I'm ready to invest
I'm ready to invest

FAQs

I'm Ready

to Invest

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Berkeleyside DPO logo

Where do I send my investment check?

Please send your check (made out to “Berkeleyside, Inc.”) by mail to:

Berkeleyside, Inc.
2908 Pine Avenue
Berkeley, CA 94705

Why did you choose a DPO?

We believe a DPO is the best investment vehicle for a small business like ours. Here’s why:

  • We want to pay a return to you, not to a bank.
  • We believe our best investors are those who already value and support us: our community of readers.
  • We are providing an opportunity to invest locally rather than in Wall Street.
  • We want to keep money in the local economy by paying a return to California residents in the Bay Area and beyond.

Learn more about what a DPO is.

A Direct Public Offering, or DPO, is a public offering of securities by a business or nonprofit made directly to both accredited and non-accredited investors. By using a DPO, also known as investment crowdfunding, Berkeleyside ensures our pool of investors is from the 100%, not the 1%.

Ben & Jerry’s raised investment through a DPO, as did the Green Bay Packers, the only publicly owned franchise in the NFL. More locally, Oakland’s People’s Community Market is building its organization through DPOs.

What is so innovative about a DPO?

A DPO is the only way a company like ours can publicly advertise an investment to a large pool of potential investors, both accredited and unaccredited. It allows us to reach the wider community, rather than just the 1%. This allows us to leverage the power of crowdfunding while offering an investment return.

How will I get my money back?

The shares earn 3% annual dividends, which will either be paid in cash at the end of year or accrue until paid in a later year. If the company is sold or liquidated, investors will have a preferential right to receive their investment amount plus accrued dividends. The company can choose to repurchase the shares, at the investment amount plus accrued dividends, at any time. Shares are transferable, subject to a number of restrictions described in the offering materials.

Is it risky?

There is risk in every investment and this is no different, as Berkeleyside is offeringpreferred stock that would be junior to any creditors in a bankruptcy. This risk is offset by the fact that, with 3% annual dividends, we are paying 3.0x the return of the best savings account in the country, and 2.5x the rate of 7-year US Treasury bonds. An investment in Berkeleyside diversifies your portfolio, builds local economic resilience, strengthens your sense of place in your community, and supports independent local news. All investments are about risk, but with most investments you are placing your trust in a faceless organization. With Berkeleyside, you can stop by and talk to us, or run into us on the street, anytime. Which would you prefer?

Wouldn’t it be faster to just go for a bank loan?

It might be, but bank loans can be difficult to get for businesses with few physical assets. We also feel strongly that the risk-reward structure is heavily skewed in the bank’s direction. We want to put our money where our mouth is and be independent and local in our investment offering.

What if you don’t reach $800,000? Will I still earn dividends?

Absolutely. It is not an all-or-nothing situation. Dividends start accruing as soon as your funds are deposited.

Can someone invest through a trust or an IRA?

Yes, trusts and self-directed IRAs are great vehicles for this investment, as long as the entity that will hold the shares is a California resident.

I have other questions. Who can I contact?

Contact Lance Knobel at invest@berkeleyside.com / Tel: 510-759 7371.

 


 

This is not an offer to sell any securities. Offers to sell are made only pursuant to authorized offering materials. The offering is limited to California residents that meet certain suitability requirements. You must verify that you a California resident in order to receive the authorized offering materials, and you must verify that you also meet the suitability requirements in order to subscribe for the securities.