Background

ECFiber was formed in April 2008 as an Inter-local Agreement among 23 towns in East Central Vermont. Its mission is to bring community-owned, subscriber-funded fiber-optic internet service to every business and residence in its member towns.

ECFiber originally intended to secure funding from institutional investors through public markets. This source of funding dried up as a result of the September 2008 financial meltdown. Since then we have been unable to find funding through federal and state stimulus programs or through conventional lenders.

In 2009, ECFiber decided to construct its network in increments, financed by the sale of promissory notes sold to individuals in member towns. The notes would be tax-exempt at the state and federal level. On January 1, 2011, we closed on $912,000 of financing and began the process of building Phase 1, reaching portions of Royalton, Bethel and Barnard, VT. As of April 2012 ECFiber has over 170 connected subscribers and more are being installed every week. On December 1, 2011, an additional $350,000 was raised for Phase 2, extending the network in Barnard and Bethel.

On April 2, 2012, ECFiber closed the first round of financing for Phase 3, intended to extend the network into Tunbridge, Strafford, Vershire, Chelsea, Thetford, and Norwich and build additional routes in the original three towns. This campaign was extremely successful, raising over $1 million.

ECFiber is starting the campaign to finance the next phase, intended to extend the network into Pomfret and Sharon and to add to routes in the towns of Bethel, Barnard, Royalton, Tunbridge, Chelsea, Vershire, Strafford, Norwich and Thetford. We are looking for investors. Future closings are scheduled for July 2 and October 1, 2012.
For more information on this offering you can read or download an executive summary, or request a full investor packet to be mailed to you.

Closings

• Phase 1: 20 investors  – Raised $907,500 – Target: Initial loop in Royalton, Bethel, Barnard, and Royalton
• Phase 2: 30 investors – Raised: $350,000 – Target: Additional build-out in Barnard and Bethel
• Phase 3a: 176 investors  – Raised: $1,111,000 – Target: Extend into Tunbridge, Vershire, Chelsea, Thetford, and Norwich; build additional miles in Barnard, Bethel and Royalton, and expand existing network
• Phase 3b: closes July 2 – Target: Extend into Pomfret and Sharon and expand existing network
• Phase 3c: closes October 1 - Target: Expand the network further in the 23 member towns

Reasons to invest in ECFiber

• You are investing in the future of your Town.
• The people of ECFiber towns are best motivated to do this for themselves.
• Local businesses, especially those that are home-based, can't participate in the modern economy without reliable broadband service..
• Educational opportunities increasingly rely on broadband service.
• Opportunity for people to tele-commute. This saves time and reduces fuel use.
• Health care: allows patients to stay in closer touch with their health care providers, and reduces the need for office visits.
• Property values / salability. Without broadband, properties are difficult to sell or rent.
• You get to see a tangible result of your investment.
• You are getting a good financial return while investing in a worthwhile cause.