By Katie Soo (www.ownyourhollywood.com)

Los Angeles, CA -- (ReleaseWire) -- 04/03/2012 -- Congress just passed the JOBS Act and I can almost hear all the start ups and entrepreneurs in the world cheer in unisons. For those of you who are now just beginning to follow the trend of crowdfunding, read on. It's a social media trend you're going to want to know about as it continues to pick up steam in the social sphere.

We've seen the success of crowdfunding formulas like Kickstarter and Kiva, and they've demonstrated that a group of strangers all believing in the same idea can come together on a social media platform and fund a project knowing that they'll get absolutely no return.

What if we changed that?

What if I told you your donation can now be turned into an investment and can swap out for some real cash in return for putting money in the pot?

Now that I've got you listening, let's dissect how this affects the social model in simple terms.

Past:

- Find project you like
- Donate money to project
- Dependent on tier of investment, get a non $ reward in return

Now:

- Find a project you like
- Invest the dollar amount you were going to donate
- Get a piece of the profit – actual $

I don't know about you, but I'm definitely more interested in the latter. Though it's tempting to throw my hard earned money to an entrepreneur in exchange for a DVD or extreme gratitude from a guy I don't know, it's much more rewarding as a consumer to have true ownership of a project. And heck – if I'm paying for it, why shouldn't I share in the profits?

Most of us who aren't familiar with investment models or are an accredited investor can now take advantage of a new shift coming quickly through social media. This means for the first time in investment history, what you say as the consumer actually matters.

Let's take Hollywood for example, indie films took on a life of its own with sites like Kickstarter and Slated. In the past, if you wanted to shoot a sci-fi film, you'd have to do one of the following: get into debt, use your student loan, borrow, or call in for some major favors. Now, artists can post up their projects with script, attached talent, full budget, and how much they'll need. If the community likes what they see, they'll donate to the cause and the project will hit their target budget in no time. Essentially, it's another avenue for free money from people who want to support your work, but gain nothing in return. However, crowdsourcing is shifting that donation opportunity into a true investment.

Many are calling crowdfund investing the path to economic recovery. The way I see it? It's a social shift in the way we perceive participation in companies and investments. Brands can no longer buy their audiences with traditional advertising – if you want the consumer to like your brand, you're going to have to join the conversation. By doing so, you're tapping into a database of 100s of millions of people around the world wired into a program focused on sharing. If Susie from Brazil saw a project and wanted to invest in through crowdsourcing, she opts in and a ping is sent out to all her followers on Susie's social sites. Those who share her interest will join in the movement, and eventually, if it trickles far enough – it'll create momentum using the trusted source of WOM marketing.

Now, like all investments in life, nothing is guaranteed. There isn't a sure win with crowdsourcing, but the notion itself is new and has great potential to change the way entrepreneurs go about finding their first round of capital.

It's a great way to leverage social connections to feed into projects that pique your interest and in the past, you wouldn't be able to invest in. Now, with the new JOBS Act, that channel to accessing capital is starting to open for a lot of startups.

Do you have a company, idea, or product you've been sitting on for years but couldn't seem to find a way to fund it? This is your chance. Stay ahead of the curve and find a way to gain market traction right now before the large social companies take over. You have a shot at making your dreams a reality, but this time – not through donations, hoping someone will have extra cash on the side for you – but rather as an official startup that can participate in a profit sharing model for all those who believe in your concepts. (http://www.ownyourhollywood.com)

To learn more about Own Your Hollywood please follow us on Twitter @OwnUrHollywood.

To learn more about the author please follow her on Twitter @katiekat.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

By Imran Mukati (www.ownyourhollywood.com)

Los Angeles, CA -- (ReleaseWire) -- 03/29/2012 -- (**UPDATE** SENATE AND HOUSE HAVE PASSED THE BILL!!)

