Why would you crow fund a restaurant to £100k or at all
Discussion
DonkeyApple said:
Not missing anything. It's a generation that doesn't really grasp how money works. They've grown up with abnormally wealthy Boomer parents which has distorted their concept of value while being brain washed by global businesses to believe that their world is different from anything that has gone before in terms of how money works.
The net result seems to be that they haemorrhage cash as if it is an endless supply. They buy expensive clothes to replicate a fashion that stems from using cost less clothing from charity shops, they will pay massively increased margins on goods if you tell them that the slave who made the goods was happy and not dead in a ditch. They have absolutely no control over their spending and will just borrow to give it away in exchange for goods of no value.
Crowdfunding is a wonderful example of taking a very well established and crooked model for raising finance that no Millenial would like because it is old world and wrapping it up in an app, using funky buzzwords and charitable pretence to rape higher than ever fees out of easy money fools and businesses of no commercial value. The broker doesn't even need to fake due diligence any more, the advent of apps has meant he can now access the dimmest section of society for almost no cost so he can tap them up for fractional investment. He can charge much higher fees and raise dumb money that will never dare question what is going on. At the same time, his corporate clients either have insufficient education to source investment from legitimate sources or the business is uninvestable or they are too lazy to do the work so they fall into the hands of the broker who will charge them enormous fees and then continue to milk out as much of the investment capital as possible as enforced consultancy fees.
After a couple of years the activity of selling sandwiches that cost you £10 to make which you sell for £8 all the money raised has been sucked out in fees and paying the salaries of half a dozen buffoons.
But the investors and business owners walk away from the venture having lost everything but not realising that they have been part of a scam as old as the dawn of time but is now masked by bright colours and trending terms like 'pop up shop' etc.
Quality rant. Enjoyed it. Thank you.The net result seems to be that they haemorrhage cash as if it is an endless supply. They buy expensive clothes to replicate a fashion that stems from using cost less clothing from charity shops, they will pay massively increased margins on goods if you tell them that the slave who made the goods was happy and not dead in a ditch. They have absolutely no control over their spending and will just borrow to give it away in exchange for goods of no value.
Crowdfunding is a wonderful example of taking a very well established and crooked model for raising finance that no Millenial would like because it is old world and wrapping it up in an app, using funky buzzwords and charitable pretence to rape higher than ever fees out of easy money fools and businesses of no commercial value. The broker doesn't even need to fake due diligence any more, the advent of apps has meant he can now access the dimmest section of society for almost no cost so he can tap them up for fractional investment. He can charge much higher fees and raise dumb money that will never dare question what is going on. At the same time, his corporate clients either have insufficient education to source investment from legitimate sources or the business is uninvestable or they are too lazy to do the work so they fall into the hands of the broker who will charge them enormous fees and then continue to milk out as much of the investment capital as possible as enforced consultancy fees.
After a couple of years the activity of selling sandwiches that cost you £10 to make which you sell for £8 all the money raised has been sucked out in fees and paying the salaries of half a dozen buffoons.
But the investors and business owners walk away from the venture having lost everything but not realising that they have been part of a scam as old as the dawn of time but is now masked by bright colours and trending terms like 'pop up shop' etc.
essayer said:
I saw Taylor Street Baristas raised >£1m via crowdfunding recently. Paying 8% interest - was surprising they didn't try and raise it a 'traditional' way given how busy their shops are
They may be busy but are they profitable, I admit banks used to lend on "jam tomorrow" but not so much these days.essayer said:
I saw Taylor Street Baristas raised >£1m via crowdfunding recently. Paying 8% interest - was surprising they didn't try and raise it a 'traditional' way given how busy their shops are
Just because a business is provably profitable and has heaps of traditional security to offer doesn't mean a bank will lend it even a conservative amount. So in summary - invest £5,000 and receive £1,500 worth of food to be taken in the form of a Monday Christmas lunch.
It doesn't sound like a great return to me.
I wonder how many people fail to provide the cash when it comes to the crunch? I'm staggered they've secured £100,000 of investment, for at most £30,000 of repayment.
Would anyone here like to crowdfund my next car :
£50 - I'll send you a signed photo of the car
£100 - I send you a signed photo of me and the car
£1,000 - you can borrow the car for a day (max 100 miles)
£5,000 - you can borrow the car for 3 days (Mon to Wed in Feb, max 300 miles)
It doesn't sound like a great return to me.
I wonder how many people fail to provide the cash when it comes to the crunch? I'm staggered they've secured £100,000 of investment, for at most £30,000 of repayment.
Would anyone here like to crowdfund my next car :
£50 - I'll send you a signed photo of the car
£100 - I send you a signed photo of me and the car
£1,000 - you can borrow the car for a day (max 100 miles)
£5,000 - you can borrow the car for 3 days (Mon to Wed in Feb, max 300 miles)
JQ said:
So in summary - invest £5,000 and receive £1,500 worth of food to be taken in the form of a Monday Christmas lunch.
It doesn't sound like a great return to me.
I wonder how many people fail to provide the cash when it comes to the crunch? I'm staggered they've secured £100,000 of investment, for at most £30,000 of repayment.
Would anyone here like to crowdfund my next car :
£50 - I'll send you a signed photo of the car
£100 - I send you a signed photo of me and the car
£1,000 - you can borrow the car for a day (max 100 miles)
£5,000 - you can borrow the car for 3 days (Mon to Wed in Feb, max 300 miles)
Don't forget to smile in the signed photo of you driving your car that I paid for It doesn't sound like a great return to me.
