Due to the fact that 3rd Ward has shut down operations, we have discontinued this offering.
At Fundrise our goal is to democratize access to local investment opportunities that otherwise would not be available.
If an opportunity for investment that sufficiently protects investors emerges, we will reach back out to those who have indicated an interest.
The Fundrise Team
Our mission is to give local people the ability to invest in and build their city. We believe there may be other kinds of community assets, beyond just real estate, like local businesses that could benefit from our direct investment approach. We feel an obligation to see if there is demand for this type of investment which otherwise would not be accessible.
The Fundrise Team
3rd Ward opened in 2006 as a home for Brooklyn’s burgeoning creative community of makers, designers, tinkerers, and thinkers. We offer professional production shops that anyone can use, hundreds of classes each month on how to design, make, and market just about anything, co-working space, a rich network of brilliant freaks, and a calendar of events to keep everyone intrigued.
Little did we know back then in 2006 that we were spearheading a now global movement that empowers individuals and small business through shared resources, on demand knowledge and the showcasing of talent. Over the years our passion for what we do has driven 3rd Ward to refine a unique business model that has been lovingly copied the world over. That movement also empowered us to achieve a number of successes this past year, including the new Philadelphia location, a lease for a third Culinary-focused location, and partnering to open a restaurant, Fitzcarraldo.
We believe in learning by doing. We believe in the power of creativity to solve problems. We believe that good ideas shouldn‘t die for lack of resources. We believe that higher education today is too expensive. We believe knowledge is best shared from the bottom up, not the top down. We believe new ideas are best explored in old buildings. We believe that our business model can be scalable, and replicable, while making the world a better more interesting place.
Our business model is simple enough and breaks down into two divisions that complement each other.
1 – A rental business for great workspace that includes a wood shop, a metal shop, a photography studio, a jewelry studio, a textiles studio, a digital media lab and a shared office. There are different membership tiers and soon pay by hour options that allow our customers to take advantage of these spaces in ways that work best for them.
2 – An education business that is focused on the skills today’s dynamic freelance and non-freelance workforce needs to create a market ready product or a creative project, with a little bit of DIY thrown in for good measure. Those skills break down into three basic categories which are design, production, and business. Our classes are taught by professional and creative leaders currently working in their field and we revenue share with our teachers so we are aligned as partners. It encompasses real skills for real makers and entrepreneurs, artisanal and consumer products aspirants, and software tools for creating digitally, combining traditional skills and digital advancements.
3rd Ward is seeking an immediate minimum investment of approximately $1.5 million, and we are asking our community to join us. This growth and stabilization capital is essential to our continued success. While we had strong revenues of $3.6 million in 2012, we had a downtick of revenues in 2013 and our expansion and resulting operational costs created a need for a new infusion of equity.
The current operating losses and cash deficit are primarily due to three factors:
The new infusion of capital will be used to:
Jason grew up in Atlanta where he used to build forts and take apart electronics. He attended SCAD, graduating in 2001 with a BFA. After graduation, he spent a few years in the San Francisco Bay Area assisting commercial photographers and engaging in creative endeavors. Jason relocated to New York in 2003 and started a design-build firm called The Build NYC with Jeremy Lovitt. In 2006, the same duo opened 3rd Ward with the goal of creating a community around maker culture and providing a place where anybody can make anything.
Nick has held leadership positions both within the financial services industry and within operating companies for more than 13 years. Before joining 3rd Ward in May 2013, Nick was a Structured Finance Vice President with SolarCity (SCTY) where he raised tax equity financing from financial and operating company investors. Prior to SolarCity, Nick provided interim CFO advice and fundraising services to early and mid-stage companies experiencing considerable growth.
Nick was also with the New York branch of HSH Nordbank where he led the Rail equity and lending activities ($1.0bn+ portfolio) and with the corporate finance group of GATX Capital. Nick graduated from Arizona State University and holds a J.D. from the University of San Francisco and a Masters from Thunderbird International School of Business.
Izgi has more than 14 years of experience at the Big Four professional services firms where she gained a broad understanding of operational and financial business processes, information systems and their interdependencies. Before joining 3rd Ward, she was a Senior Manager at Deloitte, providing consulting services to help her clients improve their daily operations and customer experience. Izgi started taking art classes at 3rd Ward in early 2013 and joined the 3rd Ward team in June, following her passion for innovation, maker culture, arts and education.
Felicia has over seven years of experience in marketing and operations, mostly holding multiple roles at start ups in the entertainment and technology industries. Prior to joining 3rd Ward, Felicia was a Digital Strategist at Perks Consulting, a digital brand and marketing consultancy company for consumer brands and technology startups. She has also served as the Managing Director for the New York City chapter of Girls in Tech, a global social network enterprise focused on the engagement, education and empowerment of like-minded, professional, intelligent and influential women in technology. Felicia joined 3rd Ward in 2013, overseeing the technology and business curriculum.
Jake brings 20 years of experience as a furniture designer, maker and educator to 3rd Ward. He joined the team in April 2011 to design and build the wood and metal shops. He is now the Facilities Director and Education Product Manager overseeing the woodworking and metalworking curriculum. He holds a BFA in Furniture Design from Rhode Island School of Design. He spent six years as a Senior Lecturer in the Crafts Department at The University of the Arts in Philadelphia, while building handmade collectable furniture for Michael Hurwitz.
3rd Ward has developed almost 800 classes within multiple disciplines including digital design, woodworking and metalworking, jewelry, textiles, business development, art and technology.
Classes include introductory lessons, core skills and long form intensive formats allowing students to create an education roadmap and grow their experience and skills at multiple levels.
