Our Crowdfunding Network Is Growing Part 32

Today we formally signed the operating agreement for Inner 10 Development. I spent a lot of time with our local attorney and the securities attorneys from Dinsmore on our TTW-like document for soliciting investors and we talked through the workflow. My partner and I will be piloting the process for an investor to work through an actual raise and solicit interest tonight and we are going to talk it through with the attorneys for the balance of the week. I'm not expecting everything will be streamlined and formalized this week, but hopefully we'll at least have something we can use to promote deals.

Thought needs to be given to what we'll offer investors and how deals will be structured. A mezzanine debt structure may work, but we'll probably err on the side of doing a preferred equity arrangement since that is what we're the most used to. We're trying to not let perfect be the enemy of good so I wanted to get something up to start talking to people and we'll use a deal that is not time sensitive to relieve a lot of the pressure. We'll learn a lot based on conversations with investors.

I am set to meet with Joel Block about notionally starting a new portal now that the crowdfunding conference is in our rear view mirror. I am hoping we can get started on that in earnest in June and hopefully have something skeletal working in the July or August time frame. The securities laws may slow things down some, but I don't expect for it to take too much longer than that.

We'll see how things go. We should have a lot of options about where to list deals soon. iFunding will be our go-to third party portal and we'll probably pilot a raise on Inner 10 Capital soon. Once our new portal is operational we'll have to see what makes the most sense. Fundrise is still an option, but I don't really like their terms so I am not really spending much energy there right now. We still get steady investor flow from the site, but I am not sure what incentive we'll have to list things there now given our other options that are easier and add more value for trying to raise the money.