The National Crowdfunding Association (NLCFA) commits to launching the CAV Campaign: Crowdfunding for American Veterans (CAV). Through CAV, NLFCA will facilitate veterans utilizing investment crowdfunding to finance at least 1,000 start-up or existing veteran-owned businesses per year. The NCLFA feels strongly about the feasibility of the 1,000 number based on the fact that it is estimated that over $6.2 billion will be generated in just donation crowdfunding in 2012, fueling over 600,000 businesses, projects and other endeavors. (http://ipledg.com/blog/?p=166) Once equity crowdfunding begins in 2013, the industry is expecting to see the 2012 numbers quadrupled in the first year.
CAV will change the discussion from one of giving to a veteran by helping him or her find a job, to investing in a veteran, and thus helping him or her create multiple jobs. By creating jobs, veterans improve their community, bring security to their family, and create income for themselves as well as additional business experience and real-world education.
The NLCFA will do this by providing the education, connections, and access to investment crowdfunding for any veteran wishing to start a business. Veterans interested in crowdfunding can sign up the CAV website, and NLCFA will confirm their veteran status with the Veterans Administration. The NLCFA is uniquely qualified to do facilitate crowdfund, as it is the largest, fastest growing (and independent of for-profit motives) crowdfunding association in America. Through its member companies and individuals, along with any partners joining in this commitment, the NLCFA will provide an online toolkit for every veteran wishing to start a business. This toolkit will include personal mentoring from attorneys and CPAs, educational materials about forming a business, including forms and links to other service providers, educational programs about crowdfunding, discounted access to advertising services for publicizing and marketing their crowdfunding offer, and free access to business plan development and provision software that is pre-linked to place the completed plans onto a licensed online portal (at a discounted portal service percentage).
The NLCFA is confident that when given the opportunity to make a small investment in a veteran's business, Americans will respond overwhelmingly. Further, through associations of community banks and other financial institutions, the NLCFA will facilitate the addition of loans and other additional financing for crowdfunding veterans. Further, through the NLCFA and other partners to this commitment, crowdfunded veterans will continue to receive discounted access to business coaches and professionals, giving the crowdfunded veterans significantly improved odds of sustained long term success for their crowdfunded businesses.
CAV Phase One will commence on 7/4/2012 and conclude on 12/31/2012. Phase one will consist of consolidating the partners' services, strategic planning, gathering needed operational financing, developing marketing and educational materials, and developing and launching the cloud-based site for the CAV Campaign, and field testing the software with the participating crowdfund portals.
CAV Phase two will commence on the latter of 1/1/2013 or the first date when investment crowdfunding commences as per the SEC's final regulations being promulgated and conclude on 12/31/2013. Phase Two will consist of educating veterans and launching them into and through the CAV system; mentoring their business plans, financial modeling and document and other media preparations; placing their investment crowdfunding offering out for financing on crowdfund portals; monitoring the transfer of funds to the crowdfunded veteran; and aiding the crowdfunded veteran to put the invested money to the use as promised in the prepared crowdfunding offering documents.
Today it is difficult, if not impossible, to find the necessary capital (through either an investment or loan) to start or expand a small business in America. The combination of the economic downturn and the widening gap between 'Wall Street' and 'Main Street' America has slowed new job creation in America.
Veterans, especially those of Iraq and Afghanistan, have been particularly affected by high unemployment rates, which are hovering around 17 percent or twice the current unemployment rate across civilian America. (http://www.stripes.com/blogs/the-ruptured-duck/the-ruptured-duck-1.16011...)
Approximately 2.4 million non-farm businesses (9 percent of all non-farm businesses in America) are owned by veterans, and 75 percent of those veterans are 55 years old or older. This leaves a sizeable gap of millions of veterans under 55 who are not business owners nor are they experiencing improving employment opportunities.
Through the 2012 JOBS Act, America boldly legalized investment crowdfunding, starting in early 2013. Investment crowdfunding is similar to the popularized donation crowdfunding (such as Kickstarter), but with investment crowdfunding the person transferring their money gets an ownership stake in the business. That ownership stake can be whatever the business owner is willing to offer. It is a clean, direct method whereby anyone can invest in businesses seeking capital through investment crowdfunding online. Never before has it been legal for a small business to open itself up to investors like this. It's the dawn of a new financing method, revolutionizing entrepreneurial endeavors.
While its sees a role for numerous organizations, the NLCFA is most in need of the following:
American veterans associations
Major brand partnerships for organizational financing, media, education, and other communication efforts both to veterans and to the public.
Software (platform and cloud) partners. The NLCFA seeks a very sophisticated and easy to implement cloud-based software solution/system for the CAV Campaign.
Financial and investment organizations to help seed fund CAV Campaign businesses.
Law and CPA organizations to assist in consulting with veterans before, during, and after an investment crowdfunding offering.
NLCFA is open to fully consider offering whatever type of partnership a prospective partner may wish.