I would like to address the public raise that WorthPoint recently embarked upon that included some of you as participants. “Crowdfunding” is a new idea in America and one that lets users directly invest in companies without having to be a big investor. In brief, the structure proved difficult to close and, with the passage of time and continued growth, the company’s need for funds is no longer as present.
Like many things that are a great concept, the difficulty lies in the reality of making such a new idea happen. For any company raising funds via a Crowdfunding – WorthPoint included – it is an expensive and time consuming process. For our potential buyers, I have been told the forms are invasive, the front-end system cumbersome and the financial reading of the prospectus and risk factors terrifying, even though all are necessary parts of our legal society. All these factors made the process of selling stock time consuming and generally the work fell on me. In order to meet our minimum investment defined in the prospectus, we would have to spend more money on marketing and, more importantly, more of my time to possibly succeed – time better spent on expanding the site offerings for WorthPoint’s subscribers. Ironically due to WorthPoint’s continued growth and the length of time this has taken, we no longer have the need of the money we were seeking for our operations.
Thus, I reached the conclusion that we will cancel the raise and return the money to our prospective investors have escrowed with North Capital. I will follow up with a memo in the next couple of days on the process and time frame for returning your funds.
In order to thank all of you that put up your money into escrow, WorthPoint will follow through on its commitment to give you all of our products free for 1 year. Be sure you signed up for the free year and follow-up with WorthPoint Customer Care at firstname.lastname@example.org.
We will look to list shares of the company again in the next several years as it has always been my vision that WorthPoint belongs to the user community. We will continue that objective as a longer term goal and I am sure it will become a reality.
We were a pioneer, and as pioneers you try new things. They do not always work, but that does not stop you from continuing to try new things or even the same idea later under different circumstances.
Thank you for your support!