Trending...
- EFLOW FX Introduces Multi-Family Real Estate Investment Plan Accepting Crypto and Fiat Investors
- Partnershoring: Pioneering Strategic Collaboration for Commercial Success in the New Economy
- Josh Weil Announces Campaign for Congress in Florida's 6th District
The U.S. initiative is backed by UBS and the Annenberg Foundation and centers on an innovative form of capital raising called equity crowdfunding
NEW YORK - Floridant -- The ARC Fund launched three Community Rounds today to support underrepresented impact entrepreneurs raise growth capital between $250,000 and $5,000,000 over a three-month "equity crowdfunding" campaign using the Wefunder platform in response to the scarcity of capital as venture capitalists hold on to funds due to the uncertain economy, banks lend less, and interest rates remain high, forcing startups led by underestimated founders to find alternative sources of capital to survive and grow.
The Kauffman Foundation reported that nearly two-thirds (65%) of new businesses will use personal and/or family savings to cover their startup costs. Without an innovative source of capital to provide a "bridge" round to get startups through this tough economic period over the next few years, many overlooked entrepreneurs will close their doors.
Wefunder empowers entrepreneurs to crowdfund capital from individual investors due to a provision in the 2012 JOBS Act which allows unaccredited investors to purchase equity in early-stage private companies in the United States for as low as $100 per person.
More on The Floridant
The ARC Fund has launched Community Rounds with the following underrepresented impact entrepreneurs:
One of the most significant issues in the startup world is the underrepresentation of women and entrepreneurs of color in venture capital funding. Studies have consistently shown that these groups face systemic biases that hinder their ability to secure investment. Equity crowdfunding helps close this gap by providing these founders with a more accessible path to capital.
For underrepresented impact entrepreneurs accepted into the program, the ARC Fund will prepare the crowdfunding online campaign page seen by investors, write a video script, lead a launch-day investor webinar, provide strategy sessions and coaching to the entrepreneur, build a campaign calendar, work with Wefunder on administrative steps, and more. Hatchet Ventures will also provide hands-on advisory support to founders facing startup challenges tied to operations, product development, pricing, customer acquisition, and marketing strategy, among others.
More on The Floridant
An equity crowdfunding round means that a startup lets thousands of its customers, users, and fans invest alongside venture capitalists and angel investors. Crowdfunding rounds leverage Regulation CF, where an entrepreneur can raise a maximum of $5,000,000 per year from unlimited investors. Anyone can invest, not just accredited investors. All investors in a Crowdfunding Round are rolled up into a Special Purpose Vehicle and thus represented by one line on a cap table.
About The ARC Fund
The ARC Fund (www.sisomni.com/arcfund) is an alliance of companies, foundations, and organizations supporting underestimated entrepreneurs and proximate founders through equity crowdfunding campaigns (community rounds) on Wefunder. The ARC Fund addresses the growing need for alternative sources of capital in this challenging economy, especially for entrepreneurs who often face barriers accessing traditional venture capital, while strengthening pathways to democratize investing by giving all people the ability to purchase equity in early-stage private companies in the United States for as low as $100 per person. UBS and the Annenberg Foundation are funding partners of the ARC Fund, with additional partnerships with Wefunder and Hatchet Ventures.
Disclaimer: We are gauging investor interest in an offering under Regulation Crowdfunding. No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder's platform. Any indication of interest involves no obligation or commitment of any kind.
The Kauffman Foundation reported that nearly two-thirds (65%) of new businesses will use personal and/or family savings to cover their startup costs. Without an innovative source of capital to provide a "bridge" round to get startups through this tough economic period over the next few years, many overlooked entrepreneurs will close their doors.
- By the end of 2022, adverse market conditions led to a 36% drop in overall venture capital dollars, but Black entrepreneurs saw a 45% decrease in financing.
- Women-only teams secured only 2.8% of venture capital in 2023, the lowest in four years.
- In 2020, Black and Latinx founders only represented 2.6% of all venture capital funding ($2.3BN).
- Nearly 20% of all startups have raised money at a lower valuation than they had previously, up from 5% in 2021, according to Carta.
- More startups shut down in the third quarter of 2023 since Carta began tracking the data almost five years ago; more than 543 startups on Carta's platform have shuttered.
Wefunder empowers entrepreneurs to crowdfund capital from individual investors due to a provision in the 2012 JOBS Act which allows unaccredited investors to purchase equity in early-stage private companies in the United States for as low as $100 per person.
More on The Floridant
- OneSolution® Dental Implant Centers Offers Advanced Zygomatic Dental Implant Solutions
- Magazine features Pink and Main in its December issue
- Unbeatable Value Sponsorship Opportunity Announced for Love Eat Travel Series on PBS
- Kuruma Imports Hosting Toys For Tots Car Meet to Spread Holiday Cheer
- Francesca Corbi Joins Coral Bay Recovery Clinical Team
The ARC Fund has launched Community Rounds with the following underrepresented impact entrepreneurs:
- Nopalera is a Chicana-owned clean collection of bath and body products made from the Nopal cactus, an ancient symbol of Mexican heritage and one of the most nourishing plants in the world.
