Equity crowdfunding source of innovation, capital for startups

 

Last fall, shortly after his business turned four, George Christakos decided it was time to expand. He wanted to boost the seating capacity of Brooklyn Warehouse, the north-end Halifax restaurant he co-owns with his father, Leo. Renovation plan in hand, the pair visited their bank to seek a loan. The request was rejected.

“They didn’t believe in us,” Mr. Christakos recalled. “So we decided to go to those who do believe in us — our regular customers.”

Putting their frustration aside, the father-son duo launched a crowdfunding campaign — a capital-raising technique that draws small contributions from a large number of people. (Mr. Christakos first heard about the concept from a friend, who produced a movie with $5,000 raised through Kickstarter, an online crowd-funding platform.)

Read More at FinancialPost

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