SEC qualifies unprecedented $25M crowdfunding offering by Elio Motors
This year has marked many important landmarks in the crowdfunding space, particularly for the role of non-accredited investors.
Now, accredited and non-accredited investors alike can purchase a little piece of history with a recent announcement that marks the largest crowdfunding equity offering to date.
StartEngine, a leading crowdfunding platform, recently announced a $25 million offering to be hosted on their site by Elio Motors. Investors in the U.S. may now purchase equity shares in the company, which makes low-cost, environmentally friend three-wheeled automobiles.
Elio Motors is among the first batch of companies to receive SEC qualification under Regulation A+ rules. Through the June launch of Regulation A+ and last month’s Title III announcement, non-accredited investors, or those with a net worth less than $1 million and who earn less than $200,000 annually, may now participate in crowdfunding opportunities to a maximum amount based on their income.
“The JOBS Act was passed with the intent of helping entrepreneurs bring new technologies and innovations into the marketplace,” said StartEngine CEO Ron Miller. “Elio Motors is a perfect example of what congress had in mind.”
The offering will enable Elio Motors to exclusively work with suppliers that will produce parts for Elio vehicles in the U.S., explained Mr. Miller. The innovative two-seater cars currently have a targeted base price point of $6,800.
“Our goal is to alter the course of American transportation, and with today’s breakthrough, we are one step closer to this revolution, not just for drivers, but for anyone who believes that a good idea has the power to change the world,” said Elio Motors founder Paul Elio in a release. “We’re thrilled to open our doors to thousands of new investors, and will utilize the capital as part of our plan to begin production in late 2016.”
If non-bidding indication of interest is any sign, the $25 million goal will be quickly reached, with nearly $46 million in interested indicated on the StartEngine site to date – 183 per cent of the funding goal. Investors that want to participate in the historic offering must simply visit the StartEngine website, and the system will walk them through the process from start to finish.
Elio Motors is one of the first companies to issue equity shares on the StartEngine platform, with many more to follow. At the moment there are six offerings on the StartEngine site, one of which has already filed for SEC qualification, and two to four issuers set to come on board in the next one to two months.
Feedback from the announcement has been overwhelmingly positive, and a spike in interest has been felt on the StartEngine site.
“Activity on the platform has been extremely robust since the announcement, added Mr. Miller. “Demand has been very brisk.”
Offerings like this, made possible by the JOBS Act, have marked a new era in investor crowdfunding. As more and more small businesses qualify for such offerings, the economy is sure to see start-up innovation take flight for many years to come.