- Peer-to-Peer Business Lending
- Reward-based Crowdfunding
- Donation-based Crowdfunding
- Pre-sale Crowdfunding
- Equity-based Crowdfunding
- Debt-based Securities
- Real Estate Securities
Until the SEC rules regarding Title III of the JOBS act are finalized, securities-based offers will be limited to states that have intra-state crowdfunding laws, which currently allow for the sale of securities exclusively within their state.
The C3Funding program described below is not just a website, platform or portal. It is a complete package of services needed for each geographic community to establish its own program.
C3Funding sites offer alternative financing only to persons and entities within a specific geographical area such as a city or county or other defined and limited population area where site operators can generally know and/or easily legitimize the people wanting to raise funds on their site. Such areas are geographically limited as much as possible to provide occasional forums where investors / contributors can meet in person with the people and organizations that are seeking to raise funds within their community. The rollout of any site will include a defined and exclusive area for posted offers that will be reviewed and approved by Crowdfunding Services LLC.
Community sites will be published under the domain c3funding.com (i.e. portal.c3funding.com/(community name)).
Also, an optional front-end website can also be published under the c3funding.com domain (i.e. c3funding.com/(community name)).
All payment processing will be done under the payment.c3funding.com sub-domain to enhance payment security.
Identity and access control services are provided via accounts.c3financing.com.
Service & Fee Structure
There are minimal fees an issuer will incur when placing an offer on a C3Funding site. These fees include:
- Application fee: $50 - $250 depending on the type of offer
- A Percentage of Funds Raised: 3 – 7%
- Any Financial Fees: Credit card fees, ACH transfer fees, etc.
The C3Funding employees and site operators shall not offer any investment advice and no commissions will be paid by C3Funding or its affiliates for the sale of securities included on the site. Community site operators may provide supplemental local services at the approval of Crowdfunding Services to assist issuers and investors with their crowdfunding endeavors. Such local services might include licensed securities brokers, investment and legal advisers, advertising consultants, etc.
With the goal of promoting the community centricity of our C3Funding platform, Crowdfunding Services offers opportunities for community leaders and/or entities to own 75% interest in their local site as a quasi “franchise” owner. These quasi franchises will be setup as a local for-profit LLC (or L3C where available). Site franchise investors will be expected to meet certain requirements and will be vetted by Crowdfunding Services before any agreements are finalized. The established value of a site will vary depending partly on the size and economic conditions of a site’s community. Site ownership requires a 50% down payment of the purchased shares’ value with the balance to be paid through the profits distributed to each respective owner through the LLC/L3C.
Crowdfunding Services will form the local company and provide for the following resources and services:
- All software and hardware required for the C3Funding site
- Third-party services required by each site
- An initial local marketing program
- Marketing tips and resources to assist with the success of a community crowdfunding site
- Regular updates on crowdfunding laws
With regards to sites sold as quasi franchises, Crowdfunding Services will retain a 25% interest in the entity. In addition, each quasi franchise will have recurring expenses, including “franchise” fees, software/hardware usage fees, marketing and operations expenses, etc. Investment dividends will be distributed to site owner(s) at the end of each year after all expenses have been paid. Each “franchised” site is required to follow the guidelines and structure of the overall C3Funding platform.
The success of a community centric crowdfunding site will depend greatly on the number of people and organizations in the area who are made aware of the investor, issuer and community benefits of the site for alternative financing. In addition, the successful implementation and operation of a community centric crowdfunding site will depend on the input and direction of local leaders, because each community is different and may be responsive to different programs and approaches.
As the C3Funding platform grows, Crowdfunding Services commits to its continued efforts to strengthen the economic growth and development of communities by making alternative funding investments readily accessible to individuals who are looking to invest back into their community.
In conclusion, please remember that C3Funding (the Community Centric Crowdfunding program described herein) is not just a website, platform or portal; it is a complete package of services needed to successfully implement a community crowdfunding initiative. It is to be a collaboration, cooperation and partnership between Crowdfunding Services and those community leaders setting up the program for their community. Crowdfunding Services will facilitate and support networking with the greater C3Funding community, so we can all benefit from developing “best practices” in the operation of our own local community centric crowdfunding programs.
We invite your interest and investment in this financially and socially disruptive change in the way we do business.