Monday October 16, 2017 0 comments
DENVER -- Invest Local Colorado kicked off its investment crowdfunding platform with the listing of Paradox Pride, a Western Slope startup business engaged in the farming of hemp and extraction of hemp oil for healthcare applications.
“In rural Colorado, we don’t need consultants. We need capital,” said State Sen. Don Coram, a Paradox Pride principal, during a press conference at the state Capitol.
Coram said investment crowdfunding gives the ordinary person a chance to participate in investment offerings and financially support the small businesses that create the new jobs within rural communities.
Coram noted Paradox Pride is creating jobs in Nucla, a small town facing an economic downturn after the closure of its power plant.
Coram praised Invest Local Colorado for establishing its investment crowdfunding platform and providing Paradox Pride with the expertise to raise money through this new capital source.
A listing by a business on the Invest Local Colorado platform has three levels: a short paragraph, a business summary page and a proposal for financial support page.
To conform to federal and Colorado law, only individuals who have demonstrated they are state residents of may view the offering of Paradox Pride and other capital campaigns listed on the Invest Local Colorado platform.
Invest Local Colorado said it has developed a unique business model to manage demonstration of residency and meet the objective of the Colorado Crowdfunding Act to enable low-cost capital campaigns by Colorado businesses.
It has established the Colorado Capital Club as an association of Colorado residents who have an interest in financially supporting Colorado Main Street businesses.
For an annual fee of $10, Invest Local Colorado provides members of the Club with education materials and programs on ‘Investing in Main Street’ published by the Local Money Marketplace.
The fee also covers the cost of verifying state residency. Only members of the Colorado Capital Club can see proposals and invest in businesses, social enterprises and community projects listed on the Invest Local Colorado platform.
“We studied and experimented with many different possible business models,” said Karl Dakin, president of Invest Local Colorado.
“Unlike other crowdfunding platforms that are focused on wealthy people, we wanted a low cost approach that would empower ordinary people to financially support Main Street businesses.
“These businesses always face the challenge of ‘access to capital’ which hinders innovation and the startup and growth of small businesses.”
Invest Local Colorado said it is now engaged in making the 4.3 million adult residents of Colorado aware of this new opportunity to support Main Street businesses through workshops, presentations at civic and business organizations, publishing information on its platform and by supporting fundraising co-ops.
Organizations interested in having a speaker on investment crowdfunding at one of their meetings are encouraged to contact Dakin at [email protected]
Invest Local Colorado said it is also in negotiations with several existing and startup organizations about listing their investment crowdfunding campaigns on its platform. It is projected that it will list 40 to 50 capital campaigns during the next 12 months seeking to raise a total of over $25 million in funding, ILC said.