MichiganFunders, the state’s homegrown equity crowdfunding platform that welcomes both accredited and non-accredited investors, announced Detroit City Football Club as the first offering hosted on its platform since launching a redesigned portal in August.
The platform was design to address the ever-changing landscape of intrastate crowdfunding regulations and to continue efforts to democratize the small business investment process. It provides another source of capital for local entrepreneurs and Michigan-based businesses, connecting them with residents who are able to make small security investments in them under the Michigan Invests Locally Exemption (Public Act 264, 2013).
The community-based campaign is considered Michigan’s largest“community-based investment project to date,” and one of the largest in U.S. sports history. Owners of the semi-pro DCFC team intend to raise the necessary amount of funding for rehabilitation of Hamtramck’s Keyworth Stadium, which DCFC plans to call home beginning in 2016.
Niles Heron, co-founder of MichiganFunders, explained:
“We haven’t seen many deals of this stature and size on a national level yet. The DCFC deal actually offers prospective financial return, and exiting perks to its investors, so it combines elements of ‘classic crowdfunding’ too. DCFC already has one of the most exciting fan-bases in the country. Imagine if those fans could go to knew that they were a part of building their favorite team a new home and investing. That’s the economic power of a great community.”
For the past four seasons, the team has played at Cass Technical High School’s 2,500-seat field, attracting sellout crowds, increasing by an average of 18% during this past season, and garnering attention in the soccer world- driving the need for the club to play out of a bigger home venue. Keyworth can accommodate double.
DCFC co-owner Alex Wright noted:
“Michigan residents will have the opportunity to make history,”
The goal is to have most venue upgrades completed by April 2016. To commemorate its groundbreaking campaign to rehabilitate historic Keyworth, next May DCFC will host FC United of Manchester, arguably the most celebrated supporter-owned club in Europe.
The team at MichiganFunders stated that the platform empowers people from all financial standings to participate in startup, real-estate, and small business investing, and provides Michiganders the opportunity to take ownership stakes in homegrown innovations, fan favorites, and cutting-edge startups at an affordable buy-in rate.
Due to the deals on MichiganFunders being limited to verified Michigan residents, the platform conducts zip code verification and IP address screening before new users can register to see diligence documents or offering terms. A full public-records residency verification is conducted prior to accepting any investment into escrow.
David Tessler, co-founder of MichiganFunders, added:
“MichiganFunders is excited to bring this deal to Michigan’s residents. DCFC as a perfect example of the kind of business that lives right in the sweet-spot for intrastate crowdfunding, and parallel opportunities for deals like these continue proving the power of communities.”
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