Other than fighting, UFC athletes have also been investing in different businesses to generate income. However, a former UFC champion is facing difficulties with crowdfunding due to Securities and Exchange Commission (SEC) laws. Former UFC bantamweight champion Aljamain Sterling launched Funk Harbor rum, a relatively new venture, last year. After winning against Youssef Zalal at the Apex, ‘Funkmaster’ officially announced that his company is seeking crowdfunding. 

“Now we are able to officially announce that we’re doing crowdfunding for my company Funk Harbour Rum,” Sterling stated in the UFC Vegas 116 post-fight presser. “There are legal SEC laws that we have to abide by, so I couldn’t really talk about it because it’s about fairness and opportunities for people to invest. Guys, I have invested over $300K in this company, and there’s a reason why I did that, because I truly do believe in the brand.

“Obviously, to grow is to make money. But with that said, I actually do enjoy drinking, probably too much. And if you enjoy drinking, come along and take the ride with us. Me and my brother Merab, we’re invested in the company. We’re pushing as best we can. And Merab doesn’t drink like I do, but he will drink a little rum here and there on special occasions like tonight.”  

Aljamain Sterling has been promoting his ‘Funk Harbor’ rum alongside Merab Dvalishvili. Much like Conor McGregor’s Forged Irish Stout, which has seen strong growth, the former 135 lbs champ’s venture has also gained traction without reporting any major losses. So, the crowdfunding push could be a smart business move to help the brand grow further. But what could be the reason behind the Securities and Exchange Commission (SEC) delay?

There can be multiple reasons for delays when it comes to legal matters. But looking at the SEC’s guidelines, there are three key points regarding crowdfunding:

• Transactions must take place through an SEC-registered intermediary, such as a broker-dealer or funding portal.
• A company can raise a maximum aggregate of $5 million through crowdfunding within a 12-month period.
• There are limits on non-accredited investors, meaning individuals who don’t meet the SEC’s financial thresholds (net worth under $1 million or annual income under $124K).

In this case, Sterling’s company is seeking $1 million in crowdfunding through Republic, which is within the allowed limit. Also, the minimum investment range of $100–150 also falls within acceptable guidelines. However, the maximum investment cap of $250K appears to exceed the SEC’s non-accredited investor income threshold of $124K, which could have caused the delay while the company worked to align with those regulations.

Now, as Funk Harbor is already live on crowdfunding platforms like Republic, it appears the situation has been resolved. Beyond that, Sterling and his team have also promised attractive perks for crowd investors based on how much they invest.  

Ex UFC champ Aljamain Sterling is providing perks to the Fan Harbor investors 

As per the outlet, Republic, the former UFC bantamweight champion Aljamain Sterling is offering several perks that would appeal to his fans. Firstly, investors will receive $1 Class B non-voting common stock, meaning crowdfunders won’t have voting rights in corporate or governance matters, but can still benefit from potential profits.

As for the perks, those investing the lowest amount, reportedly $100–150, will receive a certificate, exclusive updates related to their investment from Sterling, and early access to limited-edition bottle drops. As the investment amount increases, the perks scale up accordingly.

If someone decides to invest the maximum $250K, the investor would receive all the benefits from the previous tiers, along with a training session with Aljamain Sterling and Merab Dvalishvili for themselves and three friends. That package also includes an exclusive fight week experience with VIP backstage access, dinner, and media opportunities. Lastly, the investor would earn the title of “Founding Shareholder.”

That said, with all those perks on offer, what do you think about Sterling’s new venture?