Flont, the jewelry rental service that’s raised $2.5 million in investor funding so far, has launched a crowdfunding public offering through the StartEngine platform.
The online public offering (OPO), a new alternative to IPOs, offers a chance to buy Flont’s preferred stock (stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends) at a $16 million pre-money valuation. Which means that when investors get involved, they’re betting the company’s future value will exceed $16.1 million.
The brand is also conducting a concurrent offering for accredited investors who invest more than $50,000.
Perks for investors in the OPO of $640 and up include free memberships to the site that range from one to three months.
Flont’s current investors include the former CEO of Revlon, the CMO of Coach, the CMO of Google Asia, the CEO of Onward Luxury Group, the former CMO of Neiman Marcus, the former president of Coca-Cola, the CEO of Luxury Institute, and Carmen Busquets, the original investor in Net-a-Porter, Moda Operandi, Lyst, Far Fetch, and Glamsquad.
“I was destined to launch Flont,” writes company founder Cormac Kinney, on the OPO’s cover page. “I’m a software entrepreneur who became an unlikely brand president at Richemont (Cartier, Piaget, Montblanc, Van Cleef & Arpels). My wife, Mimi So, is an influential jewelry designer, with collectors around the world. We witnessed firsthand that fine jewelry ($800 and up) does not sell online—because you need to try it!”
Flont, he adds, “is at the inflection point to begin major growth. My dream is for our clients and supporters to join us as investors. I hope you will contribute to, and profit from, our growth.”
OPOs, a growing trend for small and start-up businesses, are less complicated and expensive for companies than IPOs, because they dispense of the need for large investment banks and don’t require large legal fees to complete.
(Photo courtesy of Flont)
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