Crowdfunding as a Placemaking and Community Revitalization Tool

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Peter Hicks
6 years ago
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1 Crowdfunding as a Placemaking and Community Revitalization Tool

2 What is Crowdfunding? Is the use of small amounts of capital from a large number of individuals to finance a new business venture or project. Types of Crowdfunding Reward/Donation essentially donating money to support a cause. Examples: Kickstarter or Indiegogo Investment Crowdfunding funding a start-up or expansion of a business venture by borrowing from, sharing revenue with, or selling equity to many investors.

3 Michigan Invest Locally Exemption - MILE 4 th state to have a law/regulation dozen now have one on the books Allows businesses to raise capital Up to $1 million without audited financial statements Up to $2 million with audited financial statements Investors Accredited can invest unlimited amount Non-accredited can invest up to $10,000 in any one campaign

4 Why Crowdfunding is Important for Communities Economic and community development Local opportunity to diversify local economies Attract & retain talent Better Communities Better Michigan

6 Three Part Success Local entrepreneurs Local investors The community

7 Local Entrepreneurs Start or grow a businesses Massive gap in the market to access capital Build customer base

8 Tecumseh Brewing Co. Experienced microbrewery production and management team Located in the heart of downtown Tecumseh Building already owned; established following of local supporters First to be fully funded under MILE law

10 Local Investors Opportunity to invest in what they know best Bring more than funding Customers Promoters Advocates Local $$ stays local

11 Main Street Community Partnership 22 Adrian residents invested in building on Main Street 7,400 sq. ft. of mixed-use space Provided stable landlord to a long-term expanding first floor retailer.

12 The Community Strengthens existing/new relationships Diversifies local economy Enhances the emotional connection to a community Fills vacant buildings and empty lots

13 CrowdfundingMI Online platform Crowdfunding Partners

14 National expert in business crowdfunding Fundamental focus on local businesses, local investors, and local community partners. Locally-focused marketplace o CrowdfundingMI.com

15 National expert in real estate crowdfunding. Fundrise gives citizens the power to invest directly in local real estate. Citizens can build places through public ownership.

16 New program with MEDC and Patronicity for public space crowdfunding

17 Public Spaces Community Places Just kicked off July 2014 Matching grant for public space improvements Dollar for dollar match up to $100,000 Community/Organization must crowdfund for public project through Patronicity If they meet the target, they get the matching grant from MEDC Projects must be ready to execute upon being awarded the grant and must be in a community with a traditional downtown

20 So far 22 projects have been funded totaling $546,850 in MEDC grant money 10 projects are currently live (~$573,000) Several slated for summer kick-off 100% success rate (so far)!!! Turn around for approval is within days (some have been hours) Application guidelines can be found on patronicity.com and crowdfundingmi.com Application is actually filled out online

21 Next steps Educate local entrepreneurs and investors Support complementary law: Local Stock Exchanges Highlight and share success stories Continue to promote Public Spaces Community Places program

22 CROWDFUNDINGMI Send Michigan is pro-business message to entrepreneurs Game-changing chance to further propel and enhance our economy Michigan has the opportunity to serve as a magnet for the creative, talented class

24 Questions Contact Info: Summer Minnick

Public Spaces Community Places

Public Spaces Community Places Sarah Rainero Michigan Economic Development Corporation September 2015 Traditional Economic Development Org -Jobs, Investment Community Development -Create PLACE and jobs