The Equity Crowdfunding Platform Turns Customers Into Investors
Alyson Wyers — April 8, 2015 — Lifestyle
References: equityeats & springwise
This equity crowdfunding platform is specifically for restaurants, so future customers can become capital-raising investors. Equity Eats also lets locals participate in the development of their neighborhood or city by enabling them to invest in future eateries they would want to eat at.
Entrepreneurs with viable business plans can fundraise for their new, hospitality-based venture by crowdfunding the capital their startup needs for future equity. Nearby community members can invest, turning their support into proof of concept. Like many other equity crowdfunding platforms, startups need to reach their goal before they can receive access to the collected finances.
Investors also get most of the profits until their original contribution is returned; afterwards they get a quarterly distribution. After all the investments are returned, EquityEats receives 1% of the profits as a managament fee.
Entrepreneurs with viable business plans can fundraise for their new, hospitality-based venture by crowdfunding the capital their startup needs for future equity. Nearby community members can invest, turning their support into proof of concept. Like many other equity crowdfunding platforms, startups need to reach their goal before they can receive access to the collected finances.
Investors also get most of the profits until their original contribution is returned; afterwards they get a quarterly distribution. After all the investments are returned, EquityEats receives 1% of the profits as a managament fee.
Trend Themes
1. Hospitality Crowdfunding - Entrepreneurs can utilize crowdfunding to raise capital for new, hospitality-based ventures, allowing customers to become investors.
2. Community-driven Development - Platforms like Equity Eats enable locals to participate in the development of their neighborhood or city by investing in future eateries they would like to eat at.
3. Equity Distribution Models - Equity Eats uses a unique distribution model where investors get most profits until their original contribution is returned, and then receive quarterly distributions.
Industry Implications
1. Restaurant Finance - Equity Eats is disrupting traditional restaurant finance by enabling entrepreneurs to fundraise through equity crowdfunding and allowing customers to become investors in future eateries.
2. Community Investment - Equity Eats is disrupting community investment by allowing locals to invest in future eateries they want to see in their neighborhood or city.
3. Equity Crowdfunding - Equity Eats is disrupting the equity crowdfunding industry by creating a platform specifically for restaurants and offering a unique profit distribution model for investors.
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