SMART CITIES / FUNDING MODELS
Karl Dakin
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
FUNDING FORTUNES
"A well-grounded financial forecast is the secret ingredient in every smart investment."
A financial forecast is needed to price an investment. Without a financial forecast, the investor is left to guess the outcome of the business and their share of any profits. Nearly all investors will refuse to invest in this effort, expecting the enterprise to do so. The lack of a financial forecast weighs badly on the viewpoint of the investor candidate on the leadership of the enterprise’s capability and credibility.
?QUICK CALENDAR
?NEXT TUESDAY, March 4, Successful Funding show, Closing the Gap with Investors - 8 am Mountain Time, 10 am Eastern https://www.dhirubhai.net/events/successfulfunding-fillingthegap7300295275070271488/theater/
?NEXT FRIDAY, March 7, NC3’s 2025 National Conference: Changing the Paradigm: Mobilizing Community Investment Funds, East Lansing, Michigan – 8 am to 4:30 pm Eastern Time.
April 2 thru April 23 - Investor ID Webinar - 8 am to 9 am Mountain Time, 10 am to 11 am Eastern Time -Targeting High Probability Investor Candidates: Finding Your Funding Soulmate – 1st in Four-Part, One Hour, Weekly Series starts on - https://dakincapital.com/event-6036637
?FUNDING POINT – SMART CITIES / FUNDING MODELS
To fund a smart city, I offer the Diversified Community Investment Fund (DCIF) model advanced by the National Coalition of Community Capital for consideration.
This model has been developed to enable economically distressed/underserved communities to raise funding for community revitalization. It may be viewed like any other fund, where money is pooled for investment into multiple projects or businesses.
Most people are familiar with a private equity fund in which wealthy people invest their money under the management of a professional team. That model will also work for a smart city, but the cap on the number of investors forces a structure that allows only large-dollar investments into the fund.
In contrast, a DCIF is designed to utilize the JOBS Act Regulation CF investment crowdfunding to enable every adult to invest. This difference allows every resident or citizen (as defined) to invest in the smart city and become a stockholder.
The private equity fund and a DCIF are designed to avoid categorization as an entity regulated by the Company Investment Act. This status requires extensive review, approval, and monitoring by the SEC and FINRA, dramatically increasing operating costs.
A fund is not an abstract concept. When funding is fully deployed, it is a bundle of investments. Within the DCIF model, 60% of the funds must be in real estate or other assets that hold value. This allows for the remainder to be invested in businesses.
?I propose designing, developing, and operating a smart city as a sustainable business. A smart city may operate like a municipal government and potentially substitute for such a government, or it may be ‘bolted on’ to the municipal government like a large business or Planned Unit Development (PUD) that contracts for municipal and utility services.
?As a fund, the smart city can raise money from investors. Investment may be made in a single entity, or the smart city may carve out different businesses to provide services to its residents and visitors. Investors may invest in all or some of these ventures. To avoid common issues of the haves and the have-nots, as well as the disenfranchisement of the poor, a smart city may mandate a level of ownership as a condition of residency.
?As a business, it may have different classes of ownership based on dollar amount, time of investment, or other categories that may reflect the extent of a resident’s involvement as a citizen and/or contributions to the community.
?As a fund, the design should identify and recognize the different capabilities of the smart city’s residents to invest with cash or services. It should design multiple investment structures that match these capabilities. It should avoid attempts to simplify the investment model by only appealing to large funding sources.?
?RESOURCES ON SMART CITIES / FUNDING
Technical articles on revenue sharing from Google Scholar include:
??Books available on Amazon:
ASK CAP
CAP is my AI avatar produced by Knowledge Avatars and trained by me on topics of funding and entrepreneurship. CAP is available on the Dakin Capital website where you may ask questions about funding without charge.
I asked CAP:
How would a community investment fund serve to fund a smart city?
?CAP responded:
A community investment fund could serve to fund a smart city by pooling resources from local residents, businesses, and other stakeholders.
?This collective capital can be used to finance infrastructure projects, technology systems, and services that improve urban living, such as smart grids, public transportation, and energy-efficient buildings.
?By allowing the community to invest directly, it fosters local engagement, ensures investments align with community needs, and provides residents with a potential return on investment, further encouraging economic growth and development within the smart city.
SUCCESSFUL FUNDING SHOW
TOMORROW, Tuesday, February 25, on my Successful Funding show, I will present my insights on investors: their capabilities, preferences, and motivations. 8 am Mountain Time, 10 am Eastern
?You may view the show live or listen to a recording afterward at this link:
TUESDAY, I hosted my Successful Funding show, where the topic was funding Smart Cities. Dr. Tom Frey, the futurist, will be my guest. We will discuss several ways in which a city of the future may differ from today and how the concept of a Smart City as a sustainable business enterprise answering to its residents as stockholders could reduce bureaucracy.
You may view the recording of the show at:
EDUCATION PROGRAM
Targeting High Probability Investor Candidates: Finding Your Funding Soulmate
The webinar of this education program will be presented three more times this year:
·?????? April 2, 9, 16, 23
·?????? July 2, 9, 16, 23
·?????? Oct 1, 8, 15, 22
The education program includes:
· Artificial Intelligence Avatar - Attendees will have one year of online access to a custom AI avatar on the topic of identifying investor candidates.
· Book - Attendees will receive a digital copy of a book on matching their businesses and funding needs with investor candidates who need the businesses to succeed to attain their own goals.
· Workshop - A half-day webinar will be presented on Zoom on Thursday, January 16, 2025, from 11 am to 1 pm Eastern Time, 9 am to 1 pm Mountain Time by Karl Dakin.
· Consult -? Each attendee will receive one-half hour of consultation with Karl Dakin on their funding challenges.
Discover how to secure funding more effectively and efficiently. By targeting the right investor candidates, you can tailor your entire campaign, from offer to closing, to match these candidates - achieving greater success in less time and with reduced costs.
This avtor is designed for entrepreneurs, small business owners, community leaders, charities, service providers, and economic developers responsible for raising funding.
Readers of this Instant Funding newsletter qualify for the discounted price of $400 (marked down from $500). Go to Register. Select the Funding Fans ticket and use the discount code FundingFan2025.
GOT 15 MINUTES AND A QUESTION ON FUNDING - GIVE ME A CALL
I recognize that many readers of this Instant Funding newsletter have questions about funding that are not answered by the newsletter. I am available for a 15-minute phone/video call about your funding questions. This is to let you know there is no charge for this call. Just contact me to schedule a time at [email protected].
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Karl Dakin, the Capital Coach
Dakin Capital LLC
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Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
2 天前What funding models would work best for smart cities?