EnergyFunders is funding with the idea that investing in oil and gas (oil & gas industry news) the traditional way was a slow process, which could be improved upon. The three Texas lawyers who founded the crowdfunding platform knew that this platform type could expedite the process and make it much more transparent with the use of new technology and the JOBS Act changes to legislation. This legislation allows capital infusions through equity investment and EnergyFunders seeks to use this new regulation to make sure that the production industry and domestic exploration are receiving their share of the billion dollar crowdfunding market (equity crowdfunding growth).

While new technologies and energy sources may eventually replace the gas and oil market, this is a long way off and these forms of energy are still the major energy sources used by millions of people in their homes and businesses. EnergyFunders wants these energy entrepreneurs to be able to take advantage of this profitable resource by generating funds through investment to get their businesses operational. Their platform provides the utmost in due diligence and transparency which is what the industry expects of those who wish to drill a well.

Crowdfunding will allow investors to participate through joint operation agreements through their web platform where they can look through pre-vetted oil drilling projects or re-working projects, can view the details of the potential investment online, and can submit all of the required legal documentation as per regulation quickly and easily. The current marketplace requires 1.4 million barrels of oil per day and production has difficulty keeping up with the required oil amounts.

This means that drilling operations are able to tap into a market where there is a known shortfall. It’s not like anyone producing oil will end up unable to sell it with the way the current market is using it. This type of project, investment, and crowdfunding is for individuals who are serious and want to take advantage of pre-vetted investment projects with the highest stringency for criteria. EnergyFunders will vet the oil and gas projects and make them available to verified-only investors for low buy-in prices. Projects are generally low risk with high return and are often hard to find for the average investor looking to get their foot in the door with this industry. Analysis on engineering review, financial metrics, title review, and stringent negotiations with the operator ensure you’re getting access to deals you couldn’t find anywhere else.

These projects will be based around single or multi-well drilling projects which are available in whole or part to be backed by investors. Jumping in at this early stage means you are capable of getting the highest possible investment return. EnergyFunder will receive 10% interest in the project LLC, investors will receive their pro-rata share of the well minus the 10% interest owned by EnergyFunders. For this fee, you won’t have to deal directly with project operators or worry about the stringent laws surrounding the industry and its dealings. They receive no other compensation beyond this percentage and you won’t be charged any other fees by the company as an operator or investor.

This means you can rest assured that EnergyFunder is only listing deals it thinks will actually work. Otherwise, they’d get nothing out of it. Buy in amounts will depend on the particular project but will be as low as possible once all factors are considered.

Legal contracts are required as this is a highly regulated industry and payments are made to investors on a quarterly basis as they are with most business ventures. All costs will be reflected and disclosed in the investor’s materials so that they are full aware of any details involved in the project.

If you’ve always dreamed of getting in on the oil and gas action, EnergyFunders is one of the easiest ways to do so. They take the hassle and some of the risks out of investing in such projects by having high standards for transparency and compliance with regulations.