Business

Red hits $10 million crowdfunding campaign goal

Red Mountain. - Submitted
Red Mountain.
— image credit: Submitted

Red Mountain Resort hit its $10 million crowdfunding campaign goal last week.

In August, Red Mountain Resort launched a campaign called “Fight the Man, Own the Mountain” on Start Engine, with the goal of securing $10 million in reserved investments. Red hit that goal last Thursday morning, and as of Tuesday afternoon was up to $10,476,501 in reserved investment, with 2,918 individual reservations.

Howard Katkov, chairman and CEO of Red Mountain Ventures, said he’s surprised by the strong response the campaign has been receiving.

“I’ve been gratified and surprised that we reached our goal by last week,” he said Tuesday, “and what surprised me even more was how the momentum picked up. For instance we did $600,000 in reservations in November, a little under $800,000 in December, $2.7 million in January and $1 million in February already, so that surprised me — that it’s really kind of gotten a life of its own.”

Red has now entered Phase 2, the legal and accounting phase, which will include a two-year audit of Red Mountain Ventures. Katkov expects to be ready to launch equity offers in the fall.

In the meantime, those interested in investing can continue to make reservations.

“Although we have reached our goal, we don’t know what the conversion rate will be, how many people will actually go from a non-binding reservation to an actual writing of a cheque,” said Katkov.

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