Farm Power: SCOR Case Study

When brothers Kevin and Daryl Maas sought to start Farm Power Northwest, they raised capital to buy equipment from accredited investors through private placements. But actually getting Farm Power running required still more capital, and they decided to look to their community. Kevin explains,

“The ideal is raising money from a broad group of community investors, that’s what community investing is all about, even though it almost never looks that way anymore . . . ”

So the brothers began to research their options on the Washington State Department of Financial Institutions (DFI) website. The Small Company Offering Registration (SCOR) fit all of their needs: the ability to raise money from non- accredited investors, to advertise, and to register themselves without the assistance of an attorney or another professional. “We did the whole thing ourselves,” Kevin explains.

He recalls the process required time and persistence, but not wasn’t impossible. They spent 3-4 months exchanging drafts of their disclosure documents with DFI, whose primary interest is making sure prospective investors are well informed about the business in which they have the opportunity to invest.

Once the offering was approved, Farm Power Northwest advertised primarily in their local newspaper, the Skagit Valley Herald. Kevin and Daryl raised $750,000 from 30 investors in just a few months. Kevin believes they were successful in large part because they were able to host prospective investors for tours of their new equipment. “A SCOR is not a great opportunity to tell what you are going to do, you have to show what you’ve accomplished. It’s easier with a track record or visible asset unless you already have a high level of trust with your investors,” he notes.

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Kevin Maas, Farm Power Northwest
Photo Credit: Mark Harrison / The Seattle Times

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