There’s no doubt that Salt Lake City is a hotbed for entrepreneurship. Propelled by the city’s business friendly climate, local innovators, owners and operators are launching exciting new businesses—and using the latest crowdfunding laws and technology to fund them.
Regulation Crowdfunding may not be a household term, but it’s been at work to dramatically change our capital markets since May 2016. When the SEC adopted the final rules, small businesses across the U.S. were authorized to raise up to $1 million from everyday investors online.
NextSeed was the first funding portal to register with the SEC under these new regulations, and since then has empowered over 30 businesses across the country to take their capital needs to the crowd. Breweries, fitness studios, boutique hotels, restaurants and bars have raised over $9 million from thousands of investors, who can invest as little as $100 on NextSeed.
NextSeed currently has three offerings live on the platform: Salt Lake City’s upcoming MOB CYCLE; Louie King, a Texas BBQ restaurant in Dallas’s Lower Greenville neighborhood; and Pour Behavior, a bar and restaurant in Midtown Houston.
“Fundraising for a small business or entrepreneurial venture isn’t easy,” explains NextSeed CEO and co-founder Youngro Lee, who previously worked for a decade as an attorney in private equity markets. “We launched NextSeed to give entrepreneurs the power to turn their customers and fans into stakeholders in their business.”
NextSeed Case Study: MOB CYCLE
MOB CYCLE is the first Salt Lake City campaign on NextSeed. Salt Lake City natives and MOB CYCLE founders Megan and Richmond Tyrrell launched the campaign to get members of the Salt Lake City community involved in their project. MOB CYCLE invites its investors to seek financial returns and earn bonus rewards including complimentary classes and merchandise.
Megan cut her teeth in the fitness industry as the Lead Instructor, Director of Instructor Certification and General Manager at a boutique indoor cycling studio in Laguna Beach, Calif. “Indoor cycling is a tremendous force in the boutique fitness space, as evidenced by the rapid rise of SoulCycle and other players in recent years,” Megan says. “But Utah and the Mountain West region lags behind, and we believe there’s significant demand for a unique experience like MOB CYCLE here.”
The Tyrrells have eventual plans to expand MOB CYCLE throughout the Mountain West region. They have invested in developing a comprehensive and sophisticated brand identity, with the help of talented California-based creatives like architect Randall Larsen and creative director Jacob Irwin.
Anyone can invest as little as $100 in businesses they want to see succeed. For a limited time, new investors who sign up for an investment account on NextSeed will receive a $20 credit to use on the platform. Follow this link to get started.
Any views expressed in this article reflect the personal views of the author only for discussion purposes and should not be viewed as investment advice or recommendation, and does not constitute any legal or tax advice with respect to any securities.