You've got questions, We've got answers- Private Investing 101
Wow! Only 3 weeks in and we are so close to 50% of our goal of raising $250,000. We are so grateful to you, our community, for showing up and supporting Bucha Brew. We were unsure about raising money given the global crisis. The outpouring of generosity from our growing tribe has really solidified our purpose, vision and drive to move forward.
For those of you just joining us, Bucha Brew launched a community raise 3 weeks ago. This means that 👉 YOU 👈 can invest in our private company! You receive shares in Bucha Brew, and as we grow so does your the value of your investment. Depending on your investment size you can also receive free kombucha and swag. Lastly, and the part that we love the most, is you join our amazing community of like minded folks to help us work towards a more resilient future.
We have received a great deal of positive feedback as well as a ton of great questions. We wanted to address a few of them here.
Q: How much can I invest?
A: Quick answer is up to $5000.
Expanding on this, you are able to invest more than $5000 if you are a:
- Friend or family
- Business associate
- Accredited investor
Q: When will I see a return on this investment
A: This is a longer term investment, and you can expect your money to be in for at least 4-6 years.
Q: How will I see a return on my investment?
A: With a private investment there are a few ways you could see a return, by which your shares are bought from you at a higher prcice than you paid
- Industry Trade Sale- Bucha Brew is sold to a larger company who wants to expand on their “good for you” offerings.
- IPO- Bucha Brew is taken public, in this case you would be able to sell your shares when the company goes public
- Management Buy Out- Once Bucha Brew becomes profitable, management may offer a buy out to early shareholders at current market value
Q: Will you ever offer dividends?
A: Never say never, but it is unlikely that Bucha Brew will offer dividends in the near future. Small companies like ours typically reinvest all profits to help nourish and grow the business, to build a higher overall company value
Q: I have never invested before, what should I look for before investing?
A: You could ask 10 people this question and you could get 10 different answers! The best feedback we had after our last round was that our investors were really excited to be investing within their values, they believed in the team and saw an opportunity for growth in the category… Oh, and don’t forget about the overall profitability and margins, as good margins are key to be able to make money.
