Securitized investment offerings bridge the gap between traditional and digital finance by developing private securities as standardized plug-and-play alternative investments that are quickly liquid, dividend-paying, asset-backed, and non-dilutable.
March 28, 2023 from Scottsdale, Arizona and San Diego, California: GSDFuel and Funded have joined forces to empower clean energy companies with the capital they need to grow and scale their companies. This initiative also provides investors with the opportunity to invest in fully vetted offerings and fund the next generation of world-changing clean energy projects. These securitized private security investment opportunities provide a variety of benefits over typical equity investments to both the issuer and the investor.
Convergence of Digital Securities and Regulated Securities
GSDFuel and Funded are bridging the gap between traditional finance and digital finance by securitizing the profit streams of renewable energy companies and then helping these issuers connect with qualified investors. The benefits of this approach include:
- Fast path to liquidity on an Alternative Trading System (ATS)
- Defined/Forced dividend payments untethered from majority equity shareholder discretion
- Fixed total market supply which eliminates dilution risk
- Asset-backed until first distribution which provides downside risk protection
Dan Kelly, Founder of GSDFuel, adds “Through our proprietary process, we design and deploy securities that not only create incredible growth opportunities for investors but also for the company and its founders. In short, whenever there is a finite supply available of anything, mixed with a strong demand, the market is willing to pay more for that item. This logic directly correlates with the net present value of our clients. The company is almost always the largest shareholder of the outstanding total supply – similar to public companies. This means that the company treasury is elevated as the underlying share price increases on the ATS. When this happens, the entire ecosystem is rewarded as the company is producing a greater net asset value.”
Leveraging SEC Compliant Regulatory Pathways
GSDFuel and Funded are leveraging three key regulatory pathways that offer a variety of benefits for these clean energy companies:
- Regulation D 506(c) – which allows companies to sell and issue securities to accredited investors in the United States. Under Rule 506(c), there is no limit to the amount of money that can be raised plus issuers can advertise their Regulation D 506(c) offering to the general public.
- Regulation S – which compliments Regulation D by allowing companies to raise additional funds from investors outside of the United States.
- Regulation A – which allows companies to raise up to $75M from both accredited and non-accredited investors in the United States. Marketing the Regulation A offering to the general public is also allowed.
Ryan Frank, Founder of Funded, adds “The JOBS act truly opened the door for these three regulatory pathways as private companies are now able leverage marketing campaigns to drive qualified investors to help fund their business. This puts the issuer in the driver’s seat when it comes to capital raising and provides a variety of benefits over the traditional Broker-Dealer approach.”
About GSD Fuel
GSDFuel identifies best-in-class companies, acts as a strategic advisor, and works with them to design a private security instrument that delivers unparalleled profit-sharing opportunities all while helping the planet. To learn more about GSDFuel, visit: www.gsdfuel.com
About Funded
Funded provides end-to-end capital raising solutions for Reg D, Reg S and Reg A capital raises. Funded has a proven track record of planning and executing capital raising campaigns for a variety of companies in the clean energy space. To learn more about Funded, visit: www.funded.capital
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