Netcapital is an online platform that connects interested investors with startups positioned to do big things.
On Thanksgiving of this year, Netcapital made a stunning announcement: MAGFAST, the company out to change charging for good with a set of elegant, interlocking wireless charging devices, raised over $1 million – $1,055,250 to be exact, the maximum amount possible with this offering – in a matter of hours. This marks another milestone for MAGFAST, which has completed a number of fundraising rounds in record time.
Using these funds, MAGFAST will scale up its growth, producing best-in-class chargers and power banks built to last for years to come.
How It Happened
At 4:00 p.m. Eastern on Thanksgiving, Netcapital opened up the opportunity for investors to make a pre-IPO securities investment in MAGFAST.
This is something that has only recently become possible as a result of the JOBS Act. The SEC has allowed startups, as well as other small, private companies, to offer a small amount of equity to public investors – something that had not been possible for nearly a century.
In the words of Seymour Segnit, MAGFAST founder and CEO, it’s a “baby IPO” that has many people excited. The company has a massive number of pre-order customers looking forward to receiving these extraordinary products in the very near future, and many of them have now had an opportunity to be active participants in MAGFAST’s story moving forward.
Though everyone had the opportunity to purchase equity in MAGFAST, these pre-order customers acquired shares at an average investment of $1,100 – considerably higher than the average investment of about $500, which is what most people spend when purchasing equity using Netcapital.
MAGFAST’s offering differentiates itself in many ways. It allows consumers to do away with unsightly chargers and messy wires, ensure that they will never be without power in a tricky situation, and even jump-start a car in the event of a dead battery. The MAGFAST Family of chargers provides users with devices to elegantly add charging to wall outlets without plugging in additional chargers, portables for commuters and their vehicles, and many more options.
The company is also committed to cleaning up the environment, planting trees in a partnership with Trees for the Future for every unit sold. This has so far translated into more than 250,000 trees planted – over a quarter of a million – and helps offset the effects of manufacturing chargers, as well as the power consumed keeping their batteries fueled.
MAGFAST’s products are also future proof, using a modular cable design to accommodate virtually any portable device from the last decade – as well as anything that will be released in the decade to come.
Netcapital is making it possible for anyone to invest in startups for far less money than a venture capitalist or equity firm contributes, creating opportunities for people to directly support businesses that they believe have bright futures.
In Segnit’s words, “If you have an ordinary company, you’ll want to go with one of Netcapital’s competitors; they’ve got the cookie-cutter approach down pat. But if you are growing something exceptional, call Jason’s team at Netcapital. They’re extraordinary.”
Netcapital CEO Jason Frishman celebrated MAGFAST’s fundraising as an impressive achievement and stated that the company was thrilled to help MAGFAST continue to grow through its highly effective digital fundraising.