Now, Anyone Can Invest in an Oregon Business for as Little as $100

Without equitable access to capital, many Oregon businesses never make it to market — or fail shortly after. In fact, at least 83% of all entrepreneurs nationwide can’t secure traditional loans or venture financing (Ewing Marion Kauffman Foundation’s report, “Access to Capital for Entrepreneurs: Removing Barriers”). Oregon-based startups and small business owners face the same grim odds, and the capital gap is even greater for underrepresented entrepreneurs (e.g., women, BIPOC, people with limited or no access to family wealth, etc.).

Thanks to funding from the U.S. Economic Development Administration, and in partnership with Republic (New York, NY), RAIN has launched a place-based crowdfunding pilot project called the RAIN Capital Access Program (RAINcap). Here, with guidance and support from RAIN, Republic, and Palo Alto Software (Eugene, OR), Oregon companies can share vetted business plans and offer investment opportunities to the public. These Oregon businesses can raise either revenue share loans or sell equity via Reg CF and Reg A offerings to just about anyone in the U.S. who is 18 years or older. Many are seeking $100,00 – $300,000 in seed-stage capital.

A first-of-its-kind partnership

As the first partnership of its kind for both RAIN and Republic, the launch of RAINcap reminds me of my own start-up days when we were building our own technology platforms: Lots of lessons learned, missed deadlines, late nights, and tweaking along the way. But now – I’m excited to share that the platform is live and the first Oregon deal is open for investment! Arable Brewing, a woman- and veteran-owned startup, is seeking funds to open locations in Eugene and, eventually, Lowell.

We invite you to sign-up on the RAINcap crowdfunding platform (developed and managed by Republic). This is where you can view Oregon deals once Republic accepts them for investment. Currently, Arable Brewing is the only deal on the platform:

Steps to join the RAINcap group on Republic:

#1: Sign-up with Republic here: https://republic.com/register

#2: Once you are logged in, go to the RAINcap group page here: https://republic.com/group/raincap

#3: Click the “Join Group” button

NOTE: You can view the Arable Brewing deal without signing up for the RAINcap Group on Republic, but if you join the group you will be able to access other Oregon deals as they get approved by Republic. We are currently advising a dozen other startups to get them fund-ready.

Contact Robert Killen if you have any questions.

DISCLAIMER: The RAIN team will educate entrepreneurs and help them get their deal “fund-ready” according to Republic’s due diligence checklist, but RAIN will not be soliciting any deals. RAIN is educating these entrepreneurs on how to “rally their crowd,” but once that crowd is rallied, the entrepreneurs need to make the investment ask, not RAIN. RAIN will educate individuals on what crowdfunding is and how to use the platform, but will never solicit or make any recommendations on investments.

Republic reports that only 1% of the deals submitted on their main platform get approved to raise funds. However, with the backing and support of the RAINcap program, we believe that our entrepreneurs can achieve a 75% acceptance rate. The reason for this significant increase is due to our RAINcap program–where we will hold entrepreneurs' hands along their fund-ready journey. Both Republic and RAIN realize that most startups seeking funds reach out to funders before working with mentors or accelerator programs that help them think through their assumptions and validate their business plans.

“Through this partnership, Republic provides the platform and financing model, and RAIN brings the community of founders, offers coaching to help them get "fund-ready," and helps founders engage with community members seeking to back them. Oregon businesses are able to unlock an alternative financing option that was previously inaccessible – and neighbors can invest in neighbors, circulating capital within the entire state. We look forward to all of the Oregon businesses joining the Republic platform through this partnership,” Vaskis stated.

While the opportunities to invest in startup companies have for the most part only been available to high net-worth individuals, accredited investors, and investment funds, RAINcap allows individuals to help businesses in their own “backyard” start or grow by investing as little as $100. Those who invest in Oregon startups and small businesses will receive reports from these companies to monitor their progress and join in celebrating their growth.

There are limits to how much an individual can invest based on income, net worth, and any other investments made in Title III/Regulated Crowdfunding offerings.

For example:

– If you’re a non-accredited investor, you can invest $2,200 during any 12-month period.

– If your annual income or net worth is less than $107,000, you can invest 5% of the greater of your annual income or net worth.

– If both your income and net worth are equal to or more than $107,000, you can invest 10% of the greater of your annual income or net worth, not to exceed an amount of $107,000.

Guiding entrepreneurs through the unknowns of startup fundraising

RAINcap aims to help anyone in Oregon seeking funds to start or grow a business. It’s free to sign-up, and entrepreneurs will learn the ins and outs of startup financing. We provide these business owners with educational content and mentorship and then refer them to the right funding source(s). One of these educational programs is our MONEYmaker Accelerator, a 10-week virtual program where cohorts of entrepreneurs from across Oregon and beyond gather weekly via Zoom to learn about proper financial management, as well as how to raise funds.

For the entrepreneurs who qualify for crowdfunding, they will work with our business planning and financial management partner, Palo Alto Software. The Palo Alto Software team will help these entrepreneurs prepare a business plan, using their software LivePlan, and compare that plan against Republic’s crowdfunding due diligence criteria. Once this process is complete, these entrepreneurs are referred to our partners at Republic, who will work with them to determine what type of crowdfunding is best for their venture, and decide whether or not a deal is accepted onto the RAINcap crowdfunding platform.

The demand is high!

Currently, there are more than 100 Oregon businesses in various stages of the RAINcap pipeline. Many of these entrepreneurs are from underserved communities and they have been active in the RAIN ecosystem or personally referred to us by venture funds. These businesses range from cool tech inventions to food & beverage manufacturers and local brick & mortar businesses. Once a company completes our initial intake form, it can take 2-3 months for their deal to be accepted by Republic on RAINcap. However, we are actively working with our partners to expedite the due diligence process. Together, we can close the capital gap for Oregon entrepreneurs.

Funders rallying around RAINcap

In addition to the U.S. EDA, I want to thank Business Oregon and the Collins Foundation for funding RAINcap and helping us to scale this exciting program. A portion of RAINcap is also funded by the many cities and counties that have invited RAIN into their communities to help build an inclusive entrepreneurial economy.