SHREVEPORT, LA (KSLA) - After launching an equity based crowd-funding effort, Elio Motors might be one step closer to building their 3-wheeled vehicle in the old General Motors plant in West Shreveport.
The start-up company announced Tuesday, after one month of crowd-funding on "Start Engine.com," they've reached their goal of raising $25 million, with more than 6,000 investors expressing interest.
However, Elio Motors can't get their hands on that money just yet because the money is only pledged and non-binding right now. Elio Motors can't ask to collect the money until the U.S. Securities and Exchange Commission (SEC) approves of paperwork to do so.
If the SEC gives the green light, Elio Motors will contact those who pledged money and see if they are still interested.
But CEO Paul Elio is confident they will get all $25 million.
"I think we will get approximately what the counter is showing," he said. "I think there is going to be two dynamics that happen. I think there are going to be people who said they were going to do it and we are unable to contact them, like a typo in their email address or they change their mind, there is definitely going to be some fall out. But because it is so successful, I think there will be people who say hey I want to put $1,000 in and when we contact them and they want to put $2,000 in."
According to a press release sent by StartEngine, unlike traditional crowd-funding, equity crowd-funding on StartEngine's alternative investing platform makes it possible for both accredited and non-accredited investors to get in on the ground floor and support start-ups in a whole new way.
StartEngine CEO Ronald Miller said he is excited equity crowd-funding is working for Elio Motors.
"I would say their results are extraordinary. The campaign only started on June 19, which is the day the SEC finally ruled, allowing companies to raise capital from non-accredited investors," said Miller.
Elio said they'll use the money potentially raised through the website to build 25 prototypes of the 3-wheeled car for testing and validation.
The company still needs to raise $225 million to be able to start production in Shreveport. However, that amount does not include the $25 million potentially raised through equity crowd-funding.