FUNDING POTENTIAL – PART 2
Karl Dakin
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
QUICK CALENDAR
In addition to this Instant Funding newsletter, I host the Successful Funding show, appear as a guest on various podcasts and television shows, speak at different events, and present my educational programs. I've included here a quick listing of upcoming opportunities to share information, learn, or meet in person or via videoconferencing.
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Founded in Foco – Funding Potential - this Friday, March 8, 11 am MST, Fort Collins
Successful Funding – Donor Advised Funds – Tuesday, March 12, 8 am MDT – LinkedIn Live
Successful Funding – Financial Record Preparations – Tuesday, March 19, 8 am MDT – LinkedIn Live
Successful Funding – Reg CF Crowdfunding – Thursday, March 21, 8 am MDT – LinkedIn Live
Successful Funding – Business Acquisitions – Tuesday, April 2, MDT – LinkedIn Live
SuperCrowd 2024 – Impact Crowdfunding – Wednesday/Thursday – April 17/18 - Online
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FUNDING POTENTIAL – PART 2
?So many times, when developing a capital strategy, there is a barrier in every direction, and options still need to be available. The potential to raise funding has been reduced to zero. More often, anyone seeking to raise funding starts with limited knowledge that may present only one or possibly two options. Without a 360-degree awareness of all funding options, the hunt for money may appear to be over before it has begun.
?There are three primary types of funding:
1.???? Charitable contribution
2.???? Rewards transaction
3.???? Investment
?These types of funding are not mutually exclusive. It may be possible to raise capital by combining one or more types or stepping through stages from one type to another.
?Charitable Contribution
A charitable contribution is a donation. A source of capital transfers an item of value (money, real property, stocks, bonds, crypto, or any other asset of value) to a person, charity, community project, or other entity. The transfer occurs without expectation of receiving anything in return except possibly a warm spot in their heart.
?A small business seeking funding can team up with a charity.
?The charity may obtain a donation and then:
·?????? invest the money in the small business as a Program Related Investment (PRI),
·?????? engage the small business as a contractor to perform work with the donation passed through as a fee
?A small business may arrange for a donation to be made to a donor-advised fund (DAF), where it may be invested in the small business. [See my Successful Funding show on Tuesday, March 12, at 8 a.m., where Wayne McDaniel is my guest.]
?Rewards Transaction
?When money is raised through a rewards campaign, the capital source transfers money to someone in exchange for a product or service. A rewards transaction sells a product or service in its most basic form, stripped of labels.
?A rewards transaction may be completed with topspin, where the transaction price is above the list price because it is coupled with something of non-monetary value, treated as a bonus to help the source of the product or service, or as a form of impact gift.
?A rewards transaction may be completed as a discount where the price is below the list price to initiate a customer relationship, introduce a new product or service, or gain brand awareness.
?Rewards transactions have been around for a long time, with many forms and names. Every transaction has the potential to generate revenue through profits or surplus.
?A small business may engage in rewards transactions as a singular activity or combine rewards transactions with investments. I commonly design investment crowdfunding campaigns where current and future sales occur in combination with the transfer of ownership rights. [See the series on Crowdfunding in this Instant Funding newsletter].
?Investments
?When money is raised through investment, the source of capital transfers money to someone in exchange for an opportunity to increase value beyond the original investment.
?The investment may take the form of security, where money is placed under the management of someone else who uses it to increase value. An example would be ownership in a small business.
?The investment may take the form of purchasing something that generates revenue from its operation. An example would be participation in revenue from a rental property.
?The investment may take the form of purchasing something that appreciates in value over time. Examples might be gold, art, or collector’s items.
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?There is a common risk that the investment will not increase in value. In fact, it may experience a reduction in value, losing all value.
?Other Funding
?Many other actions may be viewed as funding, and they may fall within one of the three types described above or represent their own class. With all the options on the table, a fund seeker may find something or a combination that works.
?From the perspective of the fund seeker, funding requires a source, a reason that motivates the source to provide the funding, and a series of actions that result in the transfer.
?Many questions remain. Several will be addressed in the following editions of this Instant Funding newsletter.
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FOUNDED IN FOCO (FORT COLLINS STARTUP WEEK)
Tomorrow, Friday, March 8, I will present a workshop on What is Your Funding Potential? on from 11:00 am to 12:30 pm in Fort Collins, Colorado, at the Founded in FOCO event.
?The five-day event offers 100+ sessions with 100+ local experts to help you?spark innovative ideas,?learn from peers, and?build relationships.
?SUCCESSFUL FUNDING
?Chris Miller was my guest Tuesday on the seventh Successful Funding show. Chris is Chairperson of the Board of the National Center for Community Capital (NC3). NC3 is advocating for the establishment of Diversified Community Investment Funds – locally owned and operated funds to address the capital needs of a community, including its small businesses and community projects. Many communities are looking to add local funding to their toolbox for housing, preserving existing businesses and supporting new businesses and those other projects that never seem to get to the top of anyone’s list.
Next week, on Tuesday, March 12, my guest will be Wayne McDaniel with the SaT Catalyst Fund which is a donor advised funding making investments in impact businesses. Donor advised funds represent a source of funding that matches individuals benefiting charities with their donations while obtaining tax deductions with the needs of businesses for investment.
You may register to attend this free Event on LinkedIn at:
?You may view all of the Successful Funding shows in my Posts on my LinkedIn profile at: https://www.dhirubhai.net/in/karldakin/
?The Successful Funding show on my LinkedIn profile will repeat weekly at 8 am MST on Tuesdays. You may register to attend by going on LinkedIn, searching for Events, clicking on the Events button, searching for Successful Funding, and then clicking on the Attend button. You should receive an email with a link to save to your calendar. You can also click on the Share button and obtain the URL link to the show to put it in your calendar.
? DON COHEN
?I was a guest on Don Cohen’s show yesterday where we will discussed Successful Capital Funding. ?The conversation centered on investments made from high quality relationships that are mutually beneficial to the seeker of funding and the investor.
You can view a recording of the show at:
?SUPERCROWD 2024
?I will co-host and present at SuperCrowd 2024 , "The Impact Crowdfunding Event of the Year,” held online on April 17th and 18th.
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Karl Dakin, the Capital Coach
Dakin Capital LLC
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I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
8 个月What are your funding options?