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Press Release
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Breakaway Funding Issues Second White Paper, Establishing Business Case for Financial Institutions
To Adopt, Implement Crowdfunding Sausalito, CA—June 9, 2014—Breakaway Funding LLC (www.breakawayfunding.com) today issued the second of a three-part white paper series which provides the steps that local financial institutions need to implement in order to make crowdfunding a viable offering in their funding strategies. Entitled “Crowdfunding 101 for Community Banks,” the paper can be downloaded at http://www.breakawayfunding.com/forbanks/#whitepaper. Co-authored by Breakaway Funding founder/managing partner Kim Kaselionis, and CommunityLeader Inc. CEO/co-founder Joseph Barisonzi, the paper provides community bankers with the information about and an understanding of crowdfunding that will allow them to immediately implement a crowdfunding strategy. It also explains the four key components of the JOBS Act of 2012 and their relevance to banks. “As with any new market, the first step to participating is an educational one,” said Kaselionis. “The reception of our first step was outstanding. Part 1 (“Banking with Purpose”) was issued mid- May and Part 3 (“Sink or Crowdfund”) is scheduled for release later in June. Breakaway Funding, created by Kaselionis in late 2013, provides a funding portal for capital raising ecosystem through the lens of community bankers. In the past decade, more than $6 billion has been raised in the crowdfunding arena, but local community banks have captured virtually none of the market. “In 2012, frankly, most bankers were still recovering from the recession,” said Kaselionis, former CEO/chairman of the highly successful Circle Bank which recorded 53 consecutive profitable quarters before she directed its above-book-value sale to Umpqua Bank. “And while they might have been interested, they simply didn’t have the resources to investigate the possibilities that crowdfunding presented. “When I left Circle, I asked myself, ‘why can’t community banks have a portion of that market?’ Over the past six months, I have been conducting meetings with bank CEOs, hosting seminars and workshops,” she said, “and I have begun to notice the proverbial light bulb turning on. “The interest in raising capital via crowdfunding is certainly there among small businesses,” she said, citing four funding/investment opportunities offers now available on the Breakaway site. “Our initial deals and several that we have in the pipeline are clear demonstrations that the market exists.” CommunityLeader was established in 2012 to help organizations understand and operate in the regulatory environment created by the JOBS Act. “The new opportunities that the JOBS Act created have the potential to help community banks, small businesses and investors work together to build strong local economies. Those who adopt early will find themselves both beneficiaries and leaders in their respective fields,” said Barisonzi. The three white papers are available, without charge, by visiting the Breakaway website at www.breakawayfunding.com/forbanks/#whitepaper. “Our website has been designed to blend social networks and technology to open new doors that spur economic development and local job creation,” said Kaselionis, “while allowing financial institutions to build their balance sheets, grow revenues and foster customer loyalty.” About Breakaway Funding LLC About CommunityLeader |