Dry Bones Mud House's BIG picture is to unveil the story of coffee and stoke the fire of community. To do that we will provide a relaxing and inspiring atmosphere to build community, a high-quality and unique specialty coffee experience, opportunities that foster prosperity, and customer service that is outstanding and personal. Dry Bones understands that authentic relationships are fostered and nurtured. Our passion for coffee is second to none and we desire to educate our customers about one of the most popular beverages in the world. We also seek to connect with our customers on a deeper level. Whether it be through community projects, fundraising for local charities and non-profits, or providing in-house services, our desire is to know our 'regulars' on a first name basis. Fluid work flow, good financial stewardship, experienced and expert staff, an inviting atmosphere, and high quality specialty coffee and foods is the recipe by which Dry Bones will find success and become a 'third place' for anyone visiting or living in Indianapolis. We feel for many people their journey with coffee will begin at Dry Bones Mud House.
Revenue share loan investing explained
How it works: Investors loan funds and share in a percentage of cash received from every sale made by the business until they earn a maximum return.
Use this simplified calculator to become more familiar with the mechanics of a revenue share loan and how it compares to a more traditional debt instrument.
1 free coffee per day, 1 free bag of coffee beans, and 1 other free merchandise item
Investor will receive one free cup of coffee for life, 1 free bag of freshly roasted coffee beans for the life of the investment, and 1 free merchandise item from our retail shop.
1 free coffee per day and a free merchandise item
Investor will receive one cup of house drip coffee per day for the life of the investment and a free merchandise item of their choosing when made available.
1 free coffee a week and a free merchandise item
Investor will receive one cup of house drip coffee a week for the life of the investment and a free merchandise item of their choosing when available.
2 free coffees a month
For a $10,000 investment, the investor will receive two cups of house drip coffee a month for the life of the investment.
Free coffee monthly
For a $5,000 investment, the investor will receive one cup of house drip coffee a month for the life of the investment.
This is an overview of the previous and planned financings of the business, including the capital needs the business is looking to cover in the current financing.
What is the composition of your current team?
Danny and Becky Tippit are the owners and key management personnel. In addition to the founding team, Dry Bones Mud House has retained the accounting services of Robin Calmes.
Finally, Bellissimo Coffee Advisors (Portland), Tinker Coffee Company (Indianapolis), and Espresso Enterprises (Indianapolis) will provide key industry advisory and supplier services.
Provide detail on your hiring plans
In addition to Danny's lead operational duties, a shift supervisor (an experienced barista) will be in charge of providing supplemental management support. The shift supervisor will also take the role of the floater, assisting and resolving bottlenecks, as necessary. In addition to the manager and shift supervisor, Dry Bones will employ a full staff of Baristas and Customer Service Representatives. The mainstay of our staffing will be the Barista and the Customer Service Representative (CSR). At the start of business Dry Bones intends to employ 5-7 people, depending upon demand and growth. The growth of employees over the next five years will depend on the growth of business and the hours we maintain.
There are three primary roles that Baristas/CSRs will take at the various areas on the floor:
- Cashier / POS: The CSR in this station will ring up customers and assist with our unique ordering process and will communicate all orders and drinks to the barista, as well as serve pastries and other items from the pastry case. This role acts as the face of the company and main customer support contact.
- Barista: The Barista on duty will prepare the espresso drinks and all other beverages and serve them to customers. They will assist in serving light food items when necessary. They will keep the espresso station and all related services areas clean and stocked at all times.
- The Floater: This CSR, as the name implies, floats about the store and takes care of miscellaneous duties, such as helping to prepare and serve beverages, cleaning, refilling the condiment area, removing the garbage, and tending to customers. The Floater will also be responsible for food preparation and assembly, as well as overseeing the customer service area, delivering food, answering phones and keeping the space clean.
The CSR/Barista work schedule will be divided into two or three shifts (morning, afternoon, evening). Each shift will have two or three Baristas and a manager (the number may change, depending on customer flow of the store), who share different duties throughout the shift. Additional staff might include an inventory CSR at the back of the store, and others - depending on the requirements of the store. If the store is busy, it might also have two baristas at one station; this is especially common on busy days.
