12 Mar Startup Profile: Crudefunders
“Your last name no longer has to be Hunt or Perot to invest in oil,” says Crudefunders CEO David Taylor. “Now, anyone with $1,000 to invest can buy equity in oil and gas.”
Crudefunders is an equity crowdfunding platform that allows direct investment in oil well drilling projects. Small, unaccredited investors can invest up to $5,000 into multiple Crudefunders’ projects listed on the general site to gain equity in those companies.
It’s ironic that a company set to disrupt oil investing in Texas began in a dog park! While watching their dogs frolic, David Taylor and Allan Fine built a relationship over many months.
“Eventually, we figured out we liked each other and decided we wanted to do business together,” laughs David. “A Harvard attorney friend told me to RUN away. But, that made me hungrier. After extensive research, Allan and I decided this thing had legs. That same attorney has since decided to put money into the project after seeing how much we have accomplished!”
Thus, Crudefunders’ was born. David and Allan built a top-notch team of seasoned industry experts who bring more than 100 years of combined experience in oil and gas. Some are second and third generation Texas oil men.
What makes these leaders different is that they are all strategic investors who have put their own money at stake in the company’s success. They only win if their investors win.
The company is built on a foundation of transparency. Crudefunders.com offers investors reports and even videos providing information typically restricted to industry experts. Investors have the tools and data they need to make informed decisions.
Unlike Big Oil, Crudefunders takes a lifestyle approach to oil investing. “The Rig,” a mobile investment center is touring Texas, bringing investors onboard and creating a social community. Investors can even get a referral bonus for each investor they bring in.
“Crudefunders are like rock stars in west Texas,” says David. “Guys can finally own a piece of a well where they work day after day.”
Crudefunders investors must be residents of Texas and can invest no more than $5000 per project. If the well is successful, investors can expect a quick return, often in the first year, and years of return-on-investment. The opportunity is made sweeter because the initial investment can be tax-deductible as an energy investment.
Crudefunders launched in anticipation of Texas passing the Intrastate Crowdfunding Exemption in November 2014, following the Federal government’s JOBS Act passed in 2012. They are the first equity based oil and gas crowdfunding company to allow non-accredited investors to be approved for a portal in the state of Texas, and one of only two approved companies statewide.