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Tagged: “Raising Capital”

MobCraft Beer’s Creative Sourcing of Recipes and Financing

MobCraft Beer’s Creative Sourcing of Recipes and Financing

MobCraft beer is a brewery and taproom with a unique business model of crowdsourcing ideas for beer recipes from their customers. Their brewery/taproom in Milwaukee cost just over $2 million to build. When MobCraft first started to raise money to finance their facility, they looked for institutional capital at first without much success and then pursued equity crowdfunding. Knowing how much equity they needed vs. debt to finance their facility build out and equipment needs helped them pitch specific asks to both banks and investors. They took advantage of the SBA 7a program to raise the debt they needed, talking to multiple banks before securing bank financing. They also worked with the landlord of their facility to help finance the improvements to the space, which worked as equity when approaching the bank. They then strategically sold their distribution rights to help raise cash.

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A Steady, Slow Growth Path For Quince and Apple’s Niche Domination

A Steady, Slow Growth Path For Quince and Apple’s Niche Domination

Matt and Clare Stoner Fehsenfeld are the married duo behind Quince and Apple, a national brand of small-batch, well-balanced preserves that are often paired with cheese and charcuterie. When they started their business, they realized that because they have a labor-intensive, artisanal product, their best strategy was not to compete on quantity or price. Instead, they chose to compete by dominating an emerging niche (pairing their products with specialty cheeses) while telling the defensibly unique story of their brand’s artisanal processes.

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How Love The Wild Built A National Brand For Frozen Farmed Fish

How Love The Wild Built A National Brand For Frozen Farmed Fish

Love The Wild CEO Jacqueline Claudia managed a fish farm before launching Love the Wild with co-founder Christy Brouker in 2014 to fill the gap in the market for convenient, delicious and environmentally friendly, freshly frozen seafood. The knowledgeable food entrepreneur community in Boulder helped Jacqueline understand the realistic path to building a national food brand, including meeting investor expectations and how much money it would take to grow the company’s top-line sales. Love the Wild is in the current cohort of companies in the Chobani incubator and counts Leonardo DiCaprio as an investor.

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The Capital Conundrum of Rural Economic Development

The Capital Conundrum of Rural Economic Development

The USDA’s programs serve not just agricultural producers but also rural businesses and rural people more broadly since farmers need strong small-town economies, institutions and infrastructure. This includes programs meant to incentivize and leverage private dollars for investment in rural areas. However, there is a big need to educate investors and entrepreneurs about realistic opportunities for investment and business development in rural America to leverage private as well as public dollars for the good of rural America.

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How Much Is My Food Company Worth? Valuations With LBW Wealth

How Much Is My Food Company Worth? Valuations With LBW Wealth

Company valuations should be done based on a rational justification of the future growth rate and future earnings of the company, as well as the fundamentals of the business model. For example, whether the company is defensibly unique and how long its competitive advantage can be sustained are both key drivers of a company’s value.

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SBA 504 Loans with Diane Byler of WBD

SBA 504 Loans with Diane Byler of WBD

An SBA 504 loan is a special product that can only be offered by a Certified Development Company (CDC) like WBD in partnership with a local lender. The 504 loan is designed to help small businesses grow and create jobs by financing fixed assets like real estate and equipment. Qualified borrowers receive long terms (20 years for real estate, 10 years for equipment); low, fixed rates and lower down payments (10%). The 504 cannot be used to do working capital but can be used in refinancing other loans under certain circumstances as well as for the “soft costs” associated with the project like appraisal, contingency, attorney fees, engineering, title, bank fees and inspection.

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Farm Credit With Paul Dietmann of Badgerland Financial (Now Compeer)

Farm Credit With Paul Dietmann of Badgerland Financial (Now Compeer)

The Farm Credit system consists of a farmer owned, farmer led co-ops which primarily lend to farmers and any agriculture producers anywhere in all 50 U.S. states and Puerto Rico, including manufacturing companies if majority owned by farmers. The book Fearless Farm Finances is a a farmer-friendly reference guide for all things financial relating to farming enterprises.

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Working With Credit Unions Like Summit Credit Union To Grow Your Food Business

Working With Credit Unions Like Summit Credit Union To Grow Your Food Business

Like all credit unions, Summit is a cooperative which exists to serve their members. Summit is based in south-central and southeast Wisconsin and is the #1 Small Business Administration (SBA) lender in Wisconsin among credit unions for the past 6 years. Summit helps food entrepreneurs access SBA 7a programs to provide up to $5 million of capital to younger businesses for working capital, inventory, and equipment purchases. The SBA 7a Express program provides a quicker turnaround than the traditional 7a, allowing for loans up to $350,000.

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Grow Your Food Business With Alternative Lenders Like WWBIC

Grow Your Food Business With Alternative Lenders Like WWBIC

WWBIC works with both women and men by offering relevant business classes, business loans up to $250,000, assistance with personal financial management, and connections to people who can make things happen for business owners and entrepreneurs across the state of Wisconsin. These classes and technical assistance help business owners document their business plan and get prepared to raise money.

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