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EnergyFunders and Crudefunders: A Comparison of Two Crowdfunding Platforms

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EnergyFunders was first … and now has competitors

EnergyFunders was the world’s first oil and gas crowdfunding platform, founded in 2013. Since 2014, competitors have entered the equity crowdfunding space, including Crudefunders, Offerboard, EOilBoom, Zion Oil and Gas, and there will be others.

Crude Oil Investing Is Tough

This is a difficult business. It’s different from real estate, tech startups, stocks, bonds or any other type of investment. Oil and gas investments are capital intensive, and returns are uncertain (but can be highly lucrative).

Are we perfect? No. We have successful and unsuccessful projects. We’ve compared equity crowdfunding platforms before, and now we want to answer the question, “How do you compare with Crudefunders?”

How EnergyFunders Is Different from Crudefunders

  1. We have a track record of closing many deals (20) and raising sizable amounts of capital (over $6 million to date).
  2. We have projects projects that pay investors monthly.
  3. Our platform allows investors to diversify with smaller investments over more projects.
  4. EnergyFunders is a true financial technology. We develop all of our platform technology in house, and as of 2018 our platform is integrated with blockchain technology.
  5. EnergyFunders is the #37 FINRA registered regulation crowdfunding portal in the U.S.
  6. We don’t charge investors an upfront cash fee. Instead we defer revenue until the well produces. This is our way of aligning ourselves with investors. If the well doesn’t pay out, then everyone loses.

What Other Crowdfunding Platforms Do Differently

  1. They act as brokers, charging upwards of 15% placement fees regardless of well success.
  2. Crowdfunding platforms lack communication based on feedback and ratings.
  3. Many have inconsistency in their management, including C-level turnover.
  4. Often, crowdfunding platforms lack transaction volume – how many funds have they closed and put on production?

What Does This Mean for Crude Oil Investors?

Our goal is to disrupt a traditionally opaque industry with unprecedented levels of transparency in deal structure to benefit investors.

We’re cutting out the middlemen that usually get paid regardless of whether a project succeeds. Keeping the deal transparent and aligning everyone’s incentives is the best way to protect investors in an industry that can be very lucrative at the micro-economic level.

We think this is the best model, and we’re seeing results.

Our Crude Oil Investing Model

What has kept us relevant in the marketplace is that we’ve built the relationships and remained true to our core values.

  1. Investor first: Projects aren’t always successful, but whether good, bad or indifferent, we communicate. If you call, we pick up the phone. We provide a higher concierge level of investor interaction that no other platform has.
  2. Long-term relationships: We’re building long-term relationships with the industry’s top conventional operators, high-net-worth individuals (accredited investors), and influencers in the oil and gas industry.
  3. Honesty and transparency: We do what we say, we provide extensive amounts of data for investors to perform their own due diligence, and we filter projects.

Contact us to learn how we can help you reach your crude oil investing goals or create a free account to view current investments.