Investment opportunity: KombuchaTown equity crowdfunding campaign

Kombucha Town is a successful Seattle-area kombucha brand with sales up from $1.1m to $1.4m over the last year. They were the first brand to sell kombucha in recyclable cans. Since 2011, they’ve sold a cumulative one million cans — keeping a million bottles out of landfills. Over 1,600 stores in 24 States carry the brand.

This growth has occurred despite being under-capitalized, raising just $500,000 in equity to date. They’re poised to expand their product offerings to include a new line of Live Seltzer, a kids line of kombucha, performance-enhancing recovery drinks, alcohol or ‘hard’ kombucha, and much more.

Fundraising

On August 11th, they started raising capital via a community crowdfunding campaign on StartEngine, a tool that helps everyday people invest and buy shares in startups and early growth companies. This is different from the more well-known GoFundfMe donation system.

Investors can potentially make a healthy return on their investment via Convertible Promissory Notes being sold in minimum amounts of $250 per investor at a 15% discount that offers an 8% return rate added to the investment. The shares convert after two years or when the company has raised $1 million from all sources.

Over the first seven weeks, the Start Engine campaign has reached 108 investors raising almost $90,000.

What investors get

  1. Shares of equity in KombuchaTown in the form of Convertible Promissory Notes.
  2. Incentives such as discounts on kombucha, backpacks, and other gear.
  3. Supporting the environment via tree planting with One Tree Planted. They have already planted 3,200 trees on more than 15 acres of reforested land in the Pacific Northwest to secure salmon habitats in nearby waters.

Rewards kick in at different levels of investment:

  • Level 1: $250 – Can growler + 10 trees 
  • Level 2: $500 – cooler backpack ($25/$30) + 20 trees 
  • Level 3: $1,000 – 3 months product + 50 trees + Access to the brewers’ reserve flavor
  • Level 4: $2,500 – 10% off for life! + 150 trees + Access to Brewers’ reserve flavor
  • Level 7: $5,000 – Private Cocktail Experience/Mixologist + 250 trees + access to brewers reserve flavor + 9% Annual Interest Rate on notes
  • Level 8: $10,000 – VIP Experience + 500 trees + access to brewers reserve flavor + 10% Annual Interest Rate on notes

Why the funds are needed

The funds generated in Kombucha Town’s campaign will help launch a new line of Live Seltzer. This innovative product is ready to ship to retail outlets.

The campaign runs until mid-November.

Podcast

To hear more details about this investment opportunity, click on the podcast below.

Disclaimer

The content of this article is presented for informational purposes only. I am not an investment advisor, nor do I have any financial interest or sponsorship relationship with KombuchaTown. Check with your qualified financial advisors before proceeding. If you know of other kombucha-related investment opportunities, please send details to ian@boochnews.com.

You may also like...

Leave a Reply

Your email address will not be published.