Why would you crow fund a restaurant to £100k or at all

[DSLiverpool]

http://www.liverpoolecho.co.uk/whats-on/food-drink...

So £100k raised by 900 people, what do they get out of it? and do 900 people really think a hipster restaurant is essential 10 miles down the road from the first one ?

What am I missing?

[DSLiverpool]

So 900 dheads give £1k (I am generalising) in theory do they get it back ? is it a gift ? and seriously its in an area that is virtually all food!

[DSLiverpool]

bhstewie said:

I'm confused. Have the people who gave money donated it, or invested it (ignoring if they actually see a return)?

That's what I'm asking!

[DSLiverpool]

V8mate said:

Here you go.

Click 'Campaign' and you'll see what people got for their investment down the right hand side.

https://www.kickstarter.com/projects/1158079571/bu...

Got it, mainly meals as rewards at circa £100 a head (!) so the "founders" have paid about twice as much as I'll pay in about 10 days (I have to try the place and it'll take me 10 days to get a bit of beard going)

[DSLiverpool]

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.

[DSLiverpool]

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!