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Startup OpenGrants Announces Unique Investment Offering

In the process of expanding its base of users and investors, the company is asking for support through CAFEs — continuous agreements for future equity — at a minimum $500 one-year buy-in at $10 apiece.

by / January 4, 2021

The grant search engine OpenGrants, which helps private and public agencies find and distribute funding, has launched a new fundraising effort in the form of a continuous securities offering, according to a blog post today on the company’s website.

Dubbed a CAFE, short for continuous agreement for future equity, the program asks interested parties — investors, entrepreneurs, consultants, users of OpenGrants — for a minimum total investment of $500, or 50 CAFEs at $10 apiece, which are locked in for a year but tradeable on the secondary market. After a year has passed, and when the investor wants to pull out, or the company is acquired or has an initial public offering, the CAFEs convert to shares at a minimum of their initial value.

According to OpenGrants’ blog, the CAFE allows for continuous fundraising instead of a one-time window, it allows anyone to invest in the company regardless of accreditation, and it’s antidilutive, meaning it maintains or increases the value of the initial investment.

OpenGrants was founded in 2018 and launched its free search engine in early 2020, aiming to help private and public agencies both find and disburse grants. The company’s blog lists a total valuation of $5 million and says the company is profitable.

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