Q&A with the CEO
All About Our Company Model and Oil and Gas Deals
How do you source and vet your oil and gas deals?
First, we work with well-known exploration teams who provide seismic, engineering, and deal terms. We review each project with an independent reservoir engineer. Then, the project team evaluates the seismic, location and deal terms. If it makes sense to move forward, our in-house reservoir engineer then runs the economics to see how the financials work and if the deal terms are economically favorable; our COO, who is a landman by trade, reviews the contracts; and our co-founders, CSO, and CIO who are attorneys, review the documents, draft the disclosure memorandums, and ensure accuracy in the other offering materials.
Please summarize your business and business model.
EnergyFunders is a financial technology platform for equity and debt-based funding and investments into energy production, operations and technology projects and companies. We have thousands of users and add more daily. We operate a platform for accredited investors only and a portal open to all investors – a Registered Funding Portal that is a member of FINRA (Financial Industry Regulatory Authority, Inc.).
For our upstream oil and gas drilling projects, we earn a carried interest, aligning our interests with investors. We believe that no one in our industry is so willing to place the investor first. This has led to years-long loyalty amongst our user base.
We educate investors on oil and gas and energy investments on our platform. This is one of our core missions.
We have mostly built our technology in house, and we have built a proprietary process to make and allow for investments into oil and gas wells and Regulation CF fundraises. Consequently, we own all our IP, including the front end and back end of our website.
Recently, we released our second-generation platform in which all transactions are also recorded on a permission-able Ethereum-based blockchain for security and immutability.
Demand for oil and gas and energy, in general, is expected to increase dramatically until 2050 as developing countries’ populations enter the middle class. We believe we are poised to be on the vanguard of this macro trend for years to come.
Describe your market opportunity and dynamics?
The energy sector has a high barrier to entry due to the complex nature and skills necessary to put a project together. Also, the projects can be unpredictable, so educating investors on making smaller investments over more projects is important and challenging.
Who do you view as your closest competitor and what key factors differentiate yourselves?
Promotion-based oil and gas websites constitute our closest competition in terms of potential oil and gas offerings. However, we are different because we built our technology in house and we are a fintech platform for all parts of the energy sector. We prioritize customer service and have great rapport with our investors. Our #1 core value is “investors first.” Finally, these competitors have much less traction as they either little to no history of successfully crowdfunding projects and/or few to no successful projects they can claim.