California Business Startup Aims To Fund Solar Power Investments
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Friday, January 25, 2013.
Entrepreneurs are a creative force within society just like artists and musicians. Many entrepreneurs create opportunities and business models which did not previously exist. Some entrepreneurial projects are also designed to benefit the rest of society. One California company seeks to do this by providing an easy platform for those concerned with the environment to invest in development of solar energy. The business startup, known as Mosaic, is an online platform which provides opportunities for everyday people to invest in solar power projects while earning a return on investment.
People are allowed to invest as little as $25 on specified solar power projects, which allows even those with limited financial resources to pitch in to help make solar energy more accessible and utilized. This is a fundamental shift from the usual methods of procuring funding for energy. Traditionally, funding for energy projects came from big banks and larger financial institutions. With Mosaic's new online platform, individual everyday people can earn a 4.5 percent return on their monetary investment.
The startup company began with the business name Solar Mosaic when it initially began as a way for individuals to purchase solar tiles for community projects, which usually face challenges in securing funding. The company moved to the next step in its business plans when it changed its name to Mosaic and began capitalizing on the recent crowdfunding trend. This new way of procuring funding became more significant after Congress passed the JOBS Act to enable unaccredited investors to contribute to funds of startup businesses.
However, the U.S. Securities and Exchange Commission has been having trouble creating regulations for this type of investment funding. This prompted Mosaic to begin offering investment opportunities in individual states, such as California, that allow unaccredited investors to invest in the business startup. Mosaic's case is an example of how other entrepreneurs may be able to turn a creative and original idea into a profitable business through proper business planning.
Source: Forbes, "Startup Launches Online Platform To Let Individuals Invest In Solar Projects," Todd Woody, Jan. 7, 2013