Welcome to Foodstart – the only crowdfunding portal designed exclusively for the food-and-beverage industry. Using Foodstart’s online platform, business owners can raise capital in small-dollar increments from the same people who are the key to their success: their customers. And with its one-time fee of only 4%, Foodstart is also cheaper and faster than any other funding source!
BENEFITS TO CUSTOMERS
1.) Great rewards and perks.
Back a new, local restaurant, brewery or food product and get great rewards such as…
-a guaranteed table.
-private reservation phone lines.
-menu items named after them.
-insider updates from the owner via a blog.
-invitation to an annual party where new menu items are sampled-and so on.
2.) A feeling of supporting something new and cool.
Our cities and towns rely on places to gather, put our smartphones away, and actually talk to one another face to face. By backing a business on Foodstart, you help make the places we live become even better places. And for ten bucks, that’s pretty cool.
3.) A simple way of supporting a friend’s new business.
Before Foodstart and other crowd funding platforms like Foodstart.com, there simply wasn’t a mechanism to back a friend’s new restaurant with a small amount of money. Now you can tell your friend, “Hey, I got your back. I want to see this work too!”.
BENEFITS TO BUSINESS OWNERS
1.) Fill seats and sell product.
A loan officer at a local bank might have 200 businesses in his or her portfolio and can only go to dinner at one restaurant each night. A Foodstart business client, however, might have hundreds of Foodstart backers – 1/3rd of whom are deciding where to eat out on any given night.
2.) Low-cost capital.
Our market research shows that the majority of potential backers would prefer to be paid with discounts, freebies, and VIP privaledges rather than cash. This presents an extraordinary value proposition for the business owner since food costs are typically only 1/3 of the listed menu price. And try drawing down a Bank of America line of credit with free dessert!
3.) Faster and cheaper SBA-backed loans.
While Foodstart helps business owners raise capital, some clients will need to tradiitional sources for the balance of their funding needs. But even SBA-backed loans require that approximately 20% of the capital being raised be backed by cash collateral – in other words Foodstart business clients can leverage capital raised through Foodstart.com on a 5:1 basis.
4.) Managed customer flow.
If business is typically slow on, say, Tuesdays, owners can offer incentives to bring in investors on Tuesdays. And unlike Groupon, Foodstart.com’s customers have, in effect, paid in advance for long-term access to the goods and services you offer – they’re not ultra-price-sensitive shoppers seeking a one-time discount on some food. Rather they’re put money up front to show that they are behind your business and want to create a long-term relationship.
5.) Total control over their businesses.
Foodstart backers aren’t buying equity. Or even giving you a loan. They’re just prepurchasing a consumer good. That’s good news for you – not only do you get the capital up front but you also don’t have to manage the documentation and rights of hundreds of stockholders.