Key staff will attend Bellissimo’s Online American Barista & Coffee School, where they will learn the fundamentals of running a coffee business and proper food and beverage preparation techniques.
Provide us with some background on your products and services.
Dry Bones Mud House is a progressive cafe, focusing on quality, quick service beverages and food. No other coffee shop in the area will provide the simple and unique range of coffee drinks, tea, iced beverages, brewing methods, and other products that Dry Bones will. The quality of coffee, pastries and food items will be superior to our competition.
Dry Bones Mud House will serve only the highest quality, 100% Arabica coffee from many of the world’s distinctive producing regions, including, but not limited to the following origin countries: Ethiopia, Kenya, Colombia, Costa Rica, Guatemala, El Salvador, Brazil, Sumatra and Tanzania. These coffee beans will be roasted to exacting standards, producing flavors unsurpassed in fullness, balance and complexity.
Our hand-crafted coffee and espresso-based beverages will be supplemented by traditional teas, specialty bottled juices, specialty sodas, hot chocolate and chai lattes. It will also offer “made-to-order” coffee beverages, utilizing different brewing techniques, and will focus on educating customers on how to brew coffee.
Beverage selections will be complemented by a light line of fresh breakfast, lunch, and dinner items. Catering to the needs of the customer, as well as the consistent flow of business clientele, Dry Bones will have a selection of sandwiches (hot and cold), salads and other options which can be consumed on premise, or taken to go for a quick quality meal option.
What is your production process?
Dry Bones Mud House is aware of how quality ingredients, great customer service, and a distinctive ambiance can create a superior product and atmosphere that can distinguish a business from its competition. To this end, Dry Bones will focus on perfection in everything it does: it will serve the best coffee, baked goods, and light food items and dazzle our clientele with the best customer service. It will accomplish this through our commitment to product quality and by elevating espresso to its true potential as an art form. Dry Bones Mud House will also implement unique ordering systems to accommodate high volume, and enhance the speed of service and overall customer experience. All of the baristas will be trained to pour "latte art," a technique that combines the perfect espresso extraction with properly textured milk to create a gourmet presentation that can only be found in the select few highest quality cafes in the world. Dry Bones coffee beverages will be made fresh and served immediately to ensure a quality product.
Instead of the generic treatment customers receive in many cafe operations, Dry Bones Mud House will focus on creating a warm, gratifying experience. Its ‘customer-is-always-right’ attitude compliments our in-depth knowledge of everything that is related to coffee and baked goods. Unlike other coffee businesses in the Indianapolis, IN area, Dry Bones baristas will strive to know each regular customer by name and drink and have regular loyal customers from the surrounding neighborhoods, as well as substantial commuter, office worker, and local residents. Its servers will have extensive knowledge of the food and beverage being offered to create a quality customer service experience. They will be able to describe the unique qualities of the food served and pair it with the unique qualities of the beverages and coffee, strengthening the relationship between customer and server.
Dry Bones Mud House will only outsource for the highest quality products. Baked goods will be locally outsourced and daily prepared and delivered. Deli foods will, likewise, be locally outsourced and daily prepared and delivered. For our items cooked in-house, i.e. paninis and soups, fresh ingredients will be used and purchased from local whole foods markets. As for our coffee beverages, Tinker Coffee Company will roast all coffees brewed on site. Weekly to bi-weekly deliveries will be required as we will only use coffees no longer than up to two weeks after their roast date in order to provide the freshest coffees to every customer. As for bottled drinks and teas or quick snack items, Dry Bones will work with a local food distribution company for those weekly delivered items. Dry Bones prides itself on working to support and partner with local entrepreneurs who have a reputation for producing the highest quality products just like Dry Bones prides itself in serving the highest quality coffees and providing top-notch service.
What is your product development timeline?
