Crowd-funding in the kitchen: non-traditional financing and funding for your food-related project Small business owners have found it difficult to access tradition financing from banks over the past few years. An increasing number of them, including chefs and value added producers, have turned toward crowd funding to put together the capital necessary to start or expand their businesses. From food trucks to fine dining, a variety of different models have been successfully employed. What’s worked? What’s flopped? We’ll discuss with our colleagues who have gotten help from the crowd to fund their projects. Whether by Kickstarter or pre-sale of discounted goods or gift cards, crowd funding builds on the familiar concept of Community Supported Agriculture (CSA) and takes it to the next level. Moderated by Gregory Heller, Seattle Chefs Collaborative. Presenters include Tim Crosby and Arno Hesse, both of Slow Money, chef Thierry Rautureau of Luc and Rover’s restaurants, and Jared Stoneberger of the Lark Cookbook Project.

1. Crowd Funding In The
Kitchen
Gregory Heller, Seattle Chefs Collaborative
Jared Stoneberg, Lark Cookbook
Thierry Rautureau, Rovers & Luc
Tim Crosby, SlowMoney NW
Arno Hesse, SlowMoney NorCal
HungrySeattle.com
#NatlSum12
Twitter @HungrySeattle
Monday, October 1, 12

2. Who’s In The Room?
• Producer?
• Restaurant?
• Chef?
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3. Who’s In The Room?
• Have you ever backed a project on:
• Kickstarter?
• Indie GoGo?
• Other Mechanism?
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4. Funding Sites
Borrowing Sites
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5. Food Investments
Chefs Collaborative National Summit
Oct 1, 2012
Tim Crosby
Director, Slow Money NW
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6. Since 2009
170 enterprises, $20 Million
14 Local Chapters
7 businesses secured investments of just
under $4 million
Direct investments of loans, equity, lease-to-
own equipment purchases
Business development and technical
assistance
34 WA and OR based enterprises received
business development / technical assistance,
connections
Farmer Reserve Fund
Monday, October 1, 12

7. Who is an investor?
• Accredited Investors
– Angels, VCs; Banks, Credit Unions, Foundations
– A bank, insurance company, registered investment company, business development company, or
small business investment company;
– An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if
a bank, insurance company, or registered investment adviser makes the investment decisions, or
if the plan has total assets in excess of $5 million;
– A charitable organization, corporation, or partnership with assets exceeding $5 million;
– A director, executive officer, or general partner of the company selling the securities;
– A business in which all the equity owners are accredited investors;
– A natural person who has individual net worth, or joint net worth with the person’s spouse,
that exceeds $1 million at the time of the purchase, excluding the value of the primary
residence of such person;
– A natural person with income exceeding $200,000 in each of the two most recent years or
joint income with a spouse exceeding $300,000 for those years and a reasonable
expectation of the same income level in the current year; or
– A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose
purchases a sophisticated person makes.
Source: www.sec.gov/answers/accred.htm
Monday, October 1, 12

8. Who is an investor?
• Non Accredited Investors
– Wall Street, Mutual Funds, Credit Unions, IRAs
– Emerging Community Capital efforts
• Crowdfunding
• Investment Clubs
– Regulated vehicle; pools funds
• Local Investment Opportunity Networks
– Non-regulated; networks ‘friends’
– Customers
– Friends, Families (and Fools)
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9. What is an Investment?
Credit Friends, Gifts, Purchase,
CSA Pre-Pay
Cards Family Grants Trade
Social Return (SROI)
Bootstrap Market
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10. Capital Continuum
Credit Friends, Gifts, Purchase,
CSA Pre-Pay
Cards Family Grants Trade
Social Return (SROI)
Bootstrap Market
Sub Revenue/ Convertible
Debt Equity
Debt Royalty Debt
Financial Return (ROI)
Lower risk Higher risk
Lower reward Higher reward
Monday, October 1, 12

11. Capital Continuum
| Personal | | Customers |
Credit Friends, Gifts, Purchase,
CSA Pre-Pay
Cards Family Grants Trade
Social Return (SROI)
Bootstrap Market
| Accreds, Angels |
| Investment Clubs, LIONs | | VCs |
Sub Revenue/ Convertible
Debt Equity
Debt Royalty Debt
Financial Return (ROI)
Lower risk Higher risk
Lower reward Higher reward
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12. Crowdfunding
Credit Friends, Gifts, Purchase,
CSA Pre-Pay
Cards Family Grants Trade
Crowdfunding space
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13. Crowdfunding Regulation
Jumpstart Our Business Startups Act
(JOBS Act)
6 bills in one act, main parts due next year
- Don’t hold your breath
Of Interest:
1. Regulated crowdfunding
1. $10,000 or 10% of income per investor, whichever is less
2. Raise number of shareholders before forced to go
public
3. Advertise to solicit investors
- Due now
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14. Other Non-Bank Options
Direct Public Offerings
– Small Company Offering Registration (SCOR)
• All except Alabama (under consideration),
Delaware, District of Columbia (has no securities
laws), Florida, Hawaii, and Nebraska.
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15. Farmer Reserve Fund
Credit
Union
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16. Farmer Reserve Fund
Tech
Assistance
Program
Risk SROI
Credit
Union
Reduced LeveragedDo
nation
Impact Investor
Chef
20% default rate for first round
$10K deposit creates $50K loan(s)
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17. Direct Option
Risk
Credit Chef
Union Restaurant
Reduced
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18. Thank you
Tim Crosby
timcrosby@comcast.net
slowmoneynw.org
206.300.9860
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19. Thierry Rautureau
• Funded Luc through pre-sale to ~220
customers
http://TheChefInTheHat.com
Twitter: @thechefinthehat
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20. Some Numbers
2361 Projects
177 Live
40% Success Rate
$9.64 Million Raised
Over 250 “Food” Projects
(no specific stats available)
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21. All Projects
$9.64 Million
Successfully
Raised for
Food
Projects
#8
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22. Successful Projects
>50% Of
Successful Food
Projects Raise
between $1k
and $10k
#7
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23. Unsuccessful Projects
The Ones
That Fail, Fail
Big
(<20% of
funding goal)
#9
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24. Jared Stoneberg
LarkCookbook.com
@LarkCookbook
LarkSeattle.com
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25. Lark - Chef John Sundstrom
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30. larkcookbook.com
@larkcookbook
larkseattle.com
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32. I was told
there would be a path to
CROWDFUNDING
somewhere around here
2
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33. Confidential © Clearbon 2012 3
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34. Confidential © Clearbon 2012 4
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35. Confidential © Clearbon 2012 5
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36. Confidential © Clearbon 2012 6
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37. Confidential © Clearbon 2012 7
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38. 8
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40. 10
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41. Confidential © Clearbon 2012 11
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42. Confidential © Clearbon 2012 