In the past decade the Internet in general, and more specifically social media, has served to shrink the world. Geographical, language and cultural barriers that once seemed impassable are now conquered with the tap of a button on a keyboard, as global classrooms put Portuguese and Japanese students in the same virtual room and an African warlord's crimes become an international scandal overnight.

The same trend, then, should come to bear in the newest and most dynamic application of social media -- crowdfunding. As new crowdfunding sites pop up and businesses and creative projects become reality because of contributions from a global marketplace, the collaboration of investors from every corner of the world has never been more expedient. In Cape Town, South Africa, an award has been established for the development of crowdfunding technology that can help African entrepreneurs. A new social media platform called IDEAME is dedicated to collecting the best crowdfunding ideas throughout Latin America. A Chilean video game called Pewen Collector, inspired by the Mapuche tribe, is an IDEAME success story and has currently launched.

International crowdfunding is certainly an enticing possibility, but as more extensive and diverse projects are launched to would-be investors every day, proponents of the growth of global collaborative investing need to acknowledge the successes and drawbacks of doing business in the world's crowdfunding community.

For anyone wishing to act globally, the growth of crowdfunding platforms -- and the increasingly creative uses of the crowd's resources -- has resulted in a dynamic partnership between innovators and their markets. Take the pristine Yasuni National Rainforest in Ecuador, which was threatened when an oil reserve was discovered underneath it in 2007. A crowdfunding initiative to protect the land raised $116 million by the end of 2011, with further fundraising efforts ongoing. One top crowdfunding platform that specializes in global diversity, Indiegogo, has helped fund a breadth of projects that includes a liver transplant in the Congo, emerging musicians in Australia and the production and marketing of a 3D consumer printer in the United Kingdom. In countries like Ireland and Australia, indigenous crowdfunding efforts have united to create a nationwide trend toward supporting creativity and entrepreneurship.

Of course, like anything peppered by new challenges as it grows, the globalization of crowdfunding has some unique obstacles. The laws governing investment crowdfunding, for instance, vary from country to country and often make funding across international lines impossible. The U.S. Senate has sought to address this problem with a bill called the "CROWDFUND Act," which adds measures to the JOBS Act to allow SEC-approved crowdfunding platforms to seek contributions from smaller investors. As investing law seeks to keep pace with the burgeoning crowdfunding trend, some would-be investors have been hobbled by legal limitations that keep the boundary lines intact. As lesser developed nations with looser economic guidelines jump on the crowdfunding bandwagon, investors are likely to gravitate toward startups and creative ventures with fewer restrictions and an easier road from concept to reality. Consistent crowdfunding guidelines across national borders might be an impossible dream, but the more countries fall in line the more a true global marketplace can begin to take shape.

Every few months a new nation seems to shape its own crowdfunding identity -- Australia, the UK and Ireland have each become collectors of crowdfunded success stories. But another drawback in the global picture of crowdfunding is the fact that smaller, poorer nations lack the resources to make their voice heard in the crowdfunding community at large. And the trend is still tilted towards the United States and a few other nations like Australia -- Kickstarter is the world's largest crowdfunding website but it still only sets up accounts for American initiatives. The Unreasonable Institute, an initiative that offers 6-week mentoring fellowships to social entrepreneurs around the world, has experienced the disparity between developed and undeveloped nations firsthand with its Marketplace project. Through Marketplace, crowdfunders can contribute to the accounts of Institute fellow finalists, but some 85 percent of the contributions come from donors the entrepreneurs know, putting worthy finalists like Narcisse Mbunzama, a former child soldier from the Democratic Republic of the Congo who has launched a company to aid farmers called Mobile Agribusiness, out in the cold. In the first 15 days of the crowdfunding drive, three American finalists raised $10,000 each. Mbunzama only raised $70.

