Direct Public Offering (DPO) – also known as Investment Crowdfunding – is a generic term that includes any offer and sale of an investment opportunity to the public in which anyone (both wealthy and non-wealthy) can invest. Also, the entity that is raising the funds offers the investment directly, without a middleman like an investment bank.
Why a DPO?
Until now, it has been difficult to invest locally. Investors face strict standards, and social entrepreneurs struggle to access capital that meets their needs. EDFC is proud to present a new solution: the first community-based Direct Public Offering (DPO) opportunity of its kind within the state of CA. We have developed a tool to harness local dollars and direct them toward ideas that break the mold, offering flexible terms and lower rates to borrowers while allowing investors to do something entirely different.
Old Model, New Approach
DPOs have been around for awhile. What’s unique about this one is that it’s not being launched by a single business, instead it has been created by a non-profit organization to support sustainable economic development in our community. EDFC has launched this Social Impact Investment Note to support social entrepreneurs. This time, we are directing funds to the Mendocino Wool & Fiber Mill. If this DPO is successful, we plan to offer more local investment opportunities in the future.
Source: Our friends & colleagues at Cutting Edge Capital
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