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- W834789215 abstract "ABSTRACTThis case provides a unique look at an entrepreneur in the emergent field of equity-based crowd-funding that must choose between fulfilling his original mission of forging a new business model to obtain immediate revenue. Phil Shmerling founded InCrowd as an equity-based crowd funding platform, a platform that would have been illegal prior to federal government's passage of the JOBS Act. However, the SEC's implementation of the law was indefinitely delayed, forcing Phil to shift strategy and find other sources of revenue. Phil identifies several choices for moving his business forward, each of which poses its own set of opportunities and challenges. Ultimately Phil must choose a course that not only makes profits but also adheres to his original mission.INTRODUCTIONIn his daily perusal of the online morning news, Phil Shmerling ran across yet another article about the now-distant passage of the JOBS Act. It was early April, 2013, and though it passed almost a year ago, the implementation of the Jumpstart Our Business Startups (JOBS) Act was being delayed yet again by the SEC. The legislation that promised to open the flood gates to crowd-funding for entrepreneurs had yet to fully take effect, and there appeared to be no firm deadline for its ultimate implementation.This news would be hard enough for the owner of a fledgling start-up, but as the owner of new crowd-funding start-up based entirely upon the passage and implementation of the JOBS Act, Phil found the news devastating.Sage Advice that Started it AllThere 's no Betty Ford Clinic for entrepreneurial addicts. Shmerling, Choice Food GroupsPhil recalled the conversation that started it all over two years ago with his uncle Mike Shmerling, then a senior executive at Choice Food Groups where Phil had worked for three years. With some reservations about how he might be received, Phil approached Mike about the prospect of resigning in order to start his own crowding funding business. Phil remembered telling him that he felt as if he had no choice in the matter, that he simply had to run his own business-he felt as if it was in his blood. As a successful entrepreneur himself, Mike understood where Phil was coming from. Phil recalls fondly that Mike told him there's no Betty Ford Clinic for entrepreneurial addicts.From a very early age Phil wanted to run his own business. He was inspired by the entrepreneurial stories of friends and family, as well as entrepreneurs made famous in the media. While he felt strongly that he would one day run his own business, yet he also felt strongly that he was the type of person who would want a firm education and broad base of experience before venturing out on his own.Phil studied finance and accounting at Indiana University's Kelly School of Business, and upon graduation took a job as an investment banking analyst at Morgan Keegan in Memphis, TN. He worked there for a little over three years advising clients on complex mergers and acquisitions. His experience at Morgan Keegan was rewarding and educational, but he also developed a deep disenchantment with the inherent limitations in the investment and funding of new business ventures.In particular, Phil grew to dislike the inequities inherent in the investment landscape. He took particular issue with the inability of average investors to access burgeoning new companies. Without the requisite wealth to be certified as an accredited investor under SEC guidelines (which required a new worth of $1,000,000, or yearly annual income above $200,000), individual investors generally could not invest in companies outside of stock exchanges. Entrepreneurs were likewise limited in the methods in which they could advertise or seek funding outside of VC or public offerings, which were also heavily regulated. Phil developed an early passion for the prospect of leveling the playing field, such that 1) investors below that lofty accredited investor status could invest in businesses, and 2) entrepreneurs could get funded more easily, from a wider array of investment sources. …" @default.
- W834789215 created "2016-06-24" @default.
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- W834789215 date "2014-10-01" @default.
- W834789215 modified "2023-09-24" @default.
- W834789215 title "Incrowd Capital, Llc: Case Study and Teaching Note" @default.
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