With our creative and attractive logo and branding ideas, we have already begun developing and creating what we believe will generate a cult-like following of Dry Bones Mud House. Unlike any coffee shop in Indianapolis, the unique ambiance we intend to create will drive business along with a strategically marketed brand and a highly desired outstanding product. With this intentional approach to our first shop, we have future plans to open a Dry Bones Mud House in each of the five cultural districts in Indianapolis, with each shop having a unique presence and feel for each of those districts.
We truly believe with our ideas for branding will bring to life our one of a kind logo and drive merchandise production and spread it like wildfire throughout Indianapolis which will advertise our shop in Fountain Square, but also produce anticipation as we explore other locations through the Indianapolis area.
In addition to driving our logo driving merchandising and brand affiliation to Dry Bones, we desire to be roasting our own coffee in about five years. With the current location, we have our sights on it will not only allow us to grow but to also have a separate space for a roastery to include storage space.
How do you sell your product or service?
Dry Bones Mud House will be selling direct to customer in our retail store. We'll be using modern POS system to track sales and evaluate customer rewards programs. We aim to create a destination for our customers; their "third space" outside the home and office. Being a ‘third space’ for folks is important to Dry Bones. Having ‘spaces’ within that space is an intentional step to provide the atmosphere that best compliments Dry Bones’ customers' needs. Dry Bones will cater to the growing trend among students, local residents and business owners who want to study or do business in the favorable setting of a coffeehouse. The coffee bar will become exceptionally attractive for this purpose because of its free on-premise WI-FI wireless network providing Internet connectivity to students and business professionals with laptop computers and smart phones.
How do you market your product or service?
Our marketing program will be based on the following pillars.
- Product Quality: We plan on reaching our market by delivering a product of unsurpassed quality at a fair price. Because of our commitment to quality and our unique concept, we feel our coffee bar will become a destination for those desiring a superior and exceptional experience. Americans and especially local residents in Indianapolis, IN are becoming more coffee-educated. When prepared properly, with quality ingredients, we have found that people will go out of their way to find the flavors these specialty coffee beverages can offer.
- Employees: Dry Bones Mud House feels that our employees are our most important marketing tool. We will spend an unusually large block of time selecting and training each employee. Our employees will be taught to strive for superior customer service and will be required to maintain a very upscale appearance and dynamic vibe. Our training program will require a minimum of 25 hours of initial training per employee. Extensive study, testing, and supervised hands-on training will be necessary to understand correct drink preparation, ordering support and specific customer-service principles. Any employee presented with a customer concern will be empowered to take whatever action is necessary to resolve the situation in a favorable manner for the customer as quickly as possible.
- Customer Service as a Focus: Our marketing strategy will be to offer the best, most highly personalized service in the marketplace we serve. We believe that providing our customers with what they want, when they want it, with a polite, personalized and friendly interface is the key to repeat business and word-of-mouth advertising. We will exceed our customers’ expectations and go out of our way to make sure that our customers know that they truly matter to us. Regulars will be known by name and favorite beverage, and first time visitors will feel welcomed to the point that they want to return. Word of mouth advertising will also be key, as we plan to create an atmosphere worth talking about.
- Image and Publicity: Dry Bones Mud House will combine its grassroots marketing and merchandising strategies to create and reinforce a distinctive image for its coffees and light food with a service-oriented approach. Professional designers will produce all of our merchandising and marketing materials. Our logo and branding will be distinctive, classy, and easily remembered. Our signage will be unique and eye-catching. Advertising will be accomplished through various promotions in conjunction with public relations activities, flyers within the community, press releases, cross marketing with local businesses, notices and coupons in the local publications, and eye-catching banners and signs. In order to create a strong, thriving customer base, we will also incorporate loyalty cards and swipe cards thru our custom platform, and creative daily specials. Our unparalleled beverage quality, certified products and unique customer service platform will be our best advertisement; nothing promotes a business better than exuberant customer references. We plan on hosting regular coffee, food, and beverage events that will encourage customer participation and inspire a strong customer base.
