Some members of the public received an email this weekend from Northern Pacific Airways alerting them to a newly-launched crowdfunding campaign. The startup airline is seeking $5 million as part of this “Community Round,” but is soliciting investments of “as little as $100” a worrying sign of money problems? Or is it merely a way to build excitement, enthusiasm, and personal attachment to a budding airline?
On May 27th, certain individuals received an email from Northern Pacific notifying them of a crowdfunding campaign. The email begins by saying the following:
As a valued supporter of Northern Pacific, we wanted you to be among the first to know that we are now raising a Community Round on Wefunder in support of the launch of our international airline! This means we’re letting our biggest supporters – you, our soon to be customers – become investors in the company.
The email then says that the reader can “invest as little as $100” by visiting wefunder.com/northernpacificairways.
Explaining its Community Round, the airline says this initiative is a way to build a network of people who share in its mission and values. “The great thing about Wefunder is that it allows anyone – whether or not they’re an accredited investor – to become an angel investor in our company,” the email adds.
Finally, the airline notes that US federal law limits a Community Round to only $5M, “which is why we’re telling our loyal customers about it first before going out more broadly to the rest of Alaska.” The airline then posted about its investment opportunity on its social media channels about an hour later.
The airline has already taken possession of one aircraft. Photo: Northern Pacific
What do investors get in return?
Since crowdfunding isn’t a traditional investment in the sense that a share of the company is being purchased, rewards are promised based on the level of investment. Here is what…
