Invest in the Change you wish to see..
“Be the change you wish to see in the world.” We can thank Gandhi for this enlightened encouragement to live our convictions. Well Vermonters I am happy to let you know that you can now invest in the change you want to see in the world by allocating some of your spare change to local entrepreneurs and startups. Thanks to a relatively little known piece of legislation out of Montpelier known affectionately as VSBO (pronounced VIZ – BOW) Vermont Small Business Offering – all Vermonters can now invest in local companies looking to grow.
Vermont, I am proud to say, is on the cutting edge of the rapidly emerging Equity Crowdfunding Industry. You may be familiar with Crowdfunding platforms like Kickstarter, GoFundMe, or Indiegogo. The original idea behind these platforms is that people who are looking to raise money can create an online campaign seeking donations from the Crowd. The majority of Crowdfunding campaigns to date have been “Reward Based” campaigns. Reward meaning that for your generous donation to someone’s business or project, you the donor are awarded some type of free gift. My brother-in-law (Will Evans) for example raised money on a Crowdfunding platform that he used to secure studio time to record an album (check him out at http://willevans.com/ ). The reward for donating to Will’s studio time – A Free CD!
Equity Crowdfunding is slightly different in that instead of receiving some type of an award for your donation, you receive the opportunity to take an ownership stake in the enterprise. Let’s assume Will Evans the musician was incorporated, Will Evans Inc. Will Evans Inc. could raise money on an Equity Crowdfunding Platform and may expect to take in more money for the simple fact that his donor base is now and investor base. Would you be more inclined to donate your money for the chance of receiving a small token of gratitude, or would your rather invest your money for an unlimited opportunity to receive a financial return? Imagine that instead of receiving a free CD you’d have the right to share in the profits generated by the CD sales. Your investment in the music you love could have return to you in real money. Now do you think Will minds sharing these profits? No way. He knows that because you will earn money based on his album sales that you will more than likely go out of your way to actively promote the album. And of course you would!
Now that is one example. What if your local coffee shop offered you the same opportunity? Or your favorite VT brewery made an offering?
Consider all of the benefits.
You of course stand to make money on your investment. Who wouldn’t like to earn more on their money (especially with today’s low interest rates).
You might make an effort to buy locally to support your local economy. Investing locally is the logical next step. Your invested dollars can help create jobs and support your neighbors.
You can invest in the “change you want to see in the world,” that is YOU decide on the types of companies you want to invest in. By investing local you are closer to your investment and have a better chance to see how your dollars are being used. You can follow the companies you invest in to see their values in action.
Right now there are companies who are looking to raise money and the investor base is forming. You have the opportunity to get involved right now at the grassroots level and participate in what we at ECFI (Equity Crowd Funding Institute) believe is the next wave in the revolution of finance.
If you are a Vermonter, and are interested in learning more please visit our friends at www.milkmoneyvt.com
Invest in the change you wish to see in the world.