Signed into law on April 5, 2012 by President Obama, crowdfunding provides reduced costs and opens additional sources of capital to the entrepreneurial and small business community by allowing them to leverage the power of social media. The industry has seen explosive growth in recent years. In their May 2013 report, industry analyst Massolution reported an 81% growth rate for 2012, predicting $5.1 billion in worldwide volume for 2013. With prominent investors such as Google Ventures, Donald Trump, Reid Hoffman, Mike Maples, Michael Birch and Tim Ferriss joining the crowd, the opportunity becomes even more apparent.
A market in hyper-growth, with no sign of slowing down and an audience eager for resources creates the perfect storm for businesses looking to connect and offer resources to the small business community.
With A&E, CNBC, and Yahoo launching crowdfunding TV shows similar to Shark Tank, crowdfunding is dominating the news cycle. The Securities and Exchange Commission is set to release rules for Title III crowdfunding this year and people are hungry for meaningful education and content related to crowdfunding. Seeing an opportunity to produce a high-quality web-based summit that provides the small business community access to the world’s leading minds on crowdfunding, the CrowdFunding World Summit 2013 was born.
Timeline of Important Developments
Spring Street Brewery started by Andy Klein posts a small public offering on it’s website, and the SEC issues a release allowing companies to post IPOs online.
Direct IPO platform founded by Mark Perlmutter to let the general public invest in hot IPOs – this is a precursor to crowdfunding.
OffRoad Capital begins online roadshows of private offerings to accredited investors after raising $50 million from VCs.
Andy Klein announces Wit Capital Broker Dealer will sell IPOs online to the general public and raises $36 million in its own IPO.
Silicon Valley VC Tim Draper raises $300 million for MeVC a public venture firm which allows the general public to invest in early tech deals alongside VCs.
ArtistShare launched by Brian Camelio isthe first successful platform for fans to pre-fund albums of bands.
Australian Small Scale Offerings Board (ASSOB) allows general public to invest (and by 2013 raises $132 million for 200 companies).
Michael Sullivan coins the term “crowdfunding” in his blog: fundavlog.
Grameen Bank founderMuhammad Yunus awarded Nobel Prize as his platform passes $6.8 billion in micro-loans to ultra-poor to start businesses.
Danae Ringelmann, Slava Rubin, and Eric Schell form IndieGoGo, a crowdfunding platform for films and launch at Sundance film festival.
Perry Chen, Yancey Strickler, and Charles Adler start Kickstarter for rewards based crowdfunding of any kind of project.
Paul Spinrad wired magazine ex-editor petitions SEC website to exempt investment offerings where all investors are within 200 miles.
RocketHub crowdfunding platform started by Brian Meece, Jed Cohen, and Vladimir Vukicevic focused on creative projects – later becomes one of three most popular along with Kickstarter and IndieGoGo.
Global crowdfunding reaches $900 million.
US ctizens intendify lobbying of Congress to pass a CrowdFunding bill.
Patrick McHenry (R-NC) authors Crowdfunding Bill in the House of Representatives.
Global cowdfunding passes $1.48 billion.
Kansas first state to make crowdfunding legal, long before the federal law takes effect.
Washington second state to consider its own law.
Congress passes JOBS ACT by an overwhelmng majority and Obama signs it. SEC must write rules by end of year.
SEC Chairperson Mary Shapiro resigns after missing deadline set by Congress to issue rules.
Global cowdfunding passes $2.67 billion, with more than 1 million campaigns.
Forbes article quotes venture capitalist predicting $300 billion will be unleashed by crowdfunding for companies.
Georgia considers and adopts its own crowdfunding provision.
SEC misses second deadline set by Congress to issue rules.
SEC gets new Chairperson Mary Jo White ,who is expected to prioritize issuing rules on crowdfunding.
North Carolina fourth state to introduce a crowdfunding law – Tom Murry State Representative is sponsor.
CrowdFunding World Summit features 46 global leaders and will disseminate best practices to educate entrepreneurs, small business and investors.