Venture capitalists and other wealthy investors have been a major boon to high-tech and forward-thinking food startups; traditional restaurants not so much. However, new federal regulations that go into effect this week should make it a lot easier for restaurateurs to raise money, according to CNBC.
The new rules, enacted as part of the Obama administration’s JOBS Act, are designed to take advantage of crowdfunding platforms like Kickstarter. But instead of offering rinky-dink incentives like coffee mugs and T-shirts, operators could entice investors with a more meaningful return on their investments, like stock in the company.
Experts quoted by CNBC suggest this method will allow regular diners to become stakeholders in the local restaurants they love, offering a type of support that comes with additional perks that you just don’t get through traditional financing.
“Customers who are turned into investors have a vested interest in your business,” one financial advisor told CNBC. “Unlike banks, these investors will be marketing and sales agents. This will be great for food trucks and restaurants.”