With an estimated $2 billion a year raised by crowdfunding, the vision of spreading those dollars and the resulting big-ideas-made-reality around the globe is certainly one to be pursued. With consistent crowdfunding legislation, equitable platforms, and the recognition of the rich potential lying untapped in less visible nations, crowdfunding can become a global phenomenon with the power to unify and enrich the world. (http://ownyourhollywood.com)

To learn more about the author please follow on Twitter @imranmukati or visit www.imranmukati.com
To learn more about Own Your Hollywood please follow us on Twitter @OwnUrHollywood

Our other articles on crowdfunding:

The Crowdfunding Bill Just Might Save Entrepreneurship
Crowdfunding Successes Offer Hope for Creative Ideas from Entrepreneurs

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

By Imran Mukati & Katie Soo (www.ownyourhollywood.com)

Los Angeles, CA -- (ReleaseWire) -- 03/19/2012 -- In the days before the Internet, new ideas in the marketplace were often tested using focus groups -- an assortment of people in a room testing a product and giving feedback to make that offering more appealing to the masses. But today's technology, which allows international collaboration and instant response to ideas, has birthed crowdfunding, a financial model to raise capital for business ventures by everyday people that provides grassroots funding to an initiative and thereby instant feedback – trumping focus groups because it allows people to put their own money behind an initiative. Thus it gives everyday investors instant ownership and allows the healthy expansion of the marketplace of ideas.

Since crowdfunding has surged in popularity due to websites like Kickstarter and Mobcaster, there are a number of creative ventures and entrepreneurial efforts that have launched successfully, all because their customers invested funds and confidence in the startup from the ground floor. Currently, "donators" can receive returns in non-nominal forms such as coupons, insider access to launch parties and film openings, and credits within the film or company website. The breadth of projects boosted by crowdfunding are as varied as the people who donate, but what follows are six notable success stories:

- Blue Like Jazz: The Movie. This film adaptation of Donald Miller's bestselling postmodernist book chronicles the journey of Miller from a devout Southern Baptist childhood to the ultra-liberal Reed College and beyond, tracing his personal spiritual journey along the way. In September 2010 the movie was in production when the project was put on hold because of insufficient funds. Miller and director Steve Taylor announced through a blog post that the popular book might never reach the big screen. A few days after that post, two fans in Tennessee launched a website called www.savebluelikejazz.com and collaborated with Kickstarter to raise the $125,000 that was needed to complete the film. The crusaders reached that goal in 10 days, and by the end of 30 days they had tallied $345,000 from more than 4500 contributors, making Blue Like Jazz the largest crowd-sourced project in American history. The movie, which opens on April 13, has been selected as an entrant in the 2012 South by Southwest Film Festival. "It calls me up into a new level of excellence," cinematographer Ben Pearson told Relevant Magazine. "It's not Steve's film, Don's film or my film anymore. It's everybody's film."

- E&M Labs. When two former software engineers from Menlo Park created a snap-together kit so that anyone could make a desktop version of an ancient catapult called a trebuchette, they needed funds to create, market and distribute their unique product. They created a Kickstarter page with a goal of $48,000. When the campaign closed in April 2011, they had doubled that mark, with $96,248 from 1,876 backers. As they moved ahead with their trebuchettes, the two visionaries started a second Kickstarter initiative for their new product, Skallops, a construction kit that uses wooden laser-cut clips and ordinary playing cards to build almost anything. The implementation of the Skallops plan was not as expensive -- E&M Labs only set a goal of $7,300 -- but they had collected $65,904 when the drive concluded in February.

- Triptych Brewing. The brainchild of three entrepreneurs from Illinois with disparate backgrounds in brewing, business and the law, Triptych Brewing looked to crowdfunding to provide the equipment and startup dollars for their distributing brewery, which was conceptualized as a combination of traditional techniques and cutting-edge brewing technology. With a goal of $20,000, Triptych offered backers incentives like limited edition pint glasses and an invitation to a one-one-one beer tasting when their facility opens. Triptych's Facebook page gave daily updates of its Kickstarter campaign, which closed in February with $25,312 that exceeded the trio's goal. With funding in place, Triptych leased a building in Savoy, Illinois and started converting it into a brewery with hopes for a summer 2012 opening.

