Crowdfunding as a Placemaking and Community Revitalization Tool

Crowdfunding as a Placemaking and Community Revitalization Tool

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.

Michigan Invest Locally Exemption - MILE • 4 th state to have a law/regulation – dozen now have 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

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

Three Part Success • • • Local entrepreneurs Local investors The community

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

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

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

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.

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

Crowdfunding. MI • Online platform – www. crowdfundingmi. com Crowdfunding Partners

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

• 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.

• New program with MEDC and Patronicity for public space crowdfunding

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

• So far 11 projects have been funded totaling $263, 000 in MEDC grant money • 4 projects are currently live • Several slated for spring 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

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

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

Questions Contact Info: Summer Minnick sminnick@mml. org 517 -908 -0301