Bohemian Guitars: “First In The United States” Equity Crowdfunding Campaign On SparkMarket

sparkmarketOffer Ongoing As Minimum is Reached.

Georgia-based SparkMarket has announced the success of the first crowdfunding campaign on their equity platform. Bohemian Guitars has hit their goal of crowdfunding $100,000, raising money to grow their budding guitar-making business. SparkMarket is calling it a first in the United States.

This campaign is the first in the United States to successfully utilize general solicitation to both accredited and non-accredited investors via a crowdfunding platform in a federal and state registration exempt transaction in over 80 years (since before the Securities Act of 1933), and the first in the Internet age.

 

Bohemian GuitarsBohemian Guitars is a Marietta-based manufacturer specializing in funky, decorative guitars made out of oil cans. They completed a successful Kickstarter campaign earlier this year, raising over $54,000 on a $32,000 goal. Bohemian leveraged SparkMarket to raise money from both accredited and non-accredited investors, capitalizing on the notoriety brought by their successful Kickstarter campaign in the process.

The company’s campaign page on SparkMarket will continue to collect both equity and rewards-based pledges.

 


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  • Trents

    It would be interesting to hear the media write about what is in it for investors. Equity in a Guitar company? What is the exit for investors? How do investors get their $130k back?

    • http://www.crowdfundinsider.com/ Charles Luzar

      The answer to that question is simple. There is a good chance that they won’t get their money back. Crowdfunding doesn’t do anything to change failure rates among startups. It’s risky business.

      Having said that, what they do get is an equity stake in a small company, something that isn’t possible in most states at the moment. They get to support a local company and local employees. They also get a chance at upside that is extremely rare in the public markets.

      Secondary markets would put some liquidity in these types of investments, but we’re not quite there yet.