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					          Eric Corl:
         Fundraising



           June 20, 2012

         Speaker:
         Eric Corl
    Eric Corl, Fundable




ERIC CORL VIRTUAL SPEAKER SERIES
CONTENTS


        PROFILE                INTRODUCTION & SPEAKER PROFILE         3


         TOPIC 1                GETTING STARTED AND GOING BIG         6


         TOPIC 2                        GROWING BEYOND BIG            9


         TOPIC 3               CROWDFUNDING AND THE JOBS ACT          11

         TOPIC 4
                                        TIPS FROM AN EXPERT           16




© 2012 Extreme Entrepreneurship Education, LLC All Rights Reserved.




                     ERIC CORL VIRTUAL SPEAKER SERIES
INTRODUCTION
The Virtual Speaker Series provides interactive, low-cost, live, virtual, entrepreneurship
broadcasts featuring the country’s top young entrepreneurs. Hosts can choose from one or both
of the following tracks: Succeeding as an Entrepreneur and Creating Your Own Job. For more
information, please visit us at www.virtualspeakerseries.org.


WHY BRING THE SERIES

     10 virtual presentations for the price of one in-person keynote
     Bring the country’s top young entrepreneurs into your classroom no matter where you
      are. Your participants are guaranteed to relate to the presenters
     Provide repeated, in-depth exposure on a number of topics so participants can fully
      understand and feel confident starting a business



PROFILE

Featured Speaker:




                                      Eric Corl


                    ERIC CORL VIRTUAL SPEAKER SERIES
Background

Eric Corl has spent his entire career helping entrepreneurs launch their ideas.

In 2004, at the age of 19, he was one of the co-founders of the Go BIG Network, the world's largest
fundraising platform for startups, which grew to over 330,000 small businesses and millions of dollars in
funded ideas.

Three years later in 2007, Eric launched IdeaBuyer.com, the first Online Marketplace for Intellectual
Property to allow for the licensing and sale of patents. IdeaBuyer.com has since listed over 10,000
patents and has attracted an all-star list of buyers including Johnson and Johnson, HP, 3M, and GE.

In 2010 Eric then became a partner at Virtucon Ventures, an incubator for early stage Internet companies.
There, he co-founded Fundable.com, a crowdfunding platform for startup companies where he is
currently the President.




                       ERIC CORL VIRTUAL SPEAKER SERIES
TOPIC #1 – GETTING STARTED AND GOING BIG
The Go Big Network
The Go Big Network is the largest funding platform online for accredited angel investors and
entrepreneurs.


How it works:
            Connects entrepreneurs looking to raise funds with accredited angel investors
            It was the first funding platform to launch online in 2004
            Had to walk through with the SEC to develop a process and make sure it was in line with
                 all of the SEC’s rules. At the time, there were no statutes for online solicitation to
                 accredited investors
            The investors create a funding request on the site and then after approval those funding
                 requests are made available to accredited investors to review


The Investors:
            All investment decisions come down to industry, location and funding amount
            An accredited investor is a former entrepreneur or executive that was successful and is
                 now looking to invest in companies in the industry they made their living in
            Accredited investors need to have income over $200,000 per year or a net worth of a
                 million dollars or more
            Grabbing an investor’s attention comes back to the traditional elevator pitch, being able
                 to be brief and being able to give a short synopsis of what your business does




Finding their Niche:
            Go Big Network is able to stand out from the competition by being open to a wider range
                 of industries
            Go Big Network is not only more diverse in terms of the industry backgrounds of the
                 entrepreneurs, but also the investors, funding amounts and different types of deals that
                 they are open to
            The biggest niche on Go Big Network is manufacturing




                        ERIC CORL VIRTUAL SPEAKER SERIES
Quotable Quotes from Topic #1: Getting Started and Going Big

“[Go Big Network] is more of a connection agent and there are reasons for that. We used to track it more
in depth, but there are actually SEC restrictions in terms of how involved we could be to make sure we
were not recommending certain deals and facilitating too much of that online.” – Eric Corl


“I think that new products are certainly a big majority of the businesses that are getting started, but it is so
diverse in terms of what actually comes to [Go Big Network].” – Eric Corl


“You have people with new products that are looking to get off the ground and they you have people who
are looking to grow and expand their businesses and raise money around that.” – Eric Corl


“Really, what angel investors want to see, they want to see a company that has traction and they want it
to be explained to them very briefly.” – Eric Corl


“Angel Investors want to see that you are solving a big problem to that is really number one, so you want
to talk about the “TAN.” What is the Total Addressable Market?” – Eric Corl


“People want to be involved with things that have demand and traction.” – Eric Corl


“A lot of times angel investors can get involved and it is very rewarding to them because they can help
move the meter a lot of times with connections they have in the industry and their capital.” – Eric Corl


“Most angel investors are either growing or just sustaining a successful business that they have
launched.” – Eric Corl




                         ERIC CORL VIRTUAL SPEAKER SERIES
TOPIC #2: GROWING BEYOND BIG
SOLVING THE PROBLEMS TO ENABLE ENTREPRENEURS
Eric knows from experience that entrepreneurship is all about solving a problem. In all of his ventures,
Eric noticed something lacking in the field so he ventured to find success and pioneer innovative
solutions.


