A second project that I invested in through the crowdfunding portal, Small Change, has “failed”. It’s a project for a worker-owned bed and breakfast. According to the project owner, the project needed more funds than what they were able to obtain from Small Change investors and other investors. The owner found a new investor, who required that all Small Change investors be removed from the project. They announced that to us earlier this year, and said we would receive our initial investment + 3%.
The Small Change leadership didn’t think this plan was good enough, starting with disagreeing the removal of Small Change investors.
Eventually, the project owner returned our initial investment + 8%. I don’t know if the project owner had the right to cancel and return our investments, but I’m happy to have my money back + 8%.
I’m disappointed in the ultimate outcome of not being able to participate in 1476 Magazine because this is the second project I invested in via Small Change that has not succeeded. The first was for a group of three single-family houses built to a high energy efficiency standard that have not yet sold.
I have an investment in a third project (in Philadelphia) that is converting a disused industrial building into mixed-use with residential and I hope that one succeeds, but I haven’t received an update since it was funded. Update: I inquired and the project owner sent me the update they sent in the last couple of months, which I seemed to have missed.
I believe in the Small Change mission, and crowdfunding broadly, but once I made my third investment I paused so that I could wait to see what happens with all of the projects.