First Investment Deal of Its Kind, Boutique Luxury Hostel Races Past Crowdfunding Goal Through NextSeed
Achievement Marks Historic Moment In U.S. Crowdfunding And Small Business Financing Industries
Press Release – HOUSTON, TX – Austin -based hostel, The Native, raised $396,500 in just eight weeks from 227 investors. The team raised the funds on NextSeed (www.nextseed.co), a new investment platform that allows the community to invest directly in local businesses.
This type of fundraising was previously reserved for accredited (wealthy and high earning) investors only. Under new, revolutionary investment regulations (Title III of the JOBS Act), everyone can now begin investing in small businesses through registered platforms. Small business investing has now crossed a historic threshold, as The Native’s raise on NextSeed marks the first offering to successfully fund under the new rules.
“The community responded in a tremendous way. The Native raised over 144% of their goal, and we’re thrilled to be part of their journey,” said NextSeed CEO Youngro Lee. “This is a huge moment. The ability for everyday people to now have access to these types of deals and directly invest – this democratizes the world of finance. It changes the way businesses access capital and how we think about investing. Nearly half of the investors in this deal were Millennials who are clearly dissatisfied with the limited investment options that they used to have. Investing in a local business is now a real possibility, and it’s the type of investment that people of this generation feel closer to. This is just the beginning, and we’re working tirelessly to create more opportunities like this for both businesses and investors.”
NextSeed’s recently launched national platform has debuted three offerings since inception. The Native, a luxury boutique hostel that is launching under the leadership of Michael Dickson, Will Steakley, and Antonio Madrid, represents a unique venture that will revitalize a former warehouse and will be situated ideally between Austin’s bustling Downtown and Eastside districts. An emerging trend in other parts of the world, The Native is the first concept of its kind to launch in Texas. The funds raised on NextSeed will be put towards construction. The team was excited about offering everyday people – particularly target customers of the business who otherwise would never have the chance to invest – the opportunity to participate in the financial success of the business. Investors share a percentage of the business’s monthly revenue and earn a 2X return on their investment. They will also receive special bonus rewards, such as free stays and exclusive experiences available only to investors.
Michael Dickson shared the team’s thoughts on why they approached NextSeed to begin with. “We’ve financed other businesses in the past, and we normally would have turned to accredited investors for something like this. When we learned about NextSeed, we were intrigued by the chance to involve more of the community in the process. Our average customer for The Native probably isn’t accredited. But through NextSeed, we could accept investments as small as $ 100 and open the opportunity to people who normally would be excluded from this type of investment. And the response was huge! We’re excited that so many people are now part of our team.”
Following The Native’s offering, NextSeed has subsequently debuted two more Austin-based businesses: Vigilante Gaming Bar, a full-service bar and restaurant devoted to board gaming and nerd culture, and The Brewer’s Table, a craft brewery and restaurant concept under the leadership of founder Jake Maddux, formerly of New Belgium Brewing, Thirsty Planet Brewing, and Anchor Brewing Company.
All listings on NextSeed are debt investments. While much of the speculative hype surrounding the investment crowdfunding industry has fallen on equity investments in tech startups, The Native’s highly successful raise reflects a large area of real need – small business lending for companies on Main Street. It also reflects the demand that investors have for investing in small businesses that are creating new opportunities in the community.
NextSeed has partnered with The Native, Vigilante, and The Brewer’s Table because it is committed to driving small business investing and offering entrepreneurs a powerful platform to secure the financing they need to build and expand their businesses. On NextSeed, businesses also form a strong bond with investors who like their concept and will help spread the word. NextSeed will continue to promote its mission of helping all investors and small businesses reach their financial goals, thrive and prosper.
About NextSeed
NextSeed US LLC (“NextSeed”) is a SEC-registered Funding Portal and FINRA member. Headquartered in Houston, TX, NextSeed is an online debt crowdfunding platform that helps U.S. small businesses raise capital from any investors while showcasing their business. For more information, please visit www.nextseed.co.
NextSeed’s Texas affiliate (www.nextseed.com) launched in 2015 pursuant to Texas crowdfunding rules, and since then has facilitated over $1.2 million in business loans for Texas businesses.
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