Wilmington-based Craftspace Inc., a company that upcycles shipping containers into modular buildings, is looking to raise up to $150,000 with the help of a crowdfunding campaign.
Craftspace CEO Bryan Kristof said Wednesday that the company is looking to raise the funds to support its business and to advance its products.
The company is aiming for $150,000 through its Growth & Development Bond offering, stated the release. The deadline for the offering, which is being facilitated by Folla Capital, is May 31.
"We wanted to take advantage of this new opportunity that was started back in 2012, when they introduced the regulation crowdfunding, which allowed anyone to invest in a crowdfunding campaign," Kristof said, adding that the business has submitted the necessary forms to the SEC.
"It's just an opportunity for friends and family and others to invest [in the company] as well," he added.
Craftspace, which started in January 2020, is ramping up operations and starting production on its mobile flex space unit. The company is located in a factory on Princess Street.
"With COVID and everybody kind of cooped up at the house nowadays, we introduced the flex space as an option for a home office, a gym, homeschooling, or something of that nature," Kristof said.
The company is also looking to increase its sales force and wants to add more options to its production down the road, he said.
"We're ready to take it to the next level," Kristof said. "As far as the crowdfunding goes, I think we're one of the early adopters in our region ... so we're excited. We think this is going to be a good opportunity and a good fit for the type of business that we have."
Folla Capital is working with Craftspace to conduct a regulation crowdfunding exempt security offering on its platform, stated a news release.
The company engages in private placement securities, and other capital-raising activities, focusing on exempt security offerings enabled under the JOBS Act of 2012. The Jumpstart Our Business Startups (JOBS) Act was designed "to encourage small business and startup funding by easing federal regulations and allowing individuals to become investors," stated the release.
Folla Capital started in North Carolina in 2018, facilitating the "state’s intrastate investment crowdfunding program called the NC PACES Act," officials said in the release.
Based on that work, Folla Capital began the process of expanding nationally "to help any company, in any state, raise capital using exempt offerings, including investment crowdfunding programs," officials said in the release.
“We’ve gone down the path of having to raise money the traditional way. We know what it’s like to have to make payroll and manage cash flow," Chris Franklin, Folla Capital’s CFO and CCO, said in the release. "We want to connect small businesses to everyday investors within their local community and provide an opportunity for all.”