- The Order of the Stick. Unlike many crowdfunding projects, the Order of the Stick was not a startup when it launched a drive to solicit fans for donations. Rich Burlew is a comic book illustrator based in Philadelphia whose stick-figure comics have gained a cult following on the Internet. Burlew printed some compilations of his work several years ago, but he has struggled to find the funds to reprint when the volumes sell out. Enter Kickstarter, which Burlew used to set a fundraising goal of $57,750 to reprint at least one of the books, "Order of the Stick: War and XPs." When the campaign concluded on Feb. 21, Burlew had more than doubled his goal, with $1.25 million pledged from a dizzying 14,952 different backers.

- 99% (The Occupy Wall Street Collaborative Film). This documentary combined the efforts of a team of filmmakers in 18 cities across the U.S. with the goal of chronicling the widespread Occupy Wall Street protests that gripped the nation in the fall of 2011. With untold hours of footage, the film's directors used Kickstarter to raise the funds needed to sort, edit and produce a film that honestly portrayed the people and convictions that drove the Occupy movement. The film exceeded its fundraising goal of $17,500, raising $20,420 with 299 backers by January 13, 2012, with hopes that the movie could be launched just a few months after those donations were processed.

- Back to Your Senses. As she conceptualized her idea of an episodic TV series called "Back to Your Senses," Michigan-based filmmaker, artist and writer Andrea Claire Maio turned to Mobcaster to help with the show's financial foundation. Similar to Kickstarter but devoted solely to funding independent television, Mobcaster started a campaign for Maio to pay for the pilot of her series, which examines the journeys of people who have found a way to make the work they love into a vocation. The show will examine, "passionate visionaries who has committed to doing something they love, and have taken a lot of risks in order to do that," Maio said in a video used to pitch her idea on Mobcaster. She requested $15,000 and exceeded her goal, with $15,250 pledged by the 192 individuals that Mobcasters refers to as "execs."

Crowdfunding is still a nascent concept, but successful ventures like the ones profiled above are a testament to its unlimited potential to fund the types of projects that the public really wants to be able to watch, read or buy. Crowdfunding is subject to a type of natural selection; if an entrepreneur pitches an idea that doesn't appeal to people, then backers won't step up and the idea won't get off the ground. But for these two films, two building toys, one brewery, one comic book series and one television pilot, the people have spoken out in a way that resonates with our economy -- with their money -- and the world's consumers are the better for it. (http://ownyourhollywood.com)

To see our other article please click: The Crowdfunding Bill Just Might Save Entrepreneurship

To learn more about the authors please follow us on Twitter @imranmukati & @katiekat.

To learn more about Own Your Hollywood please follow us on Twitter @OwnUrHollywood.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm

By Imran Mukati & Katie Soo (www.ownyourhollywood.com)

Los Angeles, CA -- (ReleaseWire) -- 03/15/2012 -- It's no secret that the economy isn't what it used to be, but a bill introduced in the US House of Representatives last fall by Rep. Patrick McHenry (NC-10), which was passed overwhelmingly, might hold the key to a major jump start for budding entrepreneurs who are currently hampered by SEC rules and other regulatory burdens.

The bill, H.R. 2930, has the support of President Obama. If it passes as presented, the future will look much brighter much quicker for everyday people with great ideas but a lack of resources for funding them. The bill, which is now part of the JOBS ACT CLICK HERE FOR THE JOBS ACT , is a pivotal part in making crowdfunding a viable way for entrepreneurs with great ideas to raise capital in an economy where access to funding remains difficult. Before getting into the specifics of the bill and the potential effects it could have on future startups, let's first examine what crowdfunding truly is, what its history looks like, and the hurdles it will allow new companies to overcome.

