Author Topic: Crowd funding for breweries: craftfund.com  (Read 1827 times)

nawhite

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Crowd funding for breweries: craftfund.com
« on: October 23, 2013, 02:11:05 PM »
I was at the Great American Beer Festival a couple weeks ago and got to talking to the guys at the CraftFund booth. Basically its a crowdfunding portal for the craft brewing scene. I hadn't really been interested in crowdfunding before as I'm not sure the platforms give investors enough information to make informed investment decisions. But in a case like this, if its a local brewery where I like the beer, I may throw $1000 at them and bike over and enjoy a beer when I like. I see it almost like buying a "lifetime membership" to the brewery which has the possibility of profit sharing.

Thoughts?

http://www.craftfund.com/

Cromacster

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Re: Crowd funding for breweries: craftfund.com
« Reply #1 on: October 23, 2013, 02:21:48 PM »
I've always been kinda leery about crowdfunding.  In theory I like the idea.  It's fun to see a cool idea then help it come to fruition.  But to think of it is an investment is the wrong thought process.  Unless the craftfund is different from kickstarter or indiegogo, you aren't investing...you are usually pre-buying a product that isn't real yet.  A local brewery near me did this.  I believe it was something like 1,000 and you drink for free as long as it is up and running.  It would have been cool to say "hey, I had a part in making this a reality".  If I really wanted to be a part of the process I would open my own brewery, which is a labor of love, not money (although it does require alot of money to start one).

I suppose if you are debt free and well on your way to FI, its your money, go for it.  But its not an investment. I suppose it may be if you exclusively drink there and after 200 pints you are in the black!

nawhite

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Re: Crowd funding for breweries: craftfund.com
« Reply #2 on: October 23, 2013, 02:41:08 PM »
I'm kinda leery about croudfunding too personally but at the same time I'd be ok putting <1% of my net worth into one of these especially if I got an exorbitant amount of equity for my investment.

Just to be clear too, this is very different from kickstarter or indiegogo. You would actually be buying equity in the company, not paying for a reward. This is through the new JOBS Act rules which are currently under review at the SEC and should be finalized around February. (Basically the new rules allow non-accredited investors to invest up to $2000 or 5% of their income, whichever is more, per year in companies which are doing public fundraising rounds. It used to be only accredited investors could participate in these types of rounds)

dragoncar

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Re: Crowd funding for breweries: craftfund.com
« Reply #3 on: October 24, 2013, 09:03:50 AM »
Crowd funding isn't really about ROI.  I think its more of a philanthropic endeavor.  If you want that, then you are crowd funding by putting cash in a credit union.