Some projects we are currently working on:
As part of the Center for Community Ownership’s efforts to catalyze local and community-focused investment, we are launching the Local Investing Action (LIA) Network in 2023, with a twelve-month cohort of individuals looking to increase their local investing activity and community leaders cultivating their local investment ecosystems.
Read more and apply to participate here.
Pink Bench Distilling recently completed its successful capital raise on Crowdfund Montana. The Center for Community Ownership worked to prepare and support their investment crowdfunding campaign. Facebook here. Instagram here.
The Center for Community Ownership is excited to be working with the Fairground Neighborhood Revitalization Association (FNRO) and Agriculture for Community Restoration Economic Justice & Sustainability (A.C.R.E.S.) to create a community-owned grocery store in north St. Louis.
Read more about A.C.R.E.S. Director, Tosha Phonix, and her vision for the project here.
The Center for Community Ownership is partnering with Invest York Road, a project in Baltimore that is creating a model for under-resourced communities to purchase and manage commercial real estate. For more information, visit the Invest York Road website.
The Center for Community Ownership is supporting the Pacific Northwest Rural Broadband Alliance as it raises capital to build high-speed broadband internet networks for under-served communities across the region.
The Center for Community Ownership was proud to serve as a mentor for the first peer learning cohort for Exit to Community, a global movement to advance understanding about - and use of - community ownership models for businesses and entrepreneurs. More details on Exit to Community here.
The Center for Community Ownership supported national crowdfunding platform, Crowdfund Mainstreet, in its creation of a web portal dedicated to businesses and organizations in Montana that want to raise capital. This new platform, Crowdfund Montana, is a place where people can find opportunities to invest in Montana, and where business and organizations can crowdfund either debt or equity capital for their ventures.
If you are a Montana-based business, entrepreneur, startup, or nonprofit interested in raising capital from your community, please contact the Center for Community Ownership for more information about how to get involved.
Read more about Crowdfund Montana in this article in the Lake County Leader.
Crowdfund Montana Featured on ABC/Fox Montana
ABC/Fox Montana did a story on Crowdfund Montana. Watch on the ABC/Fox Montana website or below.
Crowdfund Montana Launch Event Video
Crowdfund Montana held an online event for its launch. Check it out for info on how the platform works:
10 reasons to use Crowdfund Montana (CMT) to raise funding and be part of the growing movement to move your money from Wall Street to Main Street!
YOU NEED THE MONEY, AND YOU CAN’T GET IT FROM A BANK OR PRIVATE FUNDERS.
Loans have dried up. Angels and VC’s are only interested in high-growth/fast-exit deals.
YOU EXPONENTIALLY INCREASE THE POOL OF POTENTIAL INVESTORS. ANYONE can invest!
And you can accept or reject potential investors at your discretion.
YOUR INVESTORS BECOME YOUR BEST CUSTOMERS AND EVANGELISTS.
Use your marketing budget to sell your securities WHILE selling what you do! AND investors usually increase their purchases from the companies they invest in.
YOU SET THE TERMS OF THE DEAL.
Sell any kind of investment you want—equity, debt, revenue sharing, etc.
YOU KEEP CONTROL OF YOUR COMPANY AND DON’T SACRIFICE YOUR COMPANY’S MISSION.
Angels and VC’s can change your company’s direction or replace you and your colleagues.
CMT IS LED BY ATTORNEYS WHO ARE EXPERTS.
Investment Crowdfunding is a highly regulated industry where compliance matters.
YOUR COMPLIANCE DOCUMENTS PROTECT YOU AND YOUR INVESTORS.
Your offering is vetted and approved by industry experts, and transparency in your disclosures reduces the risk of disappointing investors.
YOU CAN EXIT TO COMMUNITY.
When you are ready to retire, you have the option to sell your company to the community that has supported you and your business.
YOU CAN ADVERTISE THE OFFERING PUBLICLY.
No need to keep it private—tell the world you are raising money in a more inclusive and democratic way!
ONGOING REPORTING REQUIREMENTS.
For most companies using Investment Crowdfunding there will only be one report filing in the tax year following your raise. This report helps you stay in touch with your investors and keep them informed.
Investment Crowdfunding as an Economic Development Tool
What is Investment Crowdfunding?
Investment Crowdfunding is a small business financing tool that became legal at the national level in 2016. Under Title III of the JOBS Act, also known as Regulation Crowdfunding, small businesses can make offerings of investment opportunities (including equity, debt, convertible instruments, etc.) on intermediary platforms that are registered with the SEC and members of FINRA. The minimum investment is usually set at $100 to $500, making it possible for people of all levels of wealth and income to invest in businesses they love. Small businesses can now raise up to $5 million per year under Regulation Crowdfunding.
How Investment Crowdfunding Can Address Small Business Funding Challenges
The lack of access to supportive, patient capital is the number one reason for small business failure. Only 17% of small businesses have access to institutional loans or venture capital funding. Investment Crowdfunding allows any small business to access community capital.
Since 2016, more than $1.1 billion has been invested by 1.3 million investors through Regulation Crowdfunding. Campaigns have been launched by businesses in over 1,300 U.S. cities and in all 50 states. According to data collected by Investibule, over 70% of women- and person of color-led businesses reach their funding goals, which is higher than the average success rate.
The Role of Local Government and Philanthropy
Investment Crowdfunding is a powerful tool that should be implemented by economic development agencies and organizations that are focused on building robust and sustainable small business ecosystems. The potential that Investment Crowdfunding has to bring retail investors to the table means that you are no longer on your own when it comes to supporting underrepresented founders who want to use their small businesses to bring jobs and character to their local communities.
We can fix the lack of appropriate capital for small business by growing the pool of investors to include community members who value local small businesses and artists and want to move a small portion of their investment portfolio from Wall Street to Main Street.
Small business supporters can facilitate investment crowdfunding success by hosting workshops and events to bring community investors and small businesses together and facilitate the growth of a local investment ecosystem.