AutoCamp, a company known for its luxury outdoor accommodations, has launched a Regulation Crowdfunding campaign with the U.S. Securities and Exchange Commission (SEC). The funding goal is set at $1.23 million, aimed at expanding its portfolio which features Airstream trailers, cabins, and glamping tents located near national parks and other outdoor recreation areas throughout the United States.
This crowdfunding effort offers Class B Common Stock priced at $9.10 per share and values the Delaware-based firm at approximately $200 million. This marks a notable change in AutoCamp's strategy for capital raising; previously, the company primarily relied on institutional investors. In 2019, they secured a $115 million investment for real estate acquisitions and property development.
By diversifying its funding sources to include retail investors, AutoCamp is enabling individual contributors to take part in its growth plans. The SEC regulations allow for companies to raise up to $5 million each year through such crowdfunding efforts, providing a viable alternative to conventional private equity and commercial lending.
Currently, AutoCamp operates nine locations across the U.S. with a total of over 700 accommodations.
With more than $150 million in lifetime property revenue and over a million guests welcomed since inception, the company is poised for continued growth. AutoCamp's strategic partnerships, including its exclusive development partnership with Airstream and cooperation with Hilton, further enhance its offerings and appeal to a wider audience.
The launch of this campaign aligns with the peak summer travel season, a time when interest in nature-based travel and accommodations with modern amenities is at its highest. As AutoCamp continues to evolve its business model, the move toward an OpCo/PropCo structure indicates a desire to enhance management efficiency and capitalize on partnerships while minimizing capital expenditures.
The outcomes of this crowdfunding initiative may set a precedent for other outdoor hospitality businesses considering similar financing strategies.
Source: moderncampground.com