About Rural Growth
Rural Growth is the new online marketplace for funding and investing in rural America through private placements. In this process, a business seeking funds to further its growth connects with potential investors, who then choose to collectively pool resources or capital in order to fund the business.
According to the Small Business Committee of the United States House of Representatives, “small businesses play an especially vital role in rural America, creating roughly two-thirds of jobs.” However, entrepreneurs in these communities face unique challenges. Business owners in rural areas particularly struggle with comparatively “fewer opportunities to access capital.”
Fortunately, Rural Growth is helping to combat this issue. Online private placement on platforms like Rural Growth were made possible by legislation passed by the United States Congress in April 2012: the Jumpstart Our Businesses (JOBS) Act, which reformed decades-old legislation that prevented ordinary investors from investing in private companies. The JOBS Act has particularly vital relevance to the types of companies seeking a place on the Rural Growth Platform. In addition to enabling investors to capitalize on such businesses’ financial growth, the JOBS Act also allows small businesses to both issue securities and publicly advertise them, which was not permitted prior to this legislation. Rural Growth’s role in this is to securely process transactions between investors and fundraising businesses.
The businesses seeking investors on the Rural Growth platform vary widely. They include early stage startups as well as more established companies, involved in industries including real estate, agriculture, equipment manufacture and distribution, hospitality, and more. They come into contact with Rural Growth through Rural Growth’s network and partners. Before obtaining a fundraising space on the platform, these companies must fit eligibility guidelines by demonstrating sound business plans (including strong teams and networks, compelling addressable markets, and high traction or growth) and fulfilling regulatory requirements established through the Securities Exchange Commission (SEC). Rural Growth’s selection process is rigorous enough that only the best of the best companies that express interest in raising funds through the Rural Growth platform are actually selected for inclusion.
In order to invest in offerings on the Rural Growth platform by purchasing private securities, interested parties must register as “accredited investors” in order to signify that they are entities capable of sustaining the amount of risk associated with this type of investments. Free online self-accreditation can be completed quickly and easily as part of signing up for a Rural Growth account.
From there, registered investors are able to browse offerings on the platform and to review the terms of each. Once an offering is selected, the investment process is a seamless experience, completed entirely online on our website and through email. After the necessary legal steps are completed, contributions by each investor are transferred to the escrow account created by Rural Growth to hold the funds intended for a given company. Neither Rural Growth, nor its affiliated broker-dealer, North Capital Private Securities, ever receives or holds any investor funds during the process.
The money is held securely in this account, waiting until the company meets its minimum fundraising goals. In the event that a company is unsuccessful, the escrow agent returns all investors’ funds, but otherwise, once the target has been met, the money is transferred to the company and the investors receive their securities. The investment process on Rural Growth is simple and secure and allows ordinary investors to assist rural American businesses in achieving their development goals, thereby strengthening the American economy.