’s Vice President of Operations. Previously Executive Vice President at Capital Partners, the largest factoring company in the nation, Navarro will lead Dealstruck’s efforts to streamline and automate the underwriting, documentation and compliance process.

“Building on the momentum from our newly expanded line of capital finance products for the unmet market, we’re thrilled to announce our seed round as well as Rudy’s appointment,” said Senturia. “Our support by experienced experts keen on pioneering the future of finance options for profitable small business is exciting and inspiring. We look forward to funding many new loans and receiving Rudy’s contribution to our own growth during this next quarter.”

Winner of the Best Pitch award at San Diego Tech Coast Angel’s 2012 Quick Pitch Competition, Dealstruck launched its funding marketplace in June 2013 and has quickly expanded its team and product line to meet growing market demand. To learn more about the company and its SMB credit products, please visit www.dealstruck.com.

About Dealstruck

The Dealstruck lending marketplace connects profitable, small – and medium-sized businesses (SMBs) with innovative credit solutions funded by individual and institutional accredited investors. Unlike the one-size-fits-all approach offered to them by banks and the high-cost, short-term credit offered to them by alternative lenders, Dealstruck provides growing SMBs with a suite of products that give them a credible and transparent path to bankable. Dealstruck is the first crowdlending platform to offer multiple products to SMBs, and the first to allow investors the freedom to choose specific investments. For more information, please visit https://www.dealstruck.com/.

W.K. Kellogg Foundation Applauds House of Representatives On Spending Bill With Key Early Childhood Education Investments

Carla D. Thompson, vice president – program strategy, issued the following statement:

The passage of the $1.1 trillion omnibus spending bill by the House of Representatives is welcome news for children and families. For too long, the threats and impacts of federal budget sequestration have left many of the children most in need without access to early childhood education and have eroded short- and long-term economic security for families and communities.

This bipartisan agreement will alleviate some, but not all, of the harmful impacts of sequestration on children and families. This legislation comes at a particularly meaningful time for our nation – just one week past the 50th anniversary of the declaration of the War on Poverty.

For the first time in a long time, Congress is making much-needed investments in our nation’s littlest learners through early childhood education. The Head Start program, including Early Head Start (EHS) and EHS-Child Care partnerships, will receive more than $1 billion in this legislation – $600 million above the amount needed to eliminate sequestration cuts, upon Senate approval.

We’ve long recognized the benefits of investing in children early to allow them to realize their fullest potential. Starting at birth, children are profoundly shaped by the social, cognitive and physical conditions of their environment – of which early learning is just one part but one which is so integral to all aspects of a child’s development.

Early childhood education programs can produce strong academic and economic outcomes, help close the achievement gap and give all children a fair chance at success. And that work must also foster connections between educational programs and other efforts in the areas of food, health and family economic security.

Our investments in education and learning are grounded in strong economic research and are most effective because they have been developed in partnership with communities. Investments in early childhood education have helped to overcome racial and economic barriers for families across the country – and are critical components in eliminating the vicious cycle of poverty.

We know more work needs to be done, but that this investment is a great start – and we look forward to continued progress and investment in this issue.

We applaud Congress for its leadership in making these investments in the nation’s future. We hope the time of sequestration, government shutdowns and political standoffs is over. Attention should now be paid to ensuring our nation’s children and families have the best chance to succeed.

About the W.K. Kellogg Foundation

The W.K. Kellogg Foundation (WKKF), founded in 1930 as an independent, private foundation by breakfast cereal pioneer, Will Keith Kellogg, is among the largest philanthropic foundations in the United States. Guided by the belief that all children should have an equal opportunity to thrive, WKKF works with communities to help break the cycle of poverty by removing barriers based on race or income that hold back children, so they can realize their full potential in school, work and life.

The Kellogg Foundation is based in Battle Creek, Mich., and works throughout the United States and internationally, as well as with sovereign tribes. Special emphasis is paid to priority places where there are high concentrations of poverty and where children face significant barriers to success. WKKF priority places in the U.S. are in Michigan, Mississippi, New Mexico and New Orleans; and internationally, are in Mexico and Haiti.

Contact:

Wade Nelson

312-835-5317
Wade.Nelson@wkkf.org

New Report Signals Potential For Crowdfund Investing

  • Crowdfund Capital Advisors launches first of its kind report “How Does Crowdfunding Impact Job Creation, Company Revenue and Professional Investor Interest?”
  • Authors confirm early signals that crowdfunding leads to job growth, stronger companies and follow on investor interest

Miami, Florida | 15 January, 2014 – Crowdfund Capital Advisors (CCA) today launched a report that illuminates market signals emanating from crowdfunding. The reports uncovers how companies that use crowdfunding as a means to raise capital are creating jobs, building stronger businesses and attracting follow on capital.

According to Sherwood Neiss (@woodien), principal at Crowdfund Capital Advisors, “When we set out to write this report we wanted to test a big assumption about crowdfunding. Namely is it more than just money? The results, which are early indicators, show that in fact it is.” Some of the key findings in the report include:

  • Companies that were success with crowdfunding campaigns saw a 24% quarter-to-quarter increase in revenues net of crowdfunding proceeds.  Filtered for only equity campaigns, they saw a surprising 351% quarter-to-quarter increase
  • 39% of the responders hired on average 2.2 employees and an additional 48% signaled they intended to used the crowdfunding proceeds to hire new staff.
  • 71% of companies that were successful with crowdfunding either received or were in conversations to accept follow on investment.
  • Other than money key benefits from the crowd during and post campaign included knowledge, experience, strategy, marketing, product position and demand.

The report’s authors identify these positive signals as an initial verification that debt and equity crowdfunding, when it fully goes live in 2014 will have a tremendous impact. Jason Best (@CrowdCapAdvisor), Principal at Crowdfund Capital Advisors and a co-author of the report adds, “These are still early days for crowdfund investing. It is exciting to see Web 3.0, where the social network meets community finance, develop in front of our eyes. We hope this evidence further encourages global policy makers, regulators and investors to take note of this opportunity and consider this new asset class to enhance current efforts to train and support entrepreneurs in their markets.”

Crowdfund Capital Advisors has been the global thought leaders on crowdfunding investing having written the framework to legalize debt and equity based crowdfunding in the United States. Their principals were at the White House as President Obama signed the JOBS Act into law. They are also the authors of the World Bank Report, “Crowdfunding’s Potential for the Developing World.” Richard Swart, Research Director for CCA said, “By analyzing campaigns globally we were able to get an early view into the potential crowdfunding not only has for the USA but globally. By leveraging the power of the crowd we can help fund the next generation of entrepreneurs.”

Crowdfunding is attracting global interest as a simple but transformative concept. Someone proposes a business, charitable or creative project on a crowdfunding website. If convinced, tens, hundreds or even thousands of individuals commit relatively small amounts of capital to support the idea or business. Taken together, these contributions are significant enough to turn the idea into a commercial reality.

Crowdfund investing is the newest and potentially most powerful model for crowdfunding: instead of donating money, investors receive a debt instrument or an equity share in the business.

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