Can crowdfunding save your company? Apparently not for the inventors of the SlideBelt, a belt used by hikers to survive if lost in the woods.
Even though the California company was, per the Sacramento Bee, on ” Inc. Magazine’s annual list of the 5,000 fastest-growing companies in the United States, with three-year revenue growth of 328%.”
Its growth required debt financing which quickly overpowered its revenues. The company turned to a Regulation A crowdfunding campaign, hoping to raise about $3 million to pay down its burdensome debt load.
But the crowdfunding fell short by about $2.6 million.
Finding that it “was suddenly overextended on inventory, operations, employee headcount, and financing, rendering the Debtor unable to pay its debts as they come due,” the couple who started the business in their garage in 2007, have put the company into a Chapter 11 bankruptcy reorganization.