- Website, Advertising and Social Media: Dry Bones Mud House has launched a website, www.dbmudhouse.coffee, that will focus on providing relevant local content to coffee lovers and our patrons. The immediate focus of our home page will be to state the mission and unique position of Dry Bones Mud House in our community and our progressive ordering platform. Our website will be a fun, informative site that can be accessed by parents and children. We will feature coffee information from our coffee roaster each quarter and use our site to contact customers about new products, featured coffees, special offers or activities we are sponsoring.
We will use social media to connect to the wider coffee drinking world in the Indianapolis area by constantly updating customers to product offerings and specials. We will potentially run regular ads in targeted news websites and local catering to our immediate clientele. We plan to distribute flyers around our location, as well as alert local news sources and media about our unique business. We will promote our grand opening as well and invite all press and local clientele with a direct mailer.
We have developed Facebook, Instagram, & Twitter profiles to allow our customers to follow the latest happenings and specials at our coffeehouse, along with the development of a blog/newsletter sign-up and contact database.
Who are your target customers?
Our target market will primarily consist of local patrons with a broad range in age and ethnicity. Our typical age demographic will be primarily those 20-50 years old. These clients include:
- Residents/Commuters: Clientele will be composed of those who live in the surrounding area in which we open. Dry Bones Mud House will provide a perfect setting for informal and business meetings offering free Wi- Fi. This sector will also represent the commuter customer on there way to and from work. In 2017 zoning and construction will begin on a new residential/commercial building that will be located less than 200 yards from the proposed Dry Bones location. In addition to that, construction has already begun on a similar building project less than half a mile from the proposed location.
- Offices & Workers: Clientele will include those who work in the area, and who are looking for an escape from their day-to-day routine. These will be regular customers who will likely frequent our business 3-5 days a week, establishing a core clientele. The above-mentioned apartment building projects will also have spaces that will be leased to small businesses. This will add to our office worker customer base.
- Retail & Shopping: Clientele will include shoppers and customers of area retail businesses as well as local attractions and commercial clientele.
What market(s) are you in?
Our specific location will be in the Fountain Square community in Indianapolis, IN. Customers’ demand for excellent coffee and convenience has yet to be met in the surrounding area. We are convinced that a strong market and customer demographic exists for a locally owned and operated “quick-service” specialty coffee bar that focuses on producing coffee beverages aimed at coffee lovers.
Specialty coffee and gourmet specialty drinks are enjoying a tremendous growth in popularity, level of sophistication, and overall awareness nationwide. The manner in which this growth has occurred has made it apparent that we are in the midst of a trend and not a fad. Specialty coffee and coffee cafés and wine bars have filled this void by giving people an alternative beverage as well as a place to meet and socialize. The Specialty Coffee Association of America projects that the specialty coffee retail segment will continue its explosive rate of growth.
According to the Specialty Coffee Association of America, of the estimated 40,000 operating units in the United States at the beginning of 2014, 57% were independent coffeehouses (1-3 units), 3% were small chains (4-9 units), and 40% were chains (10 or more units). By the end of 2015, it was approximately 50,000+ operating units.
“Consumption in the five leading importing countries (France, Germany, Italy, Japan and the United States) is about 51.5 million bags during the calendar year 2013, as compared to 49.7 million bags for the same period of the previous year.”
While traditionally viewed as an export crop, coffee consumption in coffee producing countries is on the rise. Brazil’s 2014 domestic consumption was 21 million bags and is close to displacing the United States, 23.4 million bags, as the single largest coffee consuming market. The United States imported about 27.5 million bags of coffee in 2014, accounting for almost one quarter of global coffee (un-roasted) imports, making it the world’s largest single buyer. Brazil, Vietnam and Colombia account for 25%, 18%, and 13% of those imports respectively.”
