Invest Local Colorado LLC has launched its investment crowdfunding platform with a listing of a capital campaign by Paradox Ventures. This action raises a number of questions:
- What does this mean?
- Why is it different?
- Why should you care?
You may have heard of crowdfunding. You may even have participated in a Kickstarter or Indiegogo campaign. However, you probably have not invested in a Main Street business located in Colorado. This is a local business where you may shop, where one of your relatives may be employed and which pays taxes to support your schools, for your safety and for city, county and state buildings and roadways. Typically, your investments are completed through your employer where your money is put into a mutual fund representing a list of businesses whose profits may never come to Colorado.
Investment crowdfunding allows you to participate in the upside of a local business. Any form of investment has some degree of risk – ranging from very low to very high that you may not get your money back. This risk can be offset if it is a business where you shop. The business can offer you price discounts on their products or services that may be greater than the amount of your investment.
A local business can offer benefits to every resident of Colorado that are not available from a business that is outside of Colorado or outside of the United States. These benefits can be realized without making any investment at all. Simply by sustaining and growing, a local business contributes to the economic health of the community by hiring people and paying taxes. Some businesses actively support local charities, participate in community organizations and projects and serve to attract other businesses into the community.
Crowdfunding in Colorado is now possible through the Colorado Crowdfunding Act, a law passed in 2015 that we sponsored. It rolls back 80 years of securities laws and regulations that resulted in wealth discrimination. The result was that the 3% of the population (accredited investors) were making nearly 100% of the investment decisions that benefited only 2% of the businesses seeking capital. Local Money Marketplace PBC is dedicated to improving access to capital by improving Colorado’s capital eco-system.
Paradox Ventures is a new company that is just completed harvest of its first crop of hemp. It has entered into a lease of the old schoolhouse in Nucla, Colorado owned by West End Economic Development Corporation where it will be extracting hemp oil for use in a variety of healthcare products. http://www.paradoxpride.com These new jobs will help a community affected by the closure of the power plant and local mines. See the recent article in the Denver Post: http://www.denverpost.com/2017/10/27/montrose-county-west-end-revamps-rural-economy-with-hemp-less-mining-uranium-colorado-divide/
Instead of seeking money just from wealthy people who meet the definition of accredited investors, Paradox Ventures is seeking to raise up to $500,000 in money from ordinary people – any resident of the State of Colorado. A person may make an investment for as little as $500. For this financial support, Paradox is granting non-voting stock. In addition, they have teamed up with Ambary Gardens of Kittredge, Colorado to offer price discounts of 10% to 25% on the products Ambary Gardens will make with hemp oil (CBD) extracted by Paradox Ventures. https://ambarygardens.com/
Paradox Ventures has listed its capital campaign on the Invest Local Colorado platform. To learn more about Paradox Ventures, you may go the platform. http://www.investlocalcolorado.com/campaigns.
For a small annual fee of $10, you may become a member of Invest Local Colorado’s Colorado Capital Club where you can learn about how to financially support a Main Street business and you can invest in businesses like Paradox Ventures. Members of the Club will receive a free copy of our Investing in Main Street Workbook and will receive passes to Investing in Main Street Workshops.
Investment crowdfunding now gives you the capability to support those businesses, social enterprises and community projects in Colorado that you like, that you want to see succeed and whose success can help Colorado’s economy, particularly in those communities that are not experiencing the growth of Denver. Any savings on products or services that you buy and any possible return on investment just creates greater value.
If you are interested in the economic health of Colorado, you should consider all the places where you may shop over the next 12 months and ask yourself if you would like to help that business grow. Envision a future where you have a stake in a number of local businesses that know your name, value your opinion and appreciate your loyalty.
Investment crowdfunding is that powerful.
Karl Dakin, President
Local Money Marketplace PBC