We have thousands of square feet of workspace where thousands of our members can design, create and produce at scale their projects, freelance and commercial efforts, as well as their artistic endeavors. The space provides a cost-efficient opportunity to refine skills and increase business value while also offering individuals and small businesses a place to connect with a wide network of professionals in technology, business and creative roles.
3rd Ward Brooklyn, founded in 2006 and located in the up and coming neighborhood of Bushwick, is a sprawling 30,000 square-foot maker‘s paradise. Housed within its beautiful brick walls is a wood shop, a metal shop, a jewelry studio, a textiles studio, a coworking area, an event space and a digital lab. Conveniently positioned between three major L train stops, it is the go-to destination for creatives wanting to hone their skills through classes or use of the workspace. Co-located with the brand-new restaurant, Fitzcarraldo, it has become a one-stop shop for anyone with a creative mindset and a desire to make.
Founded in 2013, 3rd Ward Philadelphia is a shared workspace and marketplace of hundreds of classes in technology, craftsmanship, food and beverage, art and design, taught by a community of your peers. Located in what was once known as the “Workshop of the World”, 3rd Ward Philadelphia encompasses 27,000 square feet of collaborative workspace, classrooms and creative facilities in Philadelphia‘s Old Kensington neighborhood, and is comprised of three buildings - a three-story brick warehouse, an historic church, and a single-story concrete warehouse and is poised to take over the Philadelphia maker movement.
3rd Ward Culinary, funded in part by New York City Economic Development Corporation (NYCEDC) and the Brooklyn Borough President’s Office, will make its mark in the Crown Heights neighborhood of Brooklyn. Co-located with the upcoming Brooklyn Flea beer hall, 3rd Ward’s culinary space will boast 12,000 square feet of co-working space, 7 incubator kitchens, a pop-up restaurant, an event space, a retail store and eight classrooms for all things culinary.
By: North American Securities Administrators Association (NASAA)
State laws have been relaxed to make it easier for small businesses to raise start-up and growth financing from the public. Many investors view this as an opportunity to “get in on the ground floor” of emerging businesses and to “hit it big” as these small business grow into large ones. Statistically, most small businesses fail within a few years. Small business investments are among the most risky that investors can make. This guide suggests items to consider for determining whether you should make a small business investment.
A basic principle of investing in a small business is: Never make a small business investment that you cannot afford to lose entirely. Never use funds that might be needed for other purposes, such as college education, retirement, loan repayment, or medical expenses. Instead, use funds that would otherwise be used for a consumer purchase, such as a vacation or a down payment on a boat or RV.
Above all, never let a commissioned securities salesperson or an officer or director of a company convince you that the investment is not risky. Any such assurance is almost always inaccurate. Small business investments are generally highly illiquid even though the securities may technically freely transferable. Thus, you will usually be unable to sell your securities if the company takes a turn for the worse.
Also, just because the state has registered the offering does not mean the particular investment will be successful. The state does not evaluate or endorse the investment. (If anyone suggests otherwise to you, it is unlawful.)
If you plan to invest a large amount of money in a small business, you should consider investing smaller amounts in several small businesses. A few highly successful investments can offset the unsuccessful ones. Even when using this strategy, do not invest funds you cannot afford to lose entirely.
Although there is no magic formula for making successful investment decisions, certain factors are often considered particularly important by professional venture investors. Some questions to consider are as follows:
How long has the company been in business? If it is a start up or has only a brief operating history, are you being asked to pay more than the shares are worth?
Consider whether management is dealing unfairly with investors by taking salaries or other benefits that are too large in view of the company's stage of development or by retaining an inordinate amount of the equity of the company compared with the amount investors will receive.
For example, is the public putting up 80% of the money but only receiving 10% of the company shares?
How much experience does management have in the industry and in a small business? How successful were the managers in previous businesses?
Do you know enough about the industry to be able to evaluate the company and make a wise investment?
Does the company have a realistic marketing plan and does it have the resources to market the product or service successfully?
There are many other questions to be answered, but you should be able to answer these before you consider investing.
The two classic methods for making money on an investment in a small business are resale in the public securities markets following a public offering and receiving cash or marketable securities in a merger or other acquisition of the company.
If the company is the type that is not likely to go public or be sold out within a reasonable time (i.e., a family owned or closely held corporation), it may not be a good investment. Irrespective of its prospects for success because you may not be able to cash in on the investment. Management of a successful private company may receive a good return indefinitely through salaries and bonuses but it is unlikely that there will be profits sufficient commensurate with the risk of the investment.
The Disclosure Document usually used in public venture offerings is the “Form U-7”, which has a question and answer format. The questions are designed to bring out particular factors that may be crucial to the proper assessment of the offering. Read each question and answer carefully. If an answer does not adequately address the issues raised by the question, reflect on the importance of the issue in the context of the particular company.
Even the best venture offerings are highly risky. If you have a nagging sense of doubt, there is probably a good reason for it. Good investments are based on sound business criteria and not emotions. If you are not entirely comfortable, the best approach is usually not to invest. There will be many other opportunities. Do not let a securities salesperson pressure you into making a premature decision.
It is generally a good idea to see management of the company face-to-face to size them up. Focus on experience and track record rather than a smooth sales presentation. If at all possible, take a sophisticated business person with you to help in your analysis.
Beware of information that is different from that in the Disclosure Document or not contained in the Disclosure Document. If it is significant, it must be in the Disclosure Document or the offering will be illegal.
Greater numbers of public investors are “getting in on the ground floor” by investing in small businesses. When successful, these enterprises enhance the economy and provide jobs for people. They can also provide new investment opportunities, but that must be balanced against the inherently risky nature of small business investments.
In considering a small business investment, you should proceed with caution, and above all, never invest more than you can afford to lose.
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