I wonder how many people fail to provide the cash when it comes to the crunch? I'm staggered they've secured £100,000 of investment, for at most £30,000 of repayment.
Would anyone here like to crowdfund my next car :
£50 - I'll send you a signed photo of the car
£100 - I send you a signed photo of me and the car
£1,000 - you can borrow the car for a day (max 100 miles)
£5,000 - you can borrow the car for 3 days (Mon to Wed in Feb, max 300 miles)
DonkeyApple said:
Not missing anything. It's a generation that doesn't really grasp how money works. They've grown up with abnormally wealthy Boomer parents which has distorted their concept of value while being brain washed by global businesses to believe that their world is different from anything that has gone before in terms of how money works.
The net result seems to be that they haemorrhage cash as if it is an endless supply. They buy expensive clothes to replicate a fashion that stems from using cost less clothing from charity shops, they will pay massively increased margins on goods if you tell them that the slave who made the goods was happy and not dead in a ditch. They have absolutely no control over their spending and will just borrow to give it away in exchange for goods of no value.
Crowdfunding is a wonderful example of taking a very well established and crooked model for raising finance that no Millenial would like because it is old world and wrapping it up in an app, using funky buzzwords and charitable pretence to rape higher than ever fees out of easy money fools and businesses of no commercial value. The broker doesn't even need to fake due diligence any more, the advent of apps has meant he can now access the dimmest section of society for almost no cost so he can tap them up for fractional investment. He can charge much higher fees and raise dumb money that will never dare question what is going on. At the same time, his corporate clients either have insufficient education to source investment from legitimate sources or the business is uninvestable or they are too lazy to do the work so they fall into the hands of the broker who will charge them enormous fees and then continue to milk out as much of the investment capital as possible as enforced consultancy fees.
After a couple of years the activity of selling sandwiches that cost you £10 to make which you sell for £8 all the money raised has been sucked out in fees and paying the salaries of half a dozen buffoons.
But the investors and business owners walk away from the venture having lost everything but not realising that they have been part of a scam as old as the dawn of time but is now masked by bright colours and trending terms like 'pop up shop' etc.
lol. awesome The net result seems to be that they haemorrhage cash as if it is an endless supply. They buy expensive clothes to replicate a fashion that stems from using cost less clothing from charity shops, they will pay massively increased margins on goods if you tell them that the slave who made the goods was happy and not dead in a ditch. They have absolutely no control over their spending and will just borrow to give it away in exchange for goods of no value.
Crowdfunding is a wonderful example of taking a very well established and crooked model for raising finance that no Millenial would like because it is old world and wrapping it up in an app, using funky buzzwords and charitable pretence to rape higher than ever fees out of easy money fools and businesses of no commercial value. The broker doesn't even need to fake due diligence any more, the advent of apps has meant he can now access the dimmest section of society for almost no cost so he can tap them up for fractional investment. He can charge much higher fees and raise dumb money that will never dare question what is going on. At the same time, his corporate clients either have insufficient education to source investment from legitimate sources or the business is uninvestable or they are too lazy to do the work so they fall into the hands of the broker who will charge them enormous fees and then continue to milk out as much of the investment capital as possible as enforced consultancy fees.
After a couple of years the activity of selling sandwiches that cost you £10 to make which you sell for £8 all the money raised has been sucked out in fees and paying the salaries of half a dozen buffoons.
But the investors and business owners walk away from the venture having lost everything but not realising that they have been part of a scam as old as the dawn of time but is now masked by bright colours and trending terms like 'pop up shop' etc.
jeff m2 said:
Crowd funding is not new.
Just a name change from "seed" or "venture"
What is new is that they are targeting a wider audience.
I have a buddy who seeds restaurants, a bit north of 100K though, usually with two or three partners. He does ok.
That must be a long and risky game ! His gonads must be large!Just a name change from "seed" or "venture"
What is new is that they are targeting a wider audience.
I have a buddy who seeds restaurants, a bit north of 100K though, usually with two or three partners. He does ok.
Craikeybaby said:
One of my wife's friends is crowd funding a trip to see her family in America later this year, I thought she was taking the piss until I saw the page for it. Even more shocking is that people have pledge north of £500 already for her to go on holiday!
Don't you need a business plan for crowdfunding platforms?do you have a link for her page?
V8mate said:
I'm not speaking from a position of knowledge, so maybe someone involved in investment banking or financial legals etc could confirm, but I wonder if asking for investments in the more traditional sense would fall foul of financial regulations? What crowdfunding exercises tend to do is pre-sell the company's product or service. For a 'proper' investment, there would have to be a compliant prospectus, share allocations and all that malarkey?
Crowdfunding isn't investing, you get what's on offer and that's it. Just ask anyone who backed Oculus Rift and the outrage that followed when he sold to FacebookOakey said:
Crowdfunding isn't investing, you get what's on offer and that's it. Just ask anyone who backed Oculus Rift and the outrage that followed when he sold to Facebook
But didn't they get a free headset? Surely all they have to do is upload the 'life of a billionaire' program and sit back on their vinyl sofa and whack away to their hearts content? 528Sport said:
Craikeybaby said:
One of my wife's friends is crowd funding a trip to see her family in America later this year, I thought she was taking the piss until I saw the page for it. Even more shocking is that people have pledge north of £500 already for her to go on holiday!
Don't you need a business plan for crowdfunding platforms?do you have a link for her page?
Gassing Station | Finance | Top of Page | What's New | My Stuff