How to get involved in crowdfunded foodie projects
Here's one way to support emerging food companies, and some interesting projects open right now.
Crowdfunding websites like Kickstarter and Indiegogo offer entrepreneurs the opportunity to raise funds for their businesses and, at the same time, test the waters as to their potential popularity without too much risk.
The funds come from voluntary payments made by a wide range of 'backers' who want the project to succeed. In return, backers get perks (this is known as 'reward crowdfunding') or, in some cases, financial returns on the cash they put in (known as 'equity crowdfunding').
Perks can range from an invite to the launch party to good discounts to special items, and this varies depending on how much you decide to pledge.
There are a lot of factors to consider, such as whether the project is located nearby, the amount they want you to give, and what you’ll get in return, but there are some very interesting projects out there. The best perks come in the form of big discounts on an as-yet unreleased innovative product, ongoing rewards, and access to special events.
Crowdfunding
Crowdfunding is a fairly recent phenomenon that is swiftly becoming more popular. Earlier this year, Mexican chain Chilango tried to raise £1 million to fund expansion by offering investors a financial return on their money and free food for a certain period. On the same platform, Crowdcube, Hugh Fearnley-Whittingstall’s River Cottage raised the same amount within 36 hours.
Some crowdfunding websites operate an ‘all-or-nothing’ approach, which means that fundraisers receive nothing if they don’t reach their target and those who have pledged money are not charged. So you either succeed, or you fail. However, others let the companies keep what they have raised, even if they don't reach their target.
I’ve picked out a few projects that I think have potential, but you can search the entire food categories on Kickstarter and Indiegogo. Note that I'm only giving these as an example, and not endorsing these sites over any other. I'd always recommend that you pick projects and rewards that interest you, regardless of who is offering them.
You’ll find that many projects are based abroad – be sure that the company you want to fund is actually able to supply your perk if this is the case. And be aware that you may also have to cover shipping costs.
Sonic Decanter
Make rubbish wine into great wine. Sounds impossible, but it's no joke. The Sonic Decanter (pictured above) ‘ages’ wines to enhance their taste and aroma in around 15 minutes using ultrasonic energy. It has been proven to reduce sulphur dioxide and soften tannins. These, explains the project organiser, are the things that affect flavour. And it really works on reds and whites.
Check out the project to find out more about how it works, and for $149 (£95), you can get your own (including shipping from the US). That’s a quite a bit to put in to the project up front, but it's a massive discount on the proposed RRP. And if you can effectively turn a £7 bottle of wine into a £20 bottle, it’ll pay for itself over time.
Wize Monkey Coffee Leaf Tea
How can you best help coffee farmers earn more and lift themselves out of poverty? We found out about coffee flour earlier this year, which utilises discarded cherry pulp to offer a new line of income to farmers. A second way to improve their livelihoods might be found in the leaves of the coffee plant, which can be brewed to make a tea.
The leaves can be harvested year-round and have a high antioxidant content and low caffeine content. Money raised through crowdfunding will be used to develop the product range and invest in coffee-growing communities – see the tiered goals on the Kickstarter page to learn more.
Rewards include product samples, mugs, tote bags and if you invest $5000 CAD (£2,844), you even get a 10-day guided trip to Nicaragua. For most though, the real reward here is the happy knowledge that you've helped a good cause.
Taylor Street Baristas
This one is for serious investors, and once your money is locked in, you can’t get it out until the bond matures. For an investment of £500 or more, you can choose between a return of 8% gross interest per annum over four years, or a 12% return payable in store credit. Once your bond matures, you reclaim your initial investment. Your money will be used to expand the company.
If you’re willing to put £10,000 into this, you get more benefits, and the top five investors will get a free coffee every day for the term of the bond. Note that this type of investment comes with risks, including the potential loss of your investment, and you should make yourself familiar with all relevant risk material before deciding to invest. You can learn more about finance-oriented crowdfunding investments on our sister website lovemoney.com.
Have you ever put money into a crowdfunding project? Do you know of any other active projects you think other Lovefood readers might be interested in? Share your thoughts in the Comments below.
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