Campaign already raised more than $17 million from more than 4,000 investors
Crowdfunding is definitely revolutionary. And equity crowdfunding, specifically, is going to change the way investments are made, especially when bank loans and stock exchanges don’t look very appealing, as in the case of startups.
One example of that is the successful Elio Motors pitch, which raised more than $23 million from more than 6,000 non-accredited investors in a few days, 95% of its goal so far.
The project is led by Paul Elio, an automotive enthusiast who claims his two-seater car project can help Americans cut transportations costs, as his automobile is capable of achieving 84 MPG. He proposes an American made car, generating American jobs, which is certainly a good pitch to attract media attention.
But the key aspects here are how popular crowdfunding is becoming and how it is simplifying the fund raising process. Thousands of people who would never be considered potential investors could see the offer and act upon it. They are normal people, working regular jobs, throwing a little money into a risky project, but they can also see huge gains if such project succeeds. And that is the real revolution here.
The Elio Motors project looks pretty sound however and destined to be successful. After all, Elio claims (on the project’s homepage) that more than $18 million worth in car reservations have already been made, so investors already can expect big sales numbers. The new car will cost only $6,800 by eliminating unnecessary accessories and keeping the mechanics pretty simple. Working together with top suppliers, such as Bosch, Continental, Aisin, Lear and CooperTires, among others, the pitch seems to be a safe investment.
Maintenance was also properly considered and, according to the project, is not likely to be a problem. Elio is partnering up with Pep Boys, a chain with more than 800 locations in 35 states and Porto Rico.