What Is Crowdfunding?
Crowdfunding is an offshoot or cousin of crowdsourcing, which is a term coined by author Jeff Howe in 2006. Crowdsourcing is the practice of gathering information, input, and ideas from a large group of people, and essentially putting them in charge of the decision-making process for whatever the project happens to be. Historically, if the public were to get involved in something widespread, it would be done through Town Hall meetings in the case of political affairs, or through organizational meetings in the case of private ventures or local affairs. With the advent of the information age and social media sites, the opportunity for people nationwide or even globally to participate and have a voice in things has become as easy as firing up the laptop or desktop.

A simple example of crowdsourcing would be something similar to a local merchant who wanted to come up with a slogan for their new business. In times past, they could send out postcards asking for ideas, have people stand in front of grocery stores to survey people as they went in and out for ideas, or even make phone calls throughout the community. Today, through sites like Twitter and Facebook, the same merchant could get ideas from all over the world, and from many varied types of people - in a much quicker span of time. Being able to tap into the widespread resources directly on the web has many advantages. Different regions, professions, cultures, and more can help give a broader vision and perspective to an idea, as well provide additional choices and options for the company to consider.

The crowdsourcing idea first moved to crowdfunding within the charity and nonprofit space, where it has largely remained because of legal restraints which have been around since the 1930s. Charities began using the principles of crowdfunding a long time ago through television telethons and other similar fund raising techniques. However, the reach of social media sites are much greater than a television station, whether a national or global station. By collecting only half of a standard donation amount from ten times the amount of donors, charities and non-profits can exponentially grow their donations, and this is exactly what they have set about doing in recent years.

Take the Superbowl XLV for example. According to Nielson, it was the most-watched program in television history, bringing in 162.9 viewers, easily making their commercial buy one of the most sought after for large brands. Volkswagen purchased a 30 second spot showcasing a little kid dressed in a Darth Vader costume, using the force to move his belongings, and eventually – his family's VW Beetle. Leveraging the reach of social media, they launched their 60 second full ad version on YouTube, accruing millions of views before Packers and Steelers even took the field. To date, it's been watched 51 million times just on YouTube alone. There currently are over 500 million people on Facebook and the majority of them visit the site regularly. Many, as you are undoubtedly aware if you have many friends who use the site, keep tabs on their wall and posts throughout the day every day. For more than 50 percent of the world's population under 30 years old, these social media platforms have become a primary source of communication. According to Erik Qualman's Socialnomics, gamers are expected to spend more than $6 billion on virtual goods by 2013 This means we are now looking at an audience willing to spend through social mediums. With the World of social media becoming the most reliable source of marketing, crowdfunding not only gives the purchase power back to the consumer, it automatically builds in a strong database for whatever topic you're funding for. By tapping into this vast database of social media users for even very small donations, say one dollar or less, the potential for raising millions of dollars quickly becomes a very real possibility.

The Problem
Crowdfunding in the last couple of years has seen great success in many creative and individual projects apart from the successful ventures of non-profits and charities. Movies, books, albums, and other arts projects have found funding through crowfunding sites like Kickstarter and Rockethub, among others. The successes prove that the idea works and that there are people who are willing to supply funds in this format to ideas and projects they believe in.

A problem arises when crowdfunding is desired for funding a new business idea for a startup company. There are regulations in place from the SEC and other Federal agencies which make this form of fund raising unavailable to businesses for the purposes of investing, which at this present time seems particularly ridiculous. The fact is, these rules are more than fifty years old, and given the current job climate, they simply are not in sync with the advancements in technology in the digital age of information we live in. Government, as evidenced throughout history, has not adapted to the speed and pace of cultural, social and technological advancements. While people can contribute at will to startups, their only legal return on investment right now are token gifts and the success of the venture. As the law currently exists, they cannot expect or legally receive any return on their money in the form of shares or dividends. Crowdfunding, however, will be the game changer.