Lunching IdeaBuyer.com to Solve a Problem:
     The purpose of Idea Buyer was to connect corporations with intellectual property that they would
        not have otherwise come across
     Eric launched Idea Buyer in 2007 because he saw a big problem in that less than 5% of
        intellectual property was ever commercialized
     There is a big disconnect between people who create intellectual property and people that could
        bring it to market


Finding Success:
     By Eric’s standards, Idea Buyer has done very well with a 5 person team that continues to
        operate and grow it
     Eric has done a lot of building and creating systems so that Idea Buyer could achieve more with a
        virtual team and by outsourcing certain services to patent attorneys and other agencies that can
        help inventors get results
     Idea Buyer has listed over 10,000 patents, had about 70 licensing agreements and they’ve had
        an all-star list of buyers and licensees ranging from HP to 3M to Johnson & Johnson
     Idea Buyer has raised over $2 million for different inventions at smaller levels and generated
        about $10 million in purchase orders for people with new products
     The Idea Buyer market place itself is listed in over one billion dollars in intellectual property and
        resulted in thousands of intellectual property sales and licensing agreements


Moving on to Fundable:
     Eric wanted to launch Fundable because it solves a lot of the problems he ran into with Idea
        Buyer on the creation side
     Fundable has a goal of giving people a way to raise capital while in the idea stage




                        ERIC CORL VIRTUAL SPEAKER SERIES
Quotable Quotes from Topic #2: Growing Beyond Big

“Idea Byer has been very successful in terms of helping commercialize more intellectual property. That
was the whole goal of launching the site.” – Eric Corl


“When you can publically show demand, you can raise capital. That no longer becomes a big obstacle
because when you can show thousands of people want something, the risk for the investor goes down
dramatically.” – Eric Corl


“When you try to do too many things under one roof, it becomes confusing from a brand perspective and
from an internal goal perspective.” – Eric Corl


“It was a conscience one to be able to focus on the future for Fundable and take myself out of day-to-day
operations on Idea Buyer.” – Eric Corl


“When you get into the business side and when you start to prepare for the equity side of public equity
investments and start thinking about what that will look like, it is always a learning experience and we will
test our hypothesis and think about how it works and adjust accordingly.” – Eric Corl


“[Fundable] is simply for businesses, simple start-ups and that is different than what is out there now. We
are focused on building our platform around the new legislation and the laws that have been changed
with the Jobs Act.” – Eric Corl


“Having investors, growing a business and communicating with those investors long term is much
different than someone getting a copy of your CD or poetry book.” – Eric Corl


“[Raising idea stage capital] is so enabling and empowering to entrepreneurs. It will generate millions of
new businesses and how people raise a tremendous amount of money, you really reduce the friction of
launching a business and growing it because you can pretty quickly demonstrate demand and traction for
an idea.” – Eric Corl




                        ERIC CORL VIRTUAL SPEAKER SERIES
TOPIC #3: CROWDFUNDING AND THE JOBS ACT
WHAT THE FUTRURE HOLD FOR ENTREPRENEURS
Eric speaks on how current legislation is the “biggest thing to happen to entrepreneurship and small
business in the last 100 years.” With the passing of the JOBS Act and important mandates to come, he
describes how these movements will “fundamentally shift our economy in a positive way and it will spur a
ton of innovation.”


July 4, 2012:
     On July 4, 2012 the SEC will modify section 506D of the Jobs Act, which is a regulation around
        public solicitation
     Currently, entrepreneurs cannot publically solicit investment.         They must go though a very
        complicated process and must only use very credited investors
     This mandate will allow entrepreneurs to advertise that they are raising capital
     They will still only be able to raise capital from accredited investors, but it is a huge opportunity
        because most people do not know accredited investors


Who is Crowdfunding for?
     Eric and his team believe that idea stage capital is the sweet spot for crowdfunding
     There are also established businesses that would benefit greatly from raising capital from
        customers
     It is a fantastic thing for both entrepreneurs and investors and it will open up trillions of dollars of
        investment capital for new companies and new startups


Crowdfunding Investors:
     There is a deadline on January 1 of 2013 to propose a mandate which will allow the public to
        invest in startups
     An important point about crowdfunding is the key to finding the balance of how much say the
        crowdfunding investor will get in how the business is run
     Feedback though polls and surveys would be a way for entrepreneurs to use the investor input as
        an asset opposed to it being a liability
     There will be a lot of regulations around how entrepreneurs have to communicate with their
        investors