- EQL Finance is committed to democratizing financial wellness through the innovative use of technology, expanded access to financial services, and compassionate care. The company's goal is to provide individuals and families from all backgrounds and circumstances with the resources and tools they need to achieve their financial objectives and improve their overall financial health.
- Maxam Hotels is a hospitality venture that is building an off-grid resort in Belize using electric car batteries. The company just completed five units on their newest project in the Finger Lakes, documented for a TV show that airs on the Design Network.
One of the most significant issues in the startup world is the underrepresentation of women and entrepreneurs of color in venture capital funding. Studies have consistently shown that these groups face systemic biases that hinder their ability to secure investment. Equity crowdfunding helps close this gap by providing these founders with a more accessible path to capital.
- When looking at equity crowdfunding success percentages, campaigns run by women-only founders had an 87.5% success rate compared to 41% for men-only founders. Minority-only founders also had a higher success rate (46%) than men-only founders.
- Startups with female founders represent between 10% and 15% of all investor crowdfunded deals since 2020, and startups with founders of color represent between 10% and 28% of all investor crowdfunded deals since 2020.
For underrepresented impact entrepreneurs accepted into the program, the ARC Fund will prepare the crowdfunding online campaign page seen by investors, write a video script, lead a launch-day investor webinar, provide strategy sessions and coaching to the entrepreneur, build a campaign calendar, work with Wefunder on administrative steps, and more. Hatchet Ventures will also provide hands-on advisory support to founders facing startup challenges tied to operations, product development, pricing, customer acquisition, and marketing strategy, among others.
More on The Floridant
- "Transform Your Look with Expert Hair, Skin, and Beauty Services at McAllister Spa!"
- Security Experts to Host Conference on Deepfakes and Cybersecurity in 2025
- Pittsburgh Professional Women invites all Women and Allies to MONEY CLUB
- Speranza Dental Implant Center's New Website Launch!
- Education Through Music-Los Angeles to Host 19th Year Benefit Gala on Friday December 6th at Skirball Cultural Center
An equity crowdfunding round means that a startup lets thousands of its customers, users, and fans invest alongside venture capitalists and angel investors. Crowdfunding rounds leverage Regulation CF, where an entrepreneur can raise a maximum of $5,000,000 per year from unlimited investors. Anyone can invest, not just accredited investors. All investors in a Crowdfunding Round are rolled up into a Special Purpose Vehicle and thus represented by one line on a cap table.
About The ARC Fund
The ARC Fund (www.sisomni.com/arcfund) is an alliance of companies, foundations, and organizations supporting underestimated entrepreneurs and proximate founders through equity crowdfunding campaigns (community rounds) on Wefunder. The ARC Fund addresses the growing need for alternative sources of capital in this challenging economy, especially for entrepreneurs who often face barriers accessing traditional venture capital, while strengthening pathways to democratize investing by giving all people the ability to purchase equity in early-stage private companies in the United States for as low as $100 per person. UBS and the Annenberg Foundation are funding partners of the ARC Fund, with additional partnerships with Wefunder and Hatchet Ventures.
Disclaimer: We are gauging investor interest in an offering under Regulation Crowdfunding. No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder's platform. Any indication of interest involves no obligation or commitment of any kind.
Source: ARC Fund
0 Comments
Latest on The Floridant
- Extol, with Beadworx and Beyond Borders, Joins Fair Trade Federation to Champion Ethical Practices
- What To Know About Moving To The Middle & Upper Florida Keys
- Super Bowl champion QB Joe Theismann to speak at NAMI Collier County's 2025 Hope Shin
- Start Fresh in 2025: Florida Law Office Offers Affordable Bankruptcy Solutions and Statewide Virtual Q&A
- LRP's National Institute Announces Nine Engaging Extended-Length Symposiums
- Is This the Safest Way to Get Rich in Crypto? Experts Say Yes
- "Federal Complaint Filed: David Medeiros Uncovers Medicaid Mismanagement, ADA Violations, and Systemic Failures in Connecticut"
- Introducing Feelness: A Revolutionary Solution for Physical Self-Care Without the Fitness Lifestyle
- Omnitronics Wins Software Combined 2024 AI Innovation Award
- Altruistic Academy Hosts Friends & Family Event with Free CPR Training December 19th
- Lux Boutique Unveils Exclusive Resort Wear Collection for Vacationers in Naples, FL
- Countryside Golf & Country Club general manager receives prestigious professional designation
- Top Beauty Salon in Miami Beach – Hair, Nails, Skincare & More!
- Miami Beach's Best Hair Salon & Beauty Spa – Book Your Appointment Today!
- Mrs Elemental® USA Rebrands to Empower Married Women Across the Nation
- GET A GRIP Resurfacing Franchise Opens in Tampa
- New from Down & Out Books: MICKEY FINN VOL. 5 edited by Michael Bracken
- Sip, Snack and Celebrate: Red Lobster Announces Launch of Happy Hour
- ioTech International Launches ioRinse™MR: A Revolutionary Oral Rinse Providing Essential Relief For Cancer Patients Facing Oral Side Effects
- Better Together receives $15,000 from Gulf Coast Community Foundation to support hurricane relief