Brooklyn Warehouse raises $21,000 in 60 days

In just 60 days, its first time using crowd funding, they got 103 contributors who helped the Windsor Street eatery raise $21,450, or 71 per cent, of the original goal.

The money is earmarked to help cover a $30,000 renovation that once complete, will replace the restaurant’s summer patio with a permanent, all-season atrium and nearly double the seating capacity.

Donors could pitch in anywhere from $10 to $2,500 and receive, in turn, an equally valued meal, company clothing or permanent recognition on a wall. A $100 donation, for example, earned dinner for two from a featured menu created by chef Mark Gray and the donor’s signature displayed on the wall of supporters.

They were growing and needed business expansion. On their blog they state donations are still being accepted and the renovations are on track.

What’s Illegal About Crowd Funding?

People say you can not do general solicitation.
If you are trying to sell securities by general solicitation, then you are doing something which
violates SEC rules.

SEC RULES

One of the conditions of Rule 506 is the ban on general solicitation. The ban on general solicitation is described in accompanying Rule 502 and provides:

Limitation on manner of offering. Except as provided in Rule 504(b)(1), neither the issuer nor any person acting on its behalf shall offer or sell the securities by any form of general solicitation or general advertising, including, but not limited to, the following:

Any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio; and
Any seminar or meeting whose attendees have been invited by any general solicitation or general advertising;

Your Crowd funding can not be about offering shares of your business. Talk with your attorney on how
to structure it.

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