Help New Restaurant/Cafe Open

[brk-lnt]

Originally Posted by Jonas Pilot

So for a $5,000.00 investment I get my name on a wall, my name on a menu, a free soda, a free t-shirt, my name on a lunch special, a web link, 52 lunches for two, and a used table. All this for only a $5,000.00 donation. That sounds like a fair deal, for the business.

I take it you (and others) are somewhat unfamiliar with Kickstarter?

Kickstarter is a way of crowd-sourcing startup investments. Individuals can post business plans, set investment levels, and set rewards. Because Kickstarter can't deal with ensuring everyone is an accredited investor, you are really "pre buying" and not technically "investing".

The person running the campaign chooses what you are buying for your "investment". Sometimes they want to build a $50 widget, and a $250 investment gets you 5 widgets, or 5 widgets and a thank you note, or generally some other scenario of you getting exactly what you purchased.

In other campaigns, the person is looking for pseudo-donations, the value of the thing you get is going to be less than the value of the goods/services you receive, but that is only if you are discounting the philanthropic effect of your donation.

if the funding goals are not met, the person does not get the partial funds raised.

There is absolutely nothing wrong with this method of raising funds. It is more beneficial to the entrepreneur than taking out a bank loan, and gives more people the ability to help participate in the stimulation of the economy, with financial risk managed to their tolerance level.

[Jonas Pilot]

There is absolutely nothing wrong with this method of raising funds. It is more beneficial to the entrepreneur than taking out a bank loan, and gives more people the ability to help participate in the stimulation of the economy, with financial risk managed to their tolerance level.[/QUOTE]

Yea, OK.

[Newbiesaukee]

This may be a good idea, certainly microloans for very specific purposes seem to be helpful in underdeveloped countries.

I do not see $20,000 as any reasonable amount for the setting up of a restaurant, so I guess I don't get it. Perhaps the entrepeneur has significant other funding sources.

[GTO]

Originally Posted by brk-lnt

I take it you (and others) are somewhat unfamiliar with Kickstarter?

Kickstarter is a way of crowd-sourcing startup investments. Individuals can post business plans, set investment levels, and set rewards. Because Kickstarter can't deal with ensuring everyone is an accredited investor, you are really "pre buying" and not technically "investing".

The person running the campaign chooses what you are buying for your "investment". Sometimes they want to build a $50 widget, and a $250 investment gets you 5 widgets, or 5 widgets and a thank you note, or generally some other scenario of you getting exactly what you purchased.

In other campaigns, the person is looking for pseudo-donations, the value of the thing you get is going to be less than the value of the goods/services you receive, but that is only if you are discounting the philanthropic effect of your donation.

if the funding goals are not met, the person does not get the partial funds raised.

There is absolutely nothing wrong with this method of raising funds. It is more beneficial to the entrepreneur than taking out a bank loan, and gives more people the ability to help participate in the stimulation of the economy, with financial risk managed to their tolerance level.

It may be a legitimate (kickstart) but Still sounds way too risky for me and in a world where you can't trust anyone these days........as the Sharks would say. "I'm Out". Everyone thought that Bernie Madoff was legit too

[MarkinNH]

Originally Posted by brk-lnt

if the funding goals are not met, the person does not get the partial funds raised.

If the goal is not met and the person does not receive the funds raised through the donations, what happens to the funds that were raised ?
Do the people who made donations get the $$ back ?

[Pineedles]

Although I didn't spend a lot of time on the web-site, it does say that if the goal is not reached the donors get their money back. This concept is pretty unique and if you are interested, go to the site and read about it. It's easy to make jokes about it being a scam, but I don't see it as that. If you look at the site there are projects that return to the donor a 10th of what they contribute yet they are funded at 130%, 200%, and more. Why? People either are supporting the arts in their own way or they like the recognition.

There's a restaurant in NYC that if you dine with them about 1,000 times they'll paint a caricature of you on their wall. Some people are willing to do this. A bit crazy? Maybe. It does take all types to make the world go round.

[brk-lnt]

Originally Posted by MarkinNH

If the goal is not met and the person does not receive the funds raised through the donations, what happens to the funds that were raised ?
Do the people who made donations get the $$ back ?

Yes.

So, you look at an idea and kick in $10 or $100 for someone that is trying to raise $5000. If you're the only believer, then it never gets funded and you're out nothing. If it does get funded, then you are clearly not the only one who sees merit in the idea.