Solar panel project crowdfunding

Thanks to Jay Parkhill for a heads up this morning about Solar Mosaic, a startup which appears to have recently opened a handful of already successfully completed revenue loan or note financing offerings to fund discrete solar panel installation projects.

It looks like both the general tech press and financial press are following the story, so let's not get distracted retelling the company's narrative here.

Solar Mosaic PPM coverInstead, let's try to figure out what Mosaic is doing to take advantage of the shifting securities exemption landscape. This company may be an early model of how a crowdfunding platform might bring together accredited and nonaccredited investors.

At the moment, I don't know exactly how they are pulling it off. Update 1:34 PM Pacific: Looks like Solar Mosaic may be relying of Rule 504, which I think is the main exemption Bolstr uses. But clearly the model merits the community's attention.

First thing I noticed is that you can pull a prospectus for a given project from the open web. No password required.

This suggests to me that the platform or the issuer (not yet sure those two are not one in the same in this case) is engaged in general solicitation. If so, that fact will have a bearing on what exemption they must be claiming. (Due in part to the backlash against the SEC's proposed rules to implement lifting of the ban on general solicitation and general advertising, one cannot yet, at least not technically, engage in general solicitation and rely on Rule 506.)

Let's share what we find or figure out about this venture. It looks innovative.

blog comments powered by Disqus