R. Shawn McBride has served in a wide variety of complex transactions at three large law firms prior to launching The R. Shawn McBride Law Firm, PLLC. He works with business owners that want to lay the foundation first and get their business going in the right direction or assess where they are and set the stage for a brighter future for their business.

I'm excited to bring R. Shawn McBride on to the show to discuss the benefits of crowdfunding and what the newly introduced crowdfunding-related laws mean to Dallas business owners and investors.

Crowdfunding is experiencing a dramatic change and new laws are being put in place to keep crowdfunding fair, safe, and regulated at the federal level.

Some might think crowdfunding is the be-all and end-all solution to acquiring capital, but as Shawn mentions on the show, crowdfunding might not be the best solution for everyone due to its complexities. Crowdfunding is just not as simple as you might think and we shouldn't look at it as an easy way to stream capital. Instead, crowdfunding is just another tool in the toolbox. So, what does this mean for small Dallas business owners looking to source equity for capital? Tune in to the show to discover more!

 

Show Notes

[2:15] How has crowdfunding changed?

[3:10] Small business owners might believe securities laws do not apply to them when trying to crowdfund or raise money, but that's something they have to be aware of.

[3:45] There are different uses and meanings for the word 'crowdfunding'. Shawn explains a bit more of those key differences.

[4:40] For the first time ever, we have equity crowdfunding at the federal level.

[7:00] The regulations are being put in place to provide a safe outline of how an investor can purchase equity from a small business owner beyond state lines.

[8:50] Want to crowdfund just within the Texas community? You can still do so and the laws for that were put in place a couple of years ago. Nothing has changed on that side.

[9:45] The small investor could have never gotten this kind of deal flow in a traditional investment setting.

[10:50] This opportunity now gives the average Joe the ability to invest in a company that could go public and IPO.

[12:00] With this being said, buyer beware. Investors can still lose money. At the end of the day, you are taking risks.

[12:55] Do the new federal laws protect the equity investor or the company?

[13:15] There are limits to how much money an investor can put into a company.

[14:00] As an investor, you have to know how to do proper due diligence on a small business.

[17:00] People might be surprised there are a fair amount of hurdles, both the small business owner and small investor have to jump over.

[20:40] Crowdfunding does not solve the cost benefit issue. Is it worthwhile to crowdfund your company, especially when you have to hire an additional team to help manage it?

[21:45] Crowdfunding at the federal level might not be as easy-to-use as some people might have thought.

[22:40] If you already have good bookkeeping in the company, then crowdfunding can be a viable way for you to bring in a million dollars.

[23:20] How does Shawn and his law firm help companies lay the correct foundation down?

[28:35] Discover more of what Shawn has to say as he compares the differences between angel investors vs. crowdfund investors.

[29:10] What will venture capitalists do with companies who have raised money through crowdfunding means and are looking for that next financial bump to scale their business even bigger?

[31:25] Obtaining capital through a crowdfunding campaign could create complications for private equity firms.

[32:55] Remember, as an entrepreneur, there are no guarantees and the path hasn't been paved yet. 

[33:25] People need to think of crowdfunding as another tool in the toolbox.

[35:15] People are a little shocked by how much work they will have to do to finalize crowdfunding deals.

[36:45] Do your homework and make sure that crowdfunding is the right option for you before you move forward.

 

Connect with Shawn:

www.mcbrideattorneys.com/

[email protected]

214-418-0258

 

Shawn's Recommended Resources:

SEC: Crowdfunding for Investors

http://www.crowdfunding.com/

 

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