Four years ago, there were two entrepreneurs who wanted to build an electric car, Mario Dubuc and Mike Kakogiannakis. They soon found themselves co-founders of Dubuc Motors, a company located in Quebec City. They met by chance in 2004, and with their common interest over cars, they started designing the “Tomahawk”. An electric car, the Tomahawk possesses a speed greater than 250 km/h, and can run from 0 to 60 mph in just three seconds. Kakogiannakis has previous experience in flying planes, and that’s where Dubuc Motors got the inspiration for the bonded aluminium chassis.
Finding the providers for the car parts locally was easy, but the major ordeal was getting the support from the Canadian government and investors to bring Tomahawk to the consumers. According to Dubuc, who is also the CEO of Dubuc Motors, the company looked for financing around Canada for two years. That led them to look for funding elsewhere, and Dubuc Motors became the very first electric vehicle firm that started a car enterprise using the brand new equity crowdfunding policy of the United States.
The company is raising funds at StartEngine, an online crowdfunding platform established months after the changes to Regulation A+ of the Jumpstart Our Business Startups (JOBS) Act has been approved by the Securities and Exchange Commission.
The beauty of StartEngine is that you can start a campaign and search for signs of interest. After testing the waters, you can file the necessary form and seek review from the Securities and Exchange Commission (SEC). When SEC review has been completed, and there is positive signs of interest, you can begin an official offering to gather the funds you need.
StartEngine bridges the gap between investors and private companies, providing the former with the connections they need to fund the latter. According to Dubuc’s COO Kakogiannakis, their goal is to be able to put up $15 million for a minority stake, approximately 10%. However, the final value would entirely depend on the investors’ reaction to their crusade.
Kakogiannakis deems that Tesla Motors Incorporated provided the industry’s integrity. Nonetheless, the fact that Tesla Motors almost went bankrupt in 2013 made it challenging for Dubuc Motors to attract the venture capital firms to invest. According to Kakogiannakis, he was concerned that the company was moving in the wrong direction in terms of how they were looking for financial support, but eventually, he found out that even Tesla, in their early stages, experienced the same challenges in getting the capital required to get their company up and running.
Images credit to DUBCMOTORS.COM