Regulation Crowdfunding: A Game Changer for Small Businesses
I’m not a financial advisor; Superpowers for Good should not be considered investment advice. Seek counsel before making investment decisions.Watch the show on television by downloading the e360tv channel app to your Roku, AppleTV or AmazonFireTV. You can also see it on YouTube.When you purchase an item, launch a campaign or create an investment account after clicking a link here, we may earn a fee. Engage to support our work.Has your business been impacted by the recent fires? Apply now for a chance to receive one of 10 free tickets to SuperCrowdLA on May 2nd and 3rd and gain the tools to rebuild and grow!Devin: What is your superpower?Kendall: Ability to talk to people and convince them to do things.The passage of the JOBS Act in 2012 opened new doors for entrepreneurs, enabling them to raise funds from the general public through regulation crowdfunding. This shift has been nothing short of a game changer for small businesses that previously struggled to access capital. Securities attorney and entrepreneur Kendall Almerico has been at the forefront of this movement, helping companies navigate the regulatory landscape and successfully raise funds.Kendall first recognized the potential of crowdfunding during the 2008 financial crisis when he stumbled upon Kickstarter and saw the Pebble Watch raise $10 million without offering investors equity. This moment sparked a realization. “If they ever pass a law that allows you to raise money online by selling securities, I am going to pivot my entire practice and do nothing but this,” he recalled. That law came in the form of the JOBS Act, and Kendall made good on his promise.Since then, Kendall has worked with businesses of all sizes to leverage regulation crowdfunding. The beauty of this approach, he explains, is that it democratizes investment opportunities. “The average Joe could invest $50, $100, or $200. And I just knew it would be a game changer for small business,” he said.While major crowdfunding success stories make headlines, Kendall emphasizes that regulation crowdfunding is most impactful for small businesses looking to raise modest sums—often between $50,000 and $100,000. Many of these companies would struggle to secure a bank loan or venture capital investment, but through crowdfunding, they can tap into their existing customer base and community support. “When you pass the hat at church and everyone puts in $5 or $10, at the end of the day, there’s a lot of money in that hat. This is the same thing,” he explained.One of the most important aspects of running a successful crowdfunding campaign, according to Kendall, is structuring it in a way that is attractive to investors. “You can go out and basically say, ‘I’m going to raise money at a billion-dollar valuation for my brand new company that has no employees and has never sold anything.’ You can do that. No one’s going to stop you, but no one’s going to invest.” Instead, he advises entrepreneurs to take a staged approach—starting with smaller raises, proving their model, and then scaling up to larger fundraising rounds.Kendall’s insights reflect the power of regulation crowdfunding to level the playing field for small businesses and everyday investors. By giving communities the opportunity to support the businesses they love, this model is reshaping how capital flows and who gets access to it. As regulation crowdfunding continues to grow, more entrepreneurs are discovering its potential to turn their visions into reality.tl;dr:Kendall shares how the JOBS Act transformed access to capital for small businesses.Crowdfunding enables everyday investors to support businesses, democratizing investment opportunities.Successful campaigns require strong marketing, clear messaging, and reasonable valuations.Kendall’s superpower—persuasion—helps entrepreneurs communicate effectively and raise funds.The episode concludes with Kendall sharing insights on navigating crowdfunding regulations and investor relations.How to Develop The Power of Persuasion As a SuperpowerKendall’s superpower is persuasion. With a natural ability to connect with people and communicate ideas clearly, he has helped countless entrepreneurs navigate the complexities of regulation crowdfunding.“My superpower is very simple,” Kendall said. “I’m incredibly lucky to have been born with this ability to talk to people and convince them to do things.” This talent, honed through years of experience in television, radio, and trial law, has positioned him as a leading expert in the crowdfunding space. He believes that 90 to 95% of success in regulation crowdfunding comes down to marketing and messaging—skills that rely heavily on persuasive communication.One example of Kendall’s persuasive prowess occurred when he helped a cannabis company become the first U.S.