Sacramento, California-based Safe Soil collects food waste from supermarkets at no charge (a service usually paid for) and using enzymes, turns the waste into soil amendments within three hours – a process that traditionally takes six months.
The company is currently in the process of raising $7.1 million to fund the building of a new 80,000 square foot plant that will have 32 times the production capacity of its pilot plant build in West Sacramento in 2012.
To raise $6 million of the needed funds, Safe Soil has turned to a new alternative source for fundraising – San Francisco-based AgFunder. AgFunder’s business model is similar to other non-ag crowdfunding models such as Kickstarter, however contributors through AgFunder receive a stake of ownership in the business in which they invest.
The JOBS Act, passed in 2012 has eliminated regulatory restrictions making this model of fundraising possible, however the Securities and Exchange Commission requires that all participating investor be accredited, meaning they have $1 million in addition to the value of their home, or an annual income in excess of $200,000.
Founded two years ago, AgFunder has financed eight companies to date with five being located in California.
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