While the adoption of investment crowdfunding has varied greatly on a state-by-state basis, INVESTinNC is seeking to boost North Carolina’s effort by encouraging small business owners and investors to participate through two specifically designed campaign models.
An individual campaign would be considered a typical investment crowdfunding campaign in which an individual business owner would prepare their application, submit it for approval, and upon approval, begin raising money by communicating their offering to North Carolina residents that may have interest in investing.
Assuming approval and compliance, these can be run by anyone at any time but the burden of success falls on the individual to promote their offering in a way that connects with potential investors.
Designed to group individual issuers together in a “six-pack,” the participating companies prepare and file their applications individually. Upon approval, they have the ability to begin fundraising on their own but with the much-added benefit of the six-pack being promoted to affinity groups or specific geographic areas that represent the commonality under which the six-pack was formed.
Veteran-owned, minority-owned (coming soon!), and woman-owned companies represent issuers that can be collected into six-packs and promoted as a whole. As would geographically specific six-packs created to feature companies based in individual cities or markets.
By promoting the six-pack offering though group-specific economic development organizations or like-minded individuals accessible through traditional and social media, these issuers create a larger buzz and invite potential investors to review all offerings in hopes of finding one or more in which they would like to invest.