-based, plant-touching cannabis business to receive SEC approval for a Regulation A offering. Many doubted the legality of such an offering, but Kendall was confident in the regulatory framework. When the SEC initially questioned an innovative investor perk—a live-streamed cannabis plant named after each investor—Kendall engaged in a strategic dialogue with regulators. Though the perk was ultimately removed, the process exemplified his ability to challenge norms and push boundaries while staying within legal constraints. His communication skills helped the company secure approval and raise funds despite industry skepticism.For those looking to develop persuasion as a personal strength, Kendall’s approach offers key insights:Speak in clear, relatable terms. Avoid jargon and complex language when explaining ideas.Listen actively. Effective persuasion starts with understanding your audience’s concerns and motivations.Be confident, but flexible. Know when to push forward and when to adjust your approach.Tell compelling stories. Engaging narratives make complex ideas more accessible and memorable.Practice regularly. Persuasion is a skill that improves with experience and continuous learning.By following Kendall’s example and advice, you can make persuasion a skill. With practice and effort, you could make it a superpower that enables you to do more good in the world.Remember, however, that research into success suggests that building on your own superpowers is more important than creating new ones or overcoming weaknesses. You do you!Guest ProfileKendall Almerico (he/him):Securities Attorney & EntrepreneurAbout Almerico Law: My lawfirm, Almerico Law, provides securities law services related to equity crowdfunding offerings under Regulation A and Regulation CF. As a consultant outside of my law practice, I also act as the "quarterback" of my clients' offerings, supervising with management over all aspects of video production, marketing, ads, social media, public relations and anything else required to have a successful offering.Website: almerico.comX/Twitter Handle: @kendallalmericoCompany Facebook Page: facebook.com/kendall.almericoOther URL: kendallalmerico.substack.comBiographical Information:Kendall Almerico was named “one of the top crowdfunding and JOBS Act attorneys in the country” by Forbes. Venture Beat named Kendall as the top practicing attorney on their list of the most influential thought leaders on crowdfunding in the world. Inc. magazine named Kendall to its list of “Top 19 Crowdfunding Experts Startups Need to Know.” Onalytica ranked Kendall #1 on its 2016 list of the Top 100 crowdfunding influencers in the world. Huffington Post called Kendall “One of the country’s leading experts on equity crowdfunding.” Kendall and his crowdfunding websites have appeared in the New York Times, USA Today, Washington Post, Washington Times, Forbes, Bloomberg, Reuters, the New York Daily News, Business Insider, Christian Science Monitor, Fox Business Network, Yahoo News and hundreds of newspaper, blog, radio and television interviews including CNN, CNBC, CBS, ABC, NBC, FOX, CCTV and Bloomberg TV. Mr. Almerico was a regular crowdfunding columnist for Entrepreneur.com and is a highly sought after international keynote speaker. Mr. Almerico practices law with the law firm of Almerico Law in Florida.X/Twitter Handle: @kendallalmericoPersonal Facebook Profile: facebook.com/kendall.almericoLinkedIn: linkedin.com/in/kendallalmericoSupport Our SponsorsOur generous sponsors make our work possible, serving impact investors, social entrepreneurs, community builders and diverse founders. Today’s advertisers include FundingHope, Pivotal Health, SuperCrowdLA and Crowdfunding Made Simple. Learn more about advertising with us here.Max-Impact MembersThe following Max-Impact Members provide valuable financial support:Carol Fineagan, Independent Consultant | Lory Moore, Lory Moore Law | Marcia Brinton, High Desert Gear | Paul Lovejoy, Stakeholder Enterprise | Pearl Wright, Global Changemaker | Ralf Mandt, Next Pitch | Scott Thorpe, Philanthropist | Matthew Mead, Hempitecture | Michael Pratt, Qnetic | Add Your Name HereUpcoming SuperCrowd Event CalendarIf a location is not noted, the events below are virtual.Impact Cherub Club Meeting hosted by The Super Crowd, Inc., a public benefit corporation, on March 18, 2024, at 1:00 PM Eastern. Each month, the Club meets to review new offerings for investment consideration and to conduct due diligence on previously screened deals. To join the Impact Cherub Club, become an Impact Member of the SuperCrowd.SuperCrowdHour, March 19, 2025, at 1:00 PM Eastern. Devin Thorpe will be leading a session on "How to Build a VC-Style Impact Crowdfunding Portfolio." He’ll share expert insights on diversifying investments, identifying high-potential impact ventures, and leveraging crowdfunding for both financial and social returns. Whether you're an experienced investor or just getting started, this is a must-attend! Don’t miss it!SuperCrowdLA: we’re going to be live in Santa Monica, California, May 1-3. Plan to join us for a major, in-person event focused on scaling impact. Sponsored by Digital Niche Agency, ProActive Real Estate and others. This will be a can’t-miss event. Has your business been impacted by the recent fires? Apply now for a chance to receive one of 10 free tickets to SuperCrowdLA on May 2nd and 3rd and gain the tools to rebuild and grow! SuperCrowd25, August 21st and 22nd: This two-day virtual event is an annual tradition but with big upgrades for 2025! We’ll be streaming live across the web and on TV via e360tv. Soon, we’ll open a process for nominating speakers. Check back!Community Event CalendarSuccessful Funding with Karl Dakin, Tuesdays at 10:00 AM ET - Click on Events.Igniting Community Capital to Build Outdoor Recreation Communities, Crowdfund Better, Thursdays, March 20 & 27, April 3 & 10, 2025, at 1:00 PM ET.Asheville Neighborhood Economics, April 1-2, 2-25.Regulated Investment Crowdfunding Summit 2025, Crowdfunding Professional Association, Washington DC, October 21-22, 2025.Call for community action:Please show your support for a tax credit for investments made via Regulation Crowdfunding, benefiting both the investors and the small businesses that receive the investments. 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