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Tag Archives: Wilmington

Delaware to be Home to Nation’s First Crowdfunded “Venture” Exchange

31 Jul

DBOT seeks to create the nation’s first ever “venture” exchange, a crowdfunding exchange that will allow startups and small companies access to capital

By Robert Hoskins

Wilmington, DelawareNew Castle County Council voted to unanimously approve the Delaware Board of Trade (DBOT) resolution, allowing for the issuance of $15 million in revenue bonds to fund the construction of a new stock exchange in the City of Wilmington. The bonds will be the obligation of DBOT and will not place the County’s credit, or taxpayer money, at risk. The Resolution, proposed by County Executive Tom Gordon, was introduced by Council President Christopher Bullockand President Pro Tem Penrose Hollins, the primary sponsors on County Council.

Delaware to be Home to Nation's First Crowdfunded "Venture" Exchange

Delaware to be Home to Nation’s First Crowdfunded “Venture” Exchange

“This project may be the biggest thing to happen to Delaware since the Banking Act. Our State will not only be the best choice to incorporate a new business, but also to raise the money necessary to fund it,” said County Executive Gordon.

In May, senior County Officials, including County Executive Gordon, Chief Administrative Officer David Grimaldi, and Deputy CAO Samuel Guy, met with representatives of the Delaware Board of Trade to discuss their proposal, which calls for a new stock exchange aimed, in part, at modernizing the over-the-counter market (OTC) in the United States.

DBOT also seeks to create the Nation’s first ever “venture” exchange, a crowdfunding exchange that will allow startups and small companies access to capital.

New Castle County’s Comprehensive Economic Development Plan identified the State’s relative lack of access to venture capital funding as one of its biggest constraints to economic growth. Startups are not candidates for traditional bank financing and rely on venture capital funding, which has been relatively non-existent in Delaware.

Chief Administrative Officer David Grimaldi, who put the DBOT deal together, noted that “DBOT has the potential of offering new businesses a more attractive alternative to traditional venture capital funding. Overnight, one of our major growth constraints can become our core competitive advantage. This is big.”

“This is a game changer for the state,” said Council President Bullock. “It will be a direct job creator and provide a shot in the arm to both the state and the city of Wilmington.”

Council President Pro Tem Hollins, who sponsored the resolution, noted the economic impact of the nearby Philadelphia Stock Exchange as an indication of the project’s potential for Wilmington. “The Philadelphia Stock Exchange contributed nearly half a billion dollars per year in annual capex spending and over $100 million in annual salaries. If that were replicated in Wilmington, it would be transformational.”

Deputy CAO Samuel Guy, who work closely with the County Executive and CAO in constructing the deal said, “The Delaware Board of Trade will be operated by globally recognized leaders in the financial services industry. The new exchange will position Delaware as a first mover to directly benefit from the incentives created under the JOBS Act and corresponding SEC Regulation A+, which was recently finalized. This may lead to a rebirth of our economy.”

Members and affiliates of The Delaware Board of Trade include former NYSE CEO Richard Grasso, former UBS Financial Services CEOJoseph Grano, former Philadelphia Stock Exchange CEO John Wallace, former Cincinnati Stock Exchange CEO Richard “Nick” Niehoff, and former US Postal Service Governor and top aide to Vice President Joe Biden, Dennis Toner.

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Freaker’s Founder Returns to Kickstarter to Launch $250k Crowdfunding Campaign to Fund New Line of Freaker Socks

5 Jan

When millions of people saw Freaker USA founder Zach Crain on ABC’s Shark Tank, the first thing they noticed were his zany antics, his wild beard, and his rambunctious yet business-savvy charm. What they may have missed is his commitment to keeping jobs in the US!

By Robert Hoskins

Wilmington, North Carolina – One of the wildest contestants ever on ABC’s Shark Tank, Zach Crain, founder of Freaker USA is returning to Kickstarter, where his 2011 video was hailed as “the holy grail of Kickstarter videos” by the crowdfunding site itself. Starting New Year’s Day, Freaker USA aims to raise $250,000 on Kickstarter in 40 days to begin production on Freaker Feet, the company’s high-quality line of socks that are 100% designed, sourced, and manufactured in the USA. The 6-minute video pitch is the company’s most outrageously entertaining video production yet.

Freaker Feet, the company’s high-quality line of socks that are 100% designed, sourced, and manufactured in the USA

Freaker Feet, the company’s high-quality line of socks that are 100% designed, sourced, and manufactured in the USA

Freaker USA’s quirky line of ultra-stretchy beverage insulators, called Freakers and also made in the USA, can now be found everywhere from independent gift shops and boutiques to major national retailers. The company is expanding into socks, an import-dominated industry, in order to further support manufacturing in America.

Freaker Feet’s Kickstarter page shows the anatomy of their domestically produced socks, with the names and locations of the American cotton spinners, mills, dyers, and packagers that will create them—and who will ultimately reap economic benefit from the campaign.

“Let’s team up! Let’s go after the sock industry that’s 99% overseas,” says Freaker USA founder Zach Crain. “Socks don’t need to have a 20,000 mile footprint. Let’s bring these jobs home.”

Freaker Feet will have 127 sock designs in total, including officially licensed collegiate, boutique styles, a design for each of the 50 States, and one for almost every football fan.

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