Why would you crow fund a restaurant to £100k or at all
Discussion
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?
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?
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.
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.
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.
That was wonderful, thankyouThe 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.
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.
I like the cut of your jib, how do i send you the money for this sandwich company?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.
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.
Love this... excellent work DA, you old cynic 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.
Some friends took us there just before Christmas. It was packed at lunchtime serving pub-grub at restaurant prices.
The owner does have a good local reputation and the premises offer good collateral, in an area with higher levels of disposable incomes prevail. There is probably a fair chance that the investors will make a return.
However for dining out in Heswell, Nova around the corner is a much better proposition.
The owner does have a good local reputation and the premises offer good collateral, in an area with higher levels of disposable incomes prevail. There is probably a fair chance that the investors will make a return.
However for dining out in Heswell, Nova around the corner is a much better proposition.
What strange responses.
Crowd-funding offers the world at large the opportunity to take a stake in businesses on whatever terms are offered. Unless 'daddy' is happy to bank-roll your entrepreneurial flights, after decades of having few other options than the dry, High St banks to turn down funding for your ideas, technology is cutting out the middleman and all his infrastructure costs.
The article in the OP doesn't give much information about the crowd-funding exercise, but with a successful operation already running, getting local people to support a second branch is a great idea. What a great way to get local people and customers (literally) invested in your business and its success. And who knows what the terms of the funding were... I think it's highly likely that 'just gift us some cash' wouldn't have delivered them £100k.
t, generic restaurants though. You'd be surprised how few companies actually own the array ubiquitous restaurants which fill our towns.
Crowd-funding offers the world at large the opportunity to take a stake in businesses on whatever terms are offered. Unless 'daddy' is happy to bank-roll your entrepreneurial flights, after decades of having few other options than the dry, High St banks to turn down funding for your ideas, technology is cutting out the middleman and all his infrastructure costs.
The article in the OP doesn't give much information about the crowd-funding exercise, but with a successful operation already running, getting local people to support a second branch is a great idea. What a great way to get local people and customers (literally) invested in your business and its success. And who knows what the terms of the funding were... I think it's highly likely that 'just gift us some cash' wouldn't have delivered them £100k.
AlexC1981 said:
Still, mental to give your own money to fund someone's business, when it is not as if the average high street is short on restaurants these days. 
Full of st, generic restaurants though. You'd be surprised how few companies actually own the array ubiquitous restaurants which fill our towns.DSLiverpool said:
bhstewie said:
hstewie 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! Click 'Campaign' and you'll see what people got for their investment down the right hand side.
https://www.kickstarter.com/projects/1158079571/bu...
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...
Lunch or dinner than basically?Click 'Campaign' and you'll see what people got for their investment down the right hand side.
https://www.kickstarter.com/projects/1158079571/bu...
I am a little surprised as I would have expected people would want more of an "investment" than a one off, each to their own though.
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)Click 'Campaign' and you'll see what people got for their investment down the right hand side.
https://www.kickstarter.com/projects/1158079571/bu...
bhstewie said:
hstewie said: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...
Lunch or dinner than basically?Click 'Campaign' and you'll see what people got for their investment down the right hand side.
https://www.kickstarter.com/projects/1158079571/bu...
I am a little surprised as I would have expected people would want more of an "investment" than a one off, each to their own though.
DSLiverpool said:
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!
Crowd-funding usually offers access to the product (depending on size of pledge) rather than ownership/return. For example, those who pledged $300+ to finance Oculus Rift received the first development kits in return, which were sold to others for $300.heads 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!In this case, they had a range of tiers - https://www.kickstarter.com/projects/1158079571/bu...
V8mate said:
What strange responses.
Crowd-funding offers the world at large the opportunity to take a stake in businesses on whatever terms are offered. Unless 'daddy' is happy to bank-roll your entrepreneurial flights, after decades of having few other options than the dry, High St banks to turn down funding for your ideas, technology is cutting out the middleman and all his infrastructure costs.
Well, that's the groovy spin anyway. Crowd-funding offers the world at large the opportunity to take a stake in businesses on whatever terms are offered. Unless 'daddy' is happy to bank-roll your entrepreneurial flights, after decades of having few other options than the dry, High St banks to turn down funding for your ideas, technology is cutting out the middleman and all his infrastructure costs.
In reality, the middleman is still there except he has even higher turnover of 'acts' and can now operate in a near unregulated environment and say and do whatever he likes to get a fee vehicle away. And the amazing additional upside is that he doesn't even need to trouble himself with the concept of investor exit anymore.
You are right that on the surface it seems all new and amazing. There will also, as with all great wheezes, be a few success stories that are used repeatedly as the marketing means to get any old junk away to people who have done no due diligence. But the basic reality is that this is just the good old fashioned penny share model that has been rebranded and supercharged and with the same 'middlemen' involved who were always lying in wait for 'businesses' which couldn't get conventional backing because the mean old fuddyduddies didn't understand their modern business model of not making any profit or being able to return the money.
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.
As a member of that generation you wistfully generalize about....you are quite correct! 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.
My facebook feed for the first couple of years out of university was bizarrely filled with people still laughing about how close/how far in their overdraft they were - as if it was something to be proud of. Next couple of years it was the cars bought on finance/leased....and then I gave up on the site entirely!
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