More breweries than ever before are turning to community capital- rather than institutional capital alone- to fund their craft beer ventures. Through Mainvest, both established and aspiring brewers can secure a round of funding from community supporters and fans. Using Revenue Sharing Notes, breweries can raise funds from both accredited and non-accredited investors and repay with a percentage of revenue rather than a set interest rate.
One main reason breweries choose Mainvest over institutional financing is the community engagement aspect of fundraising. Through Mainvest, breweries can accept investment from anyone in their community, regardless of wealth, status or experience. By providing financial incentives, they improve brand loyalty and reward regulars for their support.
Capital raised on Mainvest tends to be founder-friendly, and repayment is tied to quarterly revenue, not a set interest rate, so issuers repay investors as they grow. A major upside is that issuers decide on the terms of their revenue sharing note. Because it’s a debt instrument, there’s no dilution of ownership. They don’t require personal guarantees, so brewers don’t have to put their own finances on the line to grow the business.
A few examples of successful breweries in Florida that have raised through Mainvest include Charlie Foxtrot Brewing in North Port, Rule G Brewing in Parkland, Brass Knuckle Brewing Co in Melbourne, and Tepeyolot Cerveceria in Jacksonville. While each business and campaign is unique, all used a variety of grassroots and digital marketing efforts to engage investors of all backgrounds across communities. While they raised capital from their immediate network, they were also able to excite potential new customers.
More than $7 million was raised by community investors in 2020 alone for brewery projects around the country. Both experienced and first-time investors have chosen Mainvest to invest in craft breweries because it opens up investment opportunities to everyone. With targeted returns of 1.5x-2x, on average, it can be a method of diversifying into an alternative asset class that investors can actually care about and experience firsthand. To learn more about raising capital through Mainvest or investing in breweries directly, visit Mainvest.com.
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