Crowdfunding Works For Established Companies

Crowdfunding is not just for startups. In fact, more mature small businesses that have actual revenue and profits are actually better suited for equity or debt crowdfunding as their investor risk profile is less.

One recent example can be found in New Zealand where the Libelle​ Group, a “school tuck shop” (American translation: small food service establishment that caters to schools) is crowdfunding “to almost double its chain of 58 Champion tuck shops and to develop an app for Txt-My-Lunch, an online service that sends a pre-purchased meal ticket to a child’s mobile phone, or direct to the school, to be redeemed for a lunch at the school canteen.”

libelle-orange-black

Libelle is also planning a private placement concurrently with the crowdfunding effort in order to raise a total of NZ$3.3 million.

In addition, the effort provides some good public exposure to the company with little added expense.

(No endorsement implied).

https://www.stuff.co.nz/business/107906866/school-tuck-shops-seek-1m-in-crowdfunding-to-expand

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, balance, Banks, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, review, Small Business and tagged , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.