                        ERIC CORL VIRTUAL SPEAKER SERIES
Quotable Quotes from Topic #3: Crowdfunding and the Jobs Act
“If you can as a platform make general legal disclaimers, contracts and term sheets all standard, you can
really reduce the friction and reduce legal costs because you can create a standard process for how
companies can raise money.” – Eric Corl


“There will be a much more public discussions about high profile companies that are raising money. I’m
sure there will be a lot of excitement around the first companies to move forward and take advantage of
this legislation.” – Eric Corl


“I could see even July 4 to be able to announce that you are raising money and I imagine a whole new
conversation that did not exist in a public sphere will happen. I can even imagine from a media
perspective, you will be able to look and see who is raising funds and how much.” – Michael Simmons


“The public will be able to invest in companies they are choosing as opposed to being restricted to public
companies.” – Eric Corl


“I think that [not being able to limit investors] would be detrimental if you could not. Simply because if your
issue stock shares to the public and you find out your competitor was buying a bulk of that, you don’t want
that as an entrepreneur so you should have the right to prohibit that from happening.” – Eric Corl


“The investor to entrepreneur relationship is going to be a tricky one. You have a lot of people who could
have difficult personalities and $250 could be all the money in the world to them and it could cause issues
for certain entrepreneurs.” – Eric Corl


“You can’t have a thousand people who have put $50 in you company all having a say in terms of how
your business is run.” – Eric Corl


“For entrepreneurs, the ease of getting out the door, generating traction and raising money has never
been this easy and the legislation passing is going to enable millions of companies to get started.” – Eric
Corl




                         ERIC CORL VIRTUAL SPEAKER SERIES
TOPIC #4: TIPS FROM AN EXPERT
HOW ONE TOOL CAN MAKE ALL THE DIFFERENCE
The tools that an entrepreneur uses “can really save a huge amount of time and money.” Eric shares
some awesome tools and hot tips for succeeding in your venture to seek capital.


Preparation is key:
     Eric points out that a mistake many capital seekers make is to assume that just because an idea
        is posted on a platform site, the rest will take care of itself
     A platform on a website such as Fundable requires as much for the collateral as it does for
        marketing the project itself
     When investing in a startup, it is important to have faith that the venture is not a scam. Fundable
        runs its startups though a series of tests to see whether or not their use of processes is actually
        reasonable


Top Tools:
     Vworker.com
         Eric used this tool early on when launching a business and while he does not use it any
             more, it is a valuable asset which allows you to hire people for short-term work
         There are a lot of skilled laborers you can find via this site who are looking for side projects
         It gives you a cheap way to get great results and the workers benefit as will because they can
             utilize their extra time to make more money


     Boomerang by Google
         Boomerang is a fantastic tool if you are a Gmail user - you can schedule your emails to be
             sent out at a later time and date
         It is great if you are preparing for the next day so you can schedule some emails to go out,
             wish people a happy birthday or schedule follow up emails
         Eric uses this tool on a weekly basis and his teams at Go Big Network and Idea Buyer also
             use it


     WePay
         They are trying to disrupt what PayPal has done and what they are doing in the online
             payment market
         WePay is trying to create a new more user-friendly payment system - it is easy to implement
             and the team is easy to work with




                        ERIC CORL VIRTUAL SPEAKER SERIES
Quotable Quotes from Topic #4: Tips from an Expert
“I personally have to say that you have really changed my perspective in this conversation. I did not see
how crowd funding was relevant to me, but I can very much see raising money from our customers. We
are thinking about it at a very small level but I can see making it more compelling because the customers
are just so much more bought in.” – Michael Simmons


“For entrepreneurs, the ease of getting out the door, generating traction and raising money has never
been this easy and the legislation passing is going to enable millions of companies to get started.” – Eric
Corl


“What is nice about Boomerang is we use it with our team on the Idea Buyer side and you can actually
have it remind you, just send a reminder to the top of your inbox if someone does not respond to your
email. So you can keep it right at the top of your inbox.” – Eric Corl


“Vworker is a great tool as an entrepreneur because it gives you a cheap way to get great results and the
workers benefit as will because they can utilize their extra time to make more money.” – Eric Corl


“Fundable does some general things to weed out things that are not realistic and we think might take
advantage of investors or people that are backing projects.” – Eric Corl


“I would say that not preparing enough for the marketing side of it would be one of the biggest mistakes
that entrepreneurs are currently making with the rewards side.” – Eric Corl


“People often times think that a platform is a pot of gold. That if they just put their idea up there that
everything will come to them and they will automatically get funded. That is not the case.” – Eric Corl




© 2012 Extreme Entrepreneurship Education, LLC All Rights Reserved.




                        ERIC CORL VIRTUAL SPEAKER SERIES

				
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