The Solution
Rep. McHenry's bill has been lumped in to a larger bill introduced by House majority leader Eric Cantor (R., VA) called the Jumpstart Our Business Startups (JOBS) Act, which just passed overwhelmingly last week in the House with a 390-23 vote. While the President appears to be in favor of the measure, the more liberal members of the Senate could hold up the passage of the package just as they did Rep. McHenry's bill last fall.

There are six areas in which the JOBS Act will help entrepreneurs to gain funding for new ideas, create new and innovative businesses, and create more private sector jobs. All of these measure relate to SEC regulations and restrictions being lifted, even if only temporarily.

The Reopening Capital Markets to Emerging Growth Companies Act would allow temporary relief from some SEC regulations and make it easier for companies to go public.

The Access to Capital for Job Creators Act would remove an SEC regulatory ban on small businesses using advertisements to attract investors, making it easier for them raise capital.

The Entrepreneur Access to Credit Act would eliminate the restriction on small businesses using crowdfunding to raise money as described earlier in this article.

The Small Company Capital Formation Act would help small businesses go public by raising the SEC threshold for exemption by 10 times, from $5 million to $50 million.

The Private Company Flexibility and Growth Act would allow small private companies more room for growth, raising the threshold from 500 employees to 1000 before a company must go public.

The Capital Expansion Act would allow the number of shareholders allowed to invest in a community bank to increase from 500 to 2000. Community banks are some of the largest lenders to small businesses, and this act would attempt to lighten the regulations these banks face in order to allow them to lend more.

All of these acts together could open the floodgates on new small business startups, showering the market with new business opportunities, and in turn, immediately creating thousand of new jobs for an economy that desperately needs them.

In analyzing the success of previous crowdfunding ventures, it should be proof enough for the need to pass these acts. If the current restrictions which prevent contributors from becoming actual investors are lifted, small businesses and startups will be able to advertise, promote and take in investments from the everyday person who believes in their concept. Not only will this shorten the wait time for companies waiting for capital, it will increase the revenue stream of those willing to participate and invest.

The best ideas always come from the private sector, from the person who suddenly comes up with a brilliant concept while in the car, dorm room, or while sitting at their dining room table. The restrictions and corporate competition with major funding keep these dreams from coming to fruition. The more we allow those who dare to dream to build, expand on, realize, and monetize their ideas, the faster our economy will grow, moving us towards a stronger economic future.

The Opposition
There are those on Capitol Hill who have criticized this measure because they say it is not comprehensive enough, nor does it go far enough to create new jobs, but is that a valid reason to oppose the bills? Their only complaint seems to be that they want more done, so it stands to reason that they would support the measures to open the door to small businesses, and then move onto whatever else they need to bring to the floor that will create job opportunities. Certainly, any opposition to these bills will be seen for what they are sure: pure partisan politics with no thought of the small business sector or the common people in mind.

It is vital that these bills pass both the House and the Senate. It's likely that President Obama will sign them into law immediately.. If the bills are passed and enacted immediately, the job market could see staggering growth by the end of the summer, which in turn would give the President a huge boost in his campaign.

Just Do it
Regardless of the political implications, the impact on the national economy as well as the pursuit of a better life for the everyday man would be huge. For someone to understand that, no matter how big or small, they could take an idea and have it possibly funded within days or weeks through the hundreds of social media outlets that may be ready to go live within minutes of the bills passing, is the definition of hope, the true American dream.

We are anxious to see what innovative ideas will stem from our global communities when, and if, the bill passes – We may even have a few of our own to pursue. All it takes is a piece of paper and a dream to build success. Why not share that with like minded individuals who are willing to support, fund, and collaborate on bringing creative concepts to life? With the right people and resources, ANYTHING can become a reality. http://ownyourhollywood.com)" href="http://www.ownyourhollywood.com">(http://ownyourhollywood.com)

To learn more about the authors please follow us on Twitter @imranmukati & @katiekat.

To learn more about Own Your Hollywood please follow us on Twitter @OwnUrHollywood.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-3.htm