Peli Peli Austin closed this week on NextSeed. The crowdfunding offer is the first restaurant to raise $1 million on the platform. According to the campaign page, the Reg CF offer had the support of 410 investors.
Peli Peli is an eight year old South African fusion restaurant that has a series of locations in Houston, Texas. The crowdfunding offer sought funding on NextSeed to expand operations into Austin – a very popular university and startup community. The new location will be in downtown Austin’s well known 2nd Street District.
Peli Peli has some pretty solid reviews too. A quick trip to Yelp, TripAdvisor etc is pretty encouraging. In fact, Peli Peli is listed as one of the top restaurants in Houston (number 8 when I checked). An expansion into Austin really makes sense.
The offer on NextSeed is for a revenue share over a term of up to 60 months. Investors expect to receive 1.5X their original investment (IE you invest $10,000 you will get $15,000 no later than 5 years time, perhaps sooner). The loan was secured with a blanket lien on assets of the business. Investors also received some perks. If you invested $5,000 you never have to wait in line, ever again, plus some discounts on food.
NextSeed is debt based crowdfunding platform that currently does not offer equity investments. For a business seeking growth capital NextSeed may provide a preferable option to going to the bank. Plus, you end up having a core group of brand ambassadors that are very committed to your success.
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