The specialty coffee market is growing approximately 10-15% annually, and growth is expected to continue at or above this pace for the foreseeable future. Sales of specialty coffee are relatively steady and not subject to significant cyclical or seasonal variation. Because the industry includes a diverse group of retail types with different characteristics, it is more meaningful to break out analysis of the industry into four specialty coffee retail groups. The first group, Coffeehouses/Cafés (beverage retailers with seating) has average annual sales of $550,000. The second group, Coffee Kiosks and Drive-Thrus (beverage retailers without seating) has average annual sales of $300,000. The third group, Coffee Carts (mobile beverage retailers) has average annual sales of $140,000. Finally, the fourth group, Coffee Bean Roaster/Retailers (roasting on premises) had average annual sales of $925,000. Dry Bones Mud House will compete primarily in the Coffeehouses/Cafés segment.
1. Coffeehouses/Cafés (beverage retailers with seating) = 66.5% of total market
2. Coffee Kiosks and Drive-Thrus (beverage retailers without seating) = 14.6% of total market
3. Coffee Carts (mobile beverage retailers) = 7% of total market
4. Coffee Bean Roaster/Retailers (roasting on premises) = 8% of total market
5. Food, Drug & Mass Merchandiser Specialty Bean Sales = 4.0% of total market
Who are your competitors?
Beyond Starbucks and other chains, Dry Bones Mud House’s direct competitors include a handful of independent retail coffee businesses. Our indirect competitors are other businesses that serve coffee, but whose primary focus is food. Other indirect competitors have different focuses such as a candy shop, bicycle shop, record shop, etc. There are no Starbucks within in the immediate area of Fountain Square. However, there are ten Starbuck’s within a 5 mile radius of our proposed location and are major direct competitors because of their strong financial position, bustling and convenient locations, brand recognition and established marketing and operational practices. However, despite their entrenched market position, many customers favor smaller, independent establishments that offer unique atmospheres and a higher quality coffee at affordable prices. The average consumer often will recommend a regional chain or independent before a national chain because of the difference in product quality and the non-corporate ambience.
What is your competitive advantage?
Dry Bones Mud House will lead the competition by serving incomparable specialty beverages, freshly roasted coffee, baked goods, other beverages, and light food items in a inviting and comfortable setting. We will provide an informal and unique coffee house ambiance with a contemporary and dynamic flare. Our customer service will be superior to any business in the area. We will build brand loyalty with our customers by promoting our products and overall customer experience as above the ordinary. The major reasons that customers return to a particular café are the quality, speed of service, its quick and friendly service, pleasant ambience and convenience. These factors, in combination with our simplified menu, ordering process, competitive prices and unique theme, will allow us to build a strong and loyal customer base.
Dry Bones Mud House will remain competitive by focusing our marketing strategy on attracting new customers, retaining existing customers, encouraging all customers to spend more, and return more frequently. We believe that through intense training of our baristas, developing an amazing brand and being creative, and a truly new type of service experience that we can dominate the market.
Danny will oversee all operations of Dry Bones Mud House. In charge of day-to-day operations, he will be a hands-on owner/manager.
Danny opened, owned, and operated CheerAuthority Athletic Center, a cheerleading training facility in Orange Park, FL in 2004. He was involved in all operations of the facility including, but not limited to: management of all coaches and staff, instructing tumbling classes, choreography and coaching of majority of competitive all-star teams and school squads. Danny also had his own music editing and choreography business outside of CheerAuthority. Through CheerAuthority Danny traveled around the country working with other all-star programs and schools. He was also a judge for local, regional, and national competitions, as well as a regular judge for local school squad try-outs. With the assistance of his wife, Becky they both managed the financial aspects of the business.
Becky has opened, owned, and operated her own tumbling school in Arizona called Southern Arizona Cheer and Tumbling School, also known as Southern Arizona CATS. It was primarily a school for teaching tumbling and coaching aspiring cheer athletes for upcoming tryouts for local school and competitive all-star squads. Becky managed all aspects of the gym, including, but not limited to instructing all tumbling classes, developing a preschool cheer program, stunt and flexibility classes, and cheer 101 classes, and cheer try-out preparation classes. Becky ran all aspects of the financials for Southern Arizona CATS.
Becky has management and team leadership experience. She held a ministry position at Oasis Church as the nursery director where from inception she developed and implemented the nursery program as well as coordinated volunteers and their schedules. Becky is currently a teacher who has spearheaded and led several different teams of teachers over her decade-long teaching career. Becky's unique ability to manage a team, organize systems, and cook a mean panini will greatly add to the high quality of service expected in a specialty coffee shop.
Bellissimo Coffee Advisors
Dry Bones Mud House will be contracting the services of Bellissimo Coffee Advisors, a Portland-
Oregon based company specializing in coffee business consulting. The consultants of Bellissimo, Inc.
possess an extensive background in specialty coffee and food service operations.
Tinker Coffee Co.
Tinker Coffee Co. is a specialty coffee roaster located in Indianapolis, Indiana. They are focused on roasting the finest specialty coffees from around the world and providing visitors with a unique and educational experience.
Dry Bones Mud House is contracting with Tinker Coffee Co. to source high-quality, flavorful coffees by way of wonderfully roasted beans through the use of top notch brewing equipment. Tinker Coffee Co. is providing Dry Bones Mud House with the best in equipment, training, and education for our customers and baristas. Tinker is also providing maintenance service for equipment as contracted for the agreed upon time frame for equipment acquired through Tinker Coffee Co.
Principal Attorney, Wormser Legal
Dry Bones Mud House has sought the legal counsel and expertise of Barry Wormser and his team at Wormser Legal for advisement and assistance in wading through the legal processes of a start-up. Barry's easy going approach and willingness to lay out all of the 'what ifs' to allow his clients to be aware all required legal documents and potential processes provides confidence to move forward without fear of missing a step.
Barry's expertise specifically in business, securities, and real estate law are particularly reassuring as to the ability to navigate these legal waters smoothly in the start-up of Dry Bones Mud House.
About Dry Bones Mud House
|Entity||Dry Bones Mud House LLC|
|Location Type||Office Building|
|Comments||Dry Bones Mud House is interested in starting small. This would be a shared space such as a lobby or retail space that desires to have a specialty coffee shop as an amenity for residents or employees, depending on the emphasis of the space/building. Currently we are in discussions with the owners of The Union 525 building on S. Meridian St., just south of South Street in Indianapolis, IN. As advertised on their website the Union 525 “was created for tech companies by tech entrepreneurs.” These investors purchased the Union 525 building and have since leased out a portion of the 120,000 sq ft space to several tech start up companies like Smartfile, Springbuk, and Scale Computing. They also have partnered with a cowork company called Launch Indy which is a new cowork space developed by the creators of Launch Fishers located just outside of the Indianapolis area. They have leased 10,000 sq ft of this space for entrepreneurs to collaborate and innovate. In addition to these companies Eli Lilly and Company have rented out an entire floor for use by contractors they employ. Keeping in step with this idea to provide a high-tech, amenity filled, fun atmosphere for these tech start-ups to thrive, The Union 525 wants to provide specialty coffee beverages and products for the more than 300 members and employees in the building. The owners have proposed two years without a lease payment and doing the entire buildout for the coffee bar that will be in the main lobby of the Union 525. With other proposed benefits this is the perfect situation for Dry Bones to step into and start serving coffee immediately to the hard working employees and their friends and family at the Union 525. The coffee bar will also be open to the public. A couple of cool landmarks near the Union 525 is the Rolls Royce offices just across the street from the Union 525 buildling where about 500 plus employees work. There is a large U.S. Postal Hub just on the other side of the Rolls Royce building and beside that is Lucas Oil Stadium, home to the Super Bowl Champion Indianapolis Colts. There are several other restaraunts around us as well. Tow Yard Brewing company is on the backside of the Union 525, just on the other side of Madison Street. Shapiro’s Deli, famous for its breads, meats, and cheeses, feeds people daily just about half a mile south of the Union 525. And the oldest bar/pub in Indianapolis, the Slippery Noodle, is less then half a mile north of the Union 525. It is a great location with an already present customer base which will allow Dry Bones to be profitable almost immediately. As we seek this location and continue discussions with the owners of the Union 525, our eyes and ears are open looking and listening for other small opportunities like this should this one fall through. Starting in a smaller square footage in a newly renovated or constructed residential/retail location will typically provide for similar build out benefits and leasing accommodations. This is our start up plan when it comes to locations which will help keep our overhead much lower providing a need for a much lower capital fundraise. Address: The Union 525 525 S. Meridian Indianapolis, 46225|
Business status: No current fundraise
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Expressing Interest FAQ
Expressing interest covers a few different functions. First, it acts as your indication to the business that you have a potential interest in considering an investment. It is also the means by which you are able to access additional materials from the business. The reason you must express interest to view this information is so that the business can keep track of who has accessed their sometimes confidential information. Lastly, expressing interest allows you to keep in touch and stay updated on the progress of the business as they work through their fundraise.
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Committing to Invest FAQ
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Your commitment will make you eligible to receive any perks available to investors for which you meet applicable eligibility requirements. Note that you are not guaranteed a spot in the fundraise until the business has approved your investment. Once you have committed and the business has finalized their investment terms, you can continue on to complete your investment and submit it to the business for approval.
A commitment shoud be treated as binding. If you do not plan to move forward with an investment, you should not commit to doing so. However, you are not irrevocably committed to investing until 3 days after the business has approved your investment and countersigned your investment documents.
You can commit to invest at any time. Commitments help show traction in the fundraise to other investors, so the earlier you are ready to make your commitment, the better. This will help the business in its efforts to attract additional investors to their fundraise.
The business owners are the only people that will have this information. No other investors will know that you committed to invest, only that someone committed to invest. The aggregate amount of commitments is shared with other interested investors.
No. You will still need to provide an electronic signature on the investment documents and select a method to transfer your funds. You will need to wait to complete these steps until the business has finalized their investment terms.
Once you have committed to invest, you will review and sign the investment documents.
Signing Documents FAQ
When you make an investment in a business, you enter into legally binding contract that outlines your rights as an investor. The specific documents you sign will vary based upon the type of security you are investing in (i.e. debt or equity). Every investment will include an investor questionnaire document that will be pre-populated with information from your investment account that provides proof of your eligibility to invest in the offering. These documents act as your proof of investment and provide all of the details about your investment and your role as an investor. You should read these documents carefully before investing.
Your investment documents will be pre-populated with information from your investment account to help identify you, including your SSN which the business needs in order to produce tax documents for your investment. There will also be information about your personal financial situation on the documents to help provide proof of your eligibility to invest in the offering.
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We can help you complete an investment for the following investor types: self-directed IRA, joint with spouse, entities, and trusts. Contact us if you would like to make an investment of a type other than as an individual.
Once you have reviewed and signed investment documents, you will choose how you would like to transfer funds.
Transferring Funds FAQ
The business owner will then receive your proposed investment and accept and countersign it.
The business will wait to accept your investment until their funding target has been reached.
For most fundraises, there are three options to choose from when transferring invesment funds.
- 1. Electronic Transfer - transfer your funds by electronic ACH transfer. You will need to connect a personal bank account in order to use this transfer method.
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Fund transfers do not occur until the business has accepted your investment and the funding target has been reached.
Fund transfers do not occur until the business has accepted your investment and the funding target has been reached.
If you transfer your funds via electronic transfer, the funds will be transferred from your bank account as soon as the business reaches their fundraise target and accepts your investment. You will receive a notice two business days prior to the electronic transfer occurring. If you transfer funds via check or wire, you will need to complete the fund transfer outside of the Localstake Marketplace platform.
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If the business you invest in reaches their funding goal, they will be making payments to you over the Localstake Marketplace platform. If you use electronic transfer for your investment, these payments will be made back to the bank account you linked for your electronic transfer. If you do not set up an electronic transfer for your initial investment, you may do so on your bank account page once you log in.
If the business you invest in does not reach their funding goal, your investment funds do not need to be transferred to the business and will remain in your account.