About the Consortium
A 501(c)(6) Regional Business League
Black Hills Consortium is the connective tissue ensuring 13 entities amplify each other's growth. Not a holding company extracting profits — a coordination hub powering rural revitalization.
The Structure
BHC is organized as a 501(c)(6) regional business league — tax-exempt, able to lobby for legislation, and free from corporate income tax. This structure was chosen deliberately: it allows BHC to coordinate economic development across 9 partner towns without the constraints of a traditional holding company.
Luke Alvarez retains 100% equity in all for-profit entities. No dilution. No external board pressure. No liquidation preferences. This ensures decisions are made for long-term ecosystem health, not quarterly returns.
The $52M capital raise works through a unique philanthropic mechanism: investors donate to Seed Foundation (501c3) for tax deductions, then receive profit-sharing agreements — not equity — from for-profit entity cash flow.
501(c)(6) Status
Tax-exempt business league. Can lobby for legislation, coordinate regional economic development, and operate without corporate income tax.
100% Founder Control
Luke Alvarez retains full equity in all for-profit entities. Profit-sharing agreements for investors, not equity dilution. No exit below unicorn ($1B+).
Philanthropic Capital
$52M raise through Seed Foundation (501c3). Tax-deductible donations with profit-sharing returns. Investors create both social impact and venture-scale upside.
Founder
Luke Alvarez
Luke Alvarez built Black Hills Consortium from scratch using AI as a force multiplier — 11 companies scaffolded in 11 days with a team of AI agents producing output equivalent to 255 humans. The entire ecosystem was designed to prove a thesis: AI-native operations can save dying small towns by making a single person as productive as a mid-size company.
The consortium is headquartered on the Grow Campus, 15 acres in Custer, South Dakota (population 2,100). Starting with 51 staff in Year 1 and scaling to 175 by Year 5, BHC creates direct and indirect employment across 9 partner towns in South Dakota and Wyoming.
Luke's commitment: no exit below unicorn ($1B+), 100% equity retention, and a mandatory VC donation model ($10K minimum to all charities per visiting VC) that ensures every investor interaction creates immediate philanthropic impact.
The Flywheel Mechanics
Every entity contributes to every other entity's growth. No single point of failure. The flywheel accelerates over time.
GrowWise generates revenue
AI-native cannabis SaaS platform serving 27,656+ potential customers. $59.1M V5 floor / $394.5M V4 ceiling Year 1. The economic engine of the entire ecosystem.
21% perpetual allocation
GrowWise allocates 21% of equity to three mission-driven entities: 7% to Auric Labs (accelerator), 7% to Seed Foundation (501c3), 7% to BHC (coordination). $41.4M/year by Year 5.
Settle the West brings talent
Remote worker relocation program modeled on Tulsa Remote (13.77:1 ROI). Workers need housing (Pass Creek), schools (Seed Academy), and daily services (THE OP). Each success story attracts more.
Outpost Media documents everything
Cannabis and rural media brand creating social proof, attracting investors, and feeding content to all 13 entities simultaneously. Build-in-public strategy amplifies the entire flywheel.
21% Perpetual Flywheel
$41.4M/Year by Year 5
GrowWise allocates 21% of equity to three mission-driven entities, creating a self-sustaining funding mechanism that compounds annually.
7%
Auric Labs
$13.8M/yr (Year 5)
Cannabis-tech accelerator and venture fund. Portfolio companies hire BHC talent.
7%
Seed Foundation
$13.8M/yr (Year 5)
501(c)(3) education and economic development. Seed Academy, Settle the West, THE CULT.
7%
BHC Consortium
$13.8M/yr (Year 5)
Regional coordination. Legal, compliance, investor relations, partnership development.