Entrepreneurs in Charlotte now have the opportunity to seek funding outside of venture capital.
Charlotte-based WIMS Consulting, founded in 2014 by Mike Simmons, is partnering with crowdfunding campaign management company Arora Project and marketing agency Striders Group to assist startups in launching effective equity crowdfunding campaigns.
Simmons said the idea behind the initiative is to give startups and small businesses an alternative to traditional venture capital funding. They're focusing efforts predominately on Charlotte and Miami but plan to expand into larger East and West Coast cities.
Arora Project, which has helped entrepreneurs raise more than $75 million globally, and Striders Group, the firm behind DiscoverCLT, are both Miami-based. Simmons said it was their proven track records in the crowdfunding space there that made the collaboration a no-brainer.
In addition to the financial component, Simmons said the companies will collaborate on marketing, customer relationship management and public relations efforts to ensure the campaigns are as effective as possible.
"It only seemed natural [for WIMS] to explore getting into equity crowdfunding because I do a lot of work with software, technology and professional service companies," he said. "This is such a good fit and a good model for a ton of Charlotte companies here in the fintech, software and health-tech space."
Simmons said a virtual meet and greet and informational session is scheduled for Sept. 10. Founders, entrepreneurs and business owners interested in learning more about the initiative are invited to attend.
Equity crowdfunding, he said, is best suited for companies that have had trouble raising venture capital or simply don't want to go the VC route.
"With a VC or private equity firm, they tend to be able to dictate the terms [of the funds] a bit more," Simmons said.
Equity crowdfunding, however, allows the folks who have a personal interest in a company to become unaccredited investors in the business.
"A good candidate for this type of fundraising would be a company with a loyal fan base that has a local presence, especially if they are doing something specific that a community can rally around," he said. "To be able to get your community to participate in something like that with companies they know and love is incredible... It's significantly more personal."
