- 1617 Park Place Ave., Suite 110N
- FT. Worth, TX 76110
(844) 673 - 8876
The Harvest Returns platform brings together high net worth individuals (accredited investors) with experienced agriculture investors and producers to raise capital for agricultural - farmland, ranchland, and timberland - via the crowd-funding process. Simply put, crowdfunding allows a business venture to raise capital rapidly by collecting monetary contributions from a large number of investors. The JOBS Act of 2012 eased securities regulations to legalize equity crowdfunding and allows us to list these deals to qualified investors.
Individuals or institutions seeking capital, or “sponsors,” will provide information on deal particulars, their background and experience in the specific agricultural product, and marketing materials for prospective investors. Equity investments will be formed into a Limited Liability Corporation or other entity and offered on the platform via a legally-compliant private placement memorandum. Deals that meet Harvest Returns due diligence criteria will be listed on the site and open to accredited investors.
Sponsors will be compensated for their effort in putting together the deal in the form of a sponsor fee, generally around 2-3% of the deal value along with sharing a prearranged split of the profits with the other investors. In some deals, the sponsor may earn annual asset fees for managing the investment. It is expected that sponsors of equity deals will have a certain percentage of “skin in the game” to demonstrate to prospective investors that they are serious about ongoing stewardship of the projects. As each deal’s products are harvested and sold, the sponsor will provide a distribution to Harvest Returns, who will then distribute returns to all investors of the particular deal in proportion to their investment. Harvest Returns will also pass along the sponsor’s operating updates via the website on how the deal is progressing, and any tax documents as required to investors. This process removes the pain associated with distributions and accounting with multiple investors from the sponsor and allows them to focus on operating the agriculture to maximize returns from the investment.