ready to invest?
Commongrounds Cooperative is excited to announce we are seeking investment from our community and supporters (that’s YOU!). That’s right - we said investment, not donations. If you invest in the project, we will pay you back. And by investing in the project, you can earn not only a market rate financial return, but also a social and quality of life return by making possible a building designed to make the community we love even better. Are you ready to join with your neighbors to help make 416 E. Eighth Street a reality?
All investment must come through LocalStake, a third-party website portal (think Kickstarter, but for investment). They are a broker-dealer that receives your investment and financial information. Commongrounds will not have access to your financial information. Click below to go to LocalStake and commit to invest in Commongrounds.
Need a little more information? That’s okay. Keep reading!
what do i earn if i invest?
We are so glad you asked! You can earn a financial return plus some kicking rewards — to provide a quality of life return to you and social impact to your community. You can invest in Commongrounds starting at $500; securities laws cap the maximum you can invest based on your income and assets. You must become an owner to invest in Commongrounds and your investment pays an equity-like dividend return. In total, Commongrounds is raising at least $1.5 million from community owners. We can raise up to $1 million of that total through this public investment crowdfunding campaign! And we must raise at least $250,000 in order to have access to the investment.
Notice: The government requires us to tell you - Commongrounds is conducting an offering pursuant to Section 4(a)(6) of the Securities Act. LocalStake is the intermediary through which the offering is being conducted. For a lot more information (including all the legal documents), visit the Commongrounds page on LocalStake.
Commongrounds has two options for investing: a traditional return or a social impact return. We will start paying a return a year after we complete the building (so we can hit the ground running). Investors must leave their money in the project until Year 7 and you earn a “bonus” for keeping it in through Year 10.
Quality of Life Returns - Your Rewards!
While your money is invested in Commongrounds, you earn some extra quality of life returns. Unless otherwise indicated, rewards run from building completion until 2029 or an investor withdraws their investment (whichever happens first). We couldn’t fit all the fine print on the website, but please be aware the rewards are subject to restrictions applicable to the item, such as time of day, availability, and other reasonable restrictions.
+ All levels $500+
- Investor-only building preview tours (before building is officially open)
- Free Admission to Grand Opening “Sneak Peak” Party
- Free Admission to annual gratitude celebration
- Investor swag
- Community investor days (2x per year - free events and food/drink discounts)
- Name on recognition wall
+ $2,000 - $9,999
- Beverage discounts available daily in new building ($1 daily brew (Higher Grounds), 10% off first cocktail (Iron Fish). Coffee discounts start immediately.
- 1 free Commonplace coworking day pass every month
- 3 free Table Movement Studio classes per year (after building complete)
- 1 ticket to a show at the listening room, including early access to choose tickets
- Need something more concrete? How about a “brick” with your name in building.
+ $10,000 - $49,000
Same as $2,000+:
- Free annual basic Cooperative membership every year (~$100+ annual value)
- 1 free Table Movement Studio class/month
- 2 free tickets to 2 listening room shows, including early access to choose tickets
- 6 month Higher Grounds coffee subscription
- 10 hours of meeting time per year (in Commonplace meeting space)
+ $50,000 - $99,000
Rewards limited to (10) investors
Same as $10,000+:
- Annual Commonplace coworking membership (value $1500+, may be donated to nonprofit)
- 3 month Table Lifestyle membership (6 sessions - choose from massage, personal health/movement coach, nutritionist and unlimited classes in movement studio)
- 2 tickets to 6 listening room shows, including early access to choose tickets
- 2 free nights/year in cooperative suite (onsite owner residence)
- Free use of gallery event space for private party at Iron Fish Distillery, includes free guided distillery tour for guests (use by 2020) (limit 3) (guest responsible for event planning and food/beverage costs)
- Private Higher Grounds coffee cupping and tour for 6 people
- Large plaque/brick with your name in building
Rewards limited to (5) investors
- Annual coworking membership (value $1500+, may be donated to nonprofit)
- Free barn rental for private party, family reunion, corporate party, or wedding at Iron Fish Distillery (Saturday excluded, must use by end of 2020, guest responsible for planning/beverage and food costs) (market value up to $4400) (limit 3)
- 4 tickets to 6 shows OR use of the listening room space for one day
- 6 month Table Lifestyle membership (6 sessions - choose from massage, personal health/movement coach, nutritionist and classes in movement studio)
- 1 week/year in cooperative suite (may be donated to artist retreat)
- Higher Grounds consultation on a personalized home brewing system and a HG Coffee Bar credit up to $200 towards your personalized home brewing system
- Large plaque/brick with your name in building
Commongrounds is working to positively impact our community. By investing in the project, you help to provide more workforce housing, more childcare, more public art, more arts events, more green infrastructure, more jobs, more cafe space on the river, more nonprofit/small business office and coworking space for incubation and learning, more event space for community…. and you help to support a group of tenant-partners who are working together to create an integrated space for community building.
If you choose the social impact return of 1.5% instead of the tradition return of 7%, the cooperative will direct remaining interest for social impact rewards towards community and quality of life impact rewards (5.5%). The cooperative board will determine the use of funds on an annual basis and report to member-owners on impact. Areas of social impact investment might include: affordable housing; subsidized child care; public art; green infrastructure; community education; and wellness (general public, owner, nonprofit, business).
how do i invest?
All investments are made through LocalStake, a secure online portal (think Kickstarter, but for community-based investment crowdfunding). LocalStake is a third-party intermediary. Below is an overview of the steps to invest on their site. If you have any questions about using their website or placing investments, please contact firstname.lastname@example.org.
Step 1: create an account at www.localstake.com.
LocalStake is your first step for details on investment. You can view limited information on the public website, but to unlock additional documents and information about the project, click the green button to “commit to invest” and create an account.
Step 2: Learn about the investment & “commit” to an amount.
Step 2a: Review the legal documents and terms at LocalStake. Optional: Attend an info session or schedule a one-on-one meeting.
Step 2b: Choose an amount to “commit to invest” on LocalStake.
Step 3: Invest cash or retirement.
Add your investment account and financial information to LocalStake. LocalStake is a secure portal and will keep your information confidential. If you want to invest retirement funds, you will need to set up a self-directed IRA (see link below).
Still have questions? See the FAQ below. You also can schedule a one-on-one meeting with a Commongrounds representative using this online scheduling widget.
Some Frequently Asked Questions….
(More coming soon…)
This investment crowdfunding thing is neat. Why haven’t I heard of it before?
Historically, securities laws have made it illegal for small businesses to publicly advertise for investment from “non-accredited” investors. So, small businesses were limited to seeking investments from the bank, relatives, or wealthy people (“accredited” investors). However, the laws started changing a few years ago and new regulations allowing investment crowdfunding came into effect in 2016. Investment crowdfunding is becoming increasingly common, but most of us are still used to thinking of “investment” as something other people do, or do for us.
What is LocalStake?
LocalStake is an online portal focusing on community-based investment crowdfunding. Think “Kickstarter” but for investment! They are a third party and will keep your your investment and personal information secure. They also will hold your investment in escrow until Commongrounds has raised the minimum amount required to release the investment.
Why do I have to create an account at LocalStake in order to see investment information?
Investments are heavily regulated by state and federal governments. Both LocalStake and Commongrounds Cooperative must advertise investment and accept investment in specific ways required by their regulations. Sometimes that requires us and our investors to jump through some hoops. Thanks for your patience with the process!
Can I sell my investment to someone else, like I could Wall Street stock?
Nope. There is not yet a legal secondary market for investment crowdfunding.
You said the regulations cap what I can invest based on my income. What is my cap?
The regulations create a sliding scale cap based on your income and net worth. You can read more on the Securities & Exchange Commission website. However, the language itself is a little confusing, but here is a chart the regulations provide to help understand what your limit is likely to be: