Another Orange County company plans to raise capital through a new crowdfunding mechanism.
San Clemente-based Image Protect Inc. has raised nearly half of its $1 million goal through a provision adopted in 2015 that allows the general public to invest in emerging-growth companies.
It aims to close the gap with a campaign on minivest.com that runs through June 1.
The minimum investment is $500.
Unaccredited investors—those with annual income below $200,000 or net worth under $1 million—can invest a maximum of 10% of their annual income, or 10% of their net worth per year, whichever is greater.
There are no investment restrictions for accredited investors.
The stipulations and crowdfunded option were created through a provision in the Jumpstart Our Business Startups Act, which was signed into law in 2012 by former President Barack Obama to allow crowdfunded companies to issue securities.
A central goal of the JOBS Act was expanding access to capital for entrepreneurs and emerging companies. Under Regulation A+ of Title IV—adopted by the Securities and Exchange Commission in 2015—private, growth-stage companies can raise up to $50 million from unaccredited investors, essentially the general public.
Image Protect was established in 1997 to protect international copyrights for artists, technologists and others through advanced software discovery, tracking and recovery.
The company said it’s signed more than 15 media partnerships this year, and more than 300,000 artists utilize its subscription service.
“Because of this tremendous growth period, we’ve had to continuously invest back into the organization,” said co-founder Matthew Goldman, who heads global strategy and partnerships.
He was approached by two early investors who helped launch minivest.com. Image Protect’s management team liked the idea, especially since they didn’t have to “give up the farm.”
“We were presented with the platform as an opportunity to raise additional funds, which will ensure we have enough capital to maintain our strong growth trajectory for the coming months,” Goldman said.
Image Protect, which trades as IMTL on the Over-the-Counter exchange, has lost about $1.2 million in the past three years. It posted revenue of $285,000 last year, down from about $460,000 in 2015.
The company had a market cap of $2.1 million as of press time.
Two OC companies recently went public through the Regulation A funding provision.
ADOMANI, which moved its headquarters from Newport Beach to Corona in early July, became the first equity crowdfunded company to list on the NASDAQ after selling more than 2.5 million shares at $5 per share through flashfunders.com. The company makes electric drivetrains, builds them for original equipment makers, converts gas fleets into electric, and operates a distribution outfit.
Irvine-based ShiftPixy Inc. went public in late June, raising $12 million on an offering of 2 million shares.
It provides part-time employees on short notice to restaurants and other clients.
Amazon Dreamin’
For those trying to handicap OC’s chances of landing Amazon.com’s coveted second headquarters, here’s a number to throw in the equation: 238.
That’s how many proposals the Seattle-based retail giant has attracted from 54 states, provinces, districts and territories in the U.S., Canada and Mexico.
A decision on Amazon HQ2 isn’t scheduled until next year, but that hasn’t stopped pundits, politicos and business experts from weighing in on one of the biggest stories playing out in the tech and public sectors.
And with good reason, since the world’s largest retailer plans to invest more than $5 billion in the operation and create some 50,000 jobs.
The city of Irvine’s pitch includes an offer by Newport Beach-based Irvine Co. to fully finance the development of an 8-million-square-foot project, which would be largely built on its Spectrum-area land. Amazon employs an estimated 1,200 in the area in various gaming, app and retail operations.
A joint bid under the banner of Orange County Silicon Cities has also been placed and endorsed by the cities of Santa Ana, Garden Grove and Orange. Under plans shown to the Business Journal, the project could offer more than 10 million square feet of office, retail, hospitality and other space designed to meet Amazon’s needs.
Amazon recorded sales of nearly $136 billion last year, almost $44 million in the third quarter of this year—its best quarter ever—and has a market value of about $532 billion.
