Earlier today, Crowdsourcing.org streamed a roundtable discussion between Michael “Hutch” Hutchinson, noted speaker and the Chief Revenue Officer at CommunityLeader, and members of the CommunityLeader executive team on what crowdfunding can do for various businesses. The panelists were also on board for a simultaneous live chat with the audience to answer questions about the discussion and about crowdfunding in general.

CommunityLeader is an online marketplace connecting a wide variety of private companies and prospective investors into a single intelligent network for accessing and managing crowdfunding opportunities. To find out more about the platform, please visit the CommunityLeader website.

Below is the full video of the roundtable discussion, as well as the transcript of the chat that took place during and following the video stream. We hope you enjoy the webinar and join us in the future!

Joseph Barisonzi
We are happy and excited to answer your questions --

Jennifer Amys is a serial entrepreneur. She was part of the management team that took CH robinson public.

Scott (who is here with us today) has been working to build and grow small business all across America for decades. He is an invaluable resource for businesses considering a crowdfund raise.

The intent of the JOBS act was to get economic development going again in the small business sector.

I think that point can't be overemphasized -- there are real implications to a business of selling stock into the crowd that need to be considered.

I was meeting with a great company that has designed a professional speaker system for recording studios. There community is the people who work in professional sound. It isn't based in Long Island, it is around the world. This company and its principals are known in that community. They are considered leaders. It is a great example of a business community.

Guest 312
What are the advantages of crowdfunding over kickstarter?

Joseph Barisonzi
Kickstart is a donation to your company. Crowdfundin is selling equity.

If you can get people to donate to you to launch your business -- that is awesome! Do it!

Crowdfunding will be for the business that don't fit the "kickstarter" profile.

Adam Attanasio
Kickstart also has major limitiations for technolgy driven company an how you can raise funds

Guest 312
Can any size business use crowdfunding?

Joseph Barisonzi
Where people aren't going to donate to the local manufacturer to expand the laser cutting floor.

Businesses with revenue of less than 1B a year are eligible for the crowdfunding exemption.

Guest 121
What's the latest news on SEC regulations?

Joseph Barisonzi
The latest news on the SEC regulations is that the can is being kicked down the road a little bit.

The Commissioner has promised rules by the end of the year.

Eric Blattberg
For more details: http://www.crowdsourcing.org/editorial/sec-will-miss-deadline-on-jobs-act-advertising-rules-says-schapiro/16359

Joseph Barisonzi
The good news is that it seems FinRA is soliciting feedback on their own interpretation of the rules. http://lawprofessors.typepad.com/securities/2012/07/finra-seeks-comment-on-regulation-of-crowdfunding-activities.html

Guest 121
Once they are published, how long will it take CommunityLeader to implement the regulations?

Joseph Barisonzi
Thank you for that question Guest 121 -- It of course depends on the actual rules, but our team -- lead by rick -- believes that our process will be ready to launch as early as the SEC allows.

Guest 312
How will businesses interested in crowdfunding find the investors who are best suited for them?

Joseph Barisonzi
Great question about finding the investors Guest 312 -- there will be several ways. We believe based on experience that the best way will be leveraging their exsisting social capital in communities they are already engaged in.

One of the preparations business can engage to "get ready" is establishing a leadship position in those communities in preparation for the "ask"

Eric Blattberg
I have a question: what will separate CommunityLeader from other equity-based crowdfunding platforms like Crowdfunder and Fundable? Related, perhaps even the same question: how do you intend to establish a leadership position in the space?

Joseph Barisonzi
I can't speak to the others platform. I can speak to what we believe that we will do extrodinarily well:

1. A fully compliant process for business to develop, and support a campaign. Far more than just a matching engine or a "craigslist" of opportunities.

2. A business development process that will address many of the appropriate concerns that business owners will have and should have in their development process

3. An investor application that allows for a focusing of the offering to people that match the desired investor profile.

Each of these systems will be able to be used by multiple portals and companies -- perhaps even Fundable and Crowdfuner!

Guest 312
Are there specific industries or types of industries that are best suited for crowdfunding?

Guest 508
What are possible exit strategies for investors?

Joseph Barisonzi
Thank you for that question about industries Guest312 -- I don't think that industry is as important as the company's story and it's ability to connect with prospective investors.

For every industry there is a group of people who know, follow, and appreciate that market.

That is the base of potential investors.

Great question about exit strategies! Each company will need to design an exit strategy which works for them. While it is unlikely that regulation will require an exit strategy-- our platform will -- we think it is a best practice everyone should follow.

The best exit strategy is the company growing and building the cash reserves to buy back their stock. It is highly likely that secondary markets could also emerge.

Guest 121
What about fraud? Aren't scammers gonna jump all over this?

Joseph Barisonzi
Guest 121 -- yes. there will be scammers and charletons. We are building our system to really weed out the businesses that are not real and solid. All of the trades must happen through a crowdfunding intermediary -like CommunityLeader. These intermediaries will be taking on significant liability. Each will have standards to ensure that the investment offers they support are good.

Eric Mack
everyone still with us?

Adam Attanasio
yes

Joseph Barisonzi
oh yes!

Guest 121
Something in the video just caught my ear... what about companies that don't have financials yet... If I don't have financials to share, can I post with you?

Joseph Barisonzi
It will be a legal requirement to have financials. All intermediaries will require financials to submit to the SEC.

Guest 312
When should a company get involved in crowdfunding, can it be used for startup companies or that already have other financing?

Guest 121
Even for businesses that haven't opened their doors yet?

Joseph Barisonzi
Your financials might be empty but you will need accounts that can be properly reported.

Crowdfunding is the sale of equity in an existing business. You can't sell equity in a business that doesn't exist.

Thank you for the question about when a company should get involved in crowdfunding. It can be used at all stages of development -- regardless of the other financing choices. What is important is that the amount you will be able to raise will be impacted by the amount of and types of funding you have secured over the past 12 months.

Eric Blattberg
I want to return to the topic of fraud for a second. You mentioned that CommunityLeader, as a registered intermediary, will take on significant liability. While I imagine you'll be able to weed out most fraudulent "businesses" upfront, what happens if one slips through and, in effect, steals money from naive investors? Does CommunityLeader have a process in place yet to cope with that possibility?

Adam Attanasio
Do you need to be a C or S corp

Joseph Barisonzi
Great question Eric. We are exploring a variety of solutions -- which include staggering the distribution of the money from escrow and investor insurance. We will announce them as part of the package when we do a full launch!

Adam: Great question. Yes. You will need to be a C or S corp in almost all situations.

Adam Attanasio
So if you have been a partnership or LLC, you will need to file as a C or S and then financials from the point of incorporation?

Joseph Barisonzi
Yes. And showing the historical record of the partnership/LLC may end up being important as well.

Adam Attanasio
that would be great

Joseph Barisonzi
CommunityLeader is accepting applications for betas right now. These will be the first 100 companies that we bring to market on our platform.

Adam Attanasio
We have both our Flagship product, as well as a few new and exciting projects we are getting ready to launch. We are looking at funding solutions for both, and would value your input

Joseph Barisonzi
Thank you all for joining us. That ends the video portion. We are here live to answer questions, respond to points -- or simply listen!

Eric Blattberg
Would you recommend a business conducting an equity-based crowdfunding campaign also try to raise some capital via a pledge-based crowdfunding platforms? What are the pros and cons of doing both?

Michael Hutchison
Happy to hang out and answer any addl questions?

Thank you for joining!

Guest 312
What is your CommunityInvestor application like compared to what other platforms are doing?

Joseph Barisonzi
I think that the CommunityInvesotr application -- designed for the investor -- is a real integrated solution for investors. Providing them the resources to make a disciplined and informed choice.

It also allows for an investor to link their existing qualified accounts.

Guest 233
when is crowd funding expected to have final regulatory approval?

Joseph Barisonzi
Full regulatory approval is expected (but not gauranteed) for the first quarter of 2013

Adam Attanasio
Joseph, you have my contact info please feel free to contact me when you are free.

Guest 958
Is there any way I can view the video again?

Joseph Barisonzi
I will Adam! Thank you so much for joining and participating.

Adam Attanasio
thank you for your time today

Joseph Barisonzi
Yes Guest 958, the video will be loaded to our YouTube Channel, and will be available from our Facebook page, and our webiste directly.

Eric Mack
That was really excellent. Thanks everyone for joining us.

Guest 233
Good info. Thanks for the chat.

Anton Root
Very interesting video and chat, thank you everyone!

Guest 156
The only question I have is when do you plan to do another video this was very informative?

Michael Hutchison
Our focus is to help busines owners get educated and get all their questions answered

Joseph Barisonzi
Thank you for coming Anton! Please do not hesitate to hit our team up on live chat directly from communityleader.com again.

Michael Hutchison
Yes we will create content often

We are also scheduling education workshops throughut the US

Joseph Barisonzi
Guest156 -- We would love to do another video to answer questions. Be sure to sign up on our website and you will get notified. Hutch is so excited to make more of these!

Michael Hutchison
Where are you located?

CommunityLeader
You can want the video again here: http://youtu.be/EwdxeXpkn5Q

Joseph Barisonzi
What topics or questions would you like us to do in a future video?

CommunityLeader
Guest 156- You can watch the video again here: http://youtu.be/EwdxeXpkn5Q

Guest 156
I think including one of your clients and showing us their journey

Joseph Barisonzi
That is a great idea! We are currently bringing on board our first set of betas -- and documenting their story would be great!

Michael Hutchison
Great suggestion!