Last week MIBiz reported a somewhat surprising result of the MEDC’s grant-matching initiative (Public Places Community Spaces Initiative). I wrote about this initiative in a prior post.
The MIBiz article headline:
“State-backed crowdfunding initiative hits 97% success rate in first year”
This is an amazing success rate by any calculation
As stated by Ebrahim Varachia, president and co-founder of Detroit-based Patronicity
“It is quite rare…[to see crowdfunding initiatives with that level of success]”
What Projects are being funded?
Its worth looking at the type of projects that were successfully pitched to the public and funded, per MIBiz:
“They range from a historic manufacturing building restoration in Calumet and a recreational sports complex in Sparta to an outdoor soccer field a few blocks from the Capitol Building in Lansing and a public art installation in downtown Grand Rapids. They also include a neighborhood opera house in Detroit and a new pavilion along the Kal-Haven trail in Southwest Michigan.”
What is the take away?
Although equity-based crowdfunding still carries with it a lot of open concerns and uncertainty, the latest success of the MEDC’s initiative at a minimum shows that
people are willing to invest in projects that will enhance their local community.
This is what makes local equity-based crowdfunding attractive for social entrepreneurs.
A Social entrepreneur whose business model is rooted in serving some facet of your local community – there is a place for you and your business.
Questions? Comments?
e-mail: Jeshua@dwlawpc.com
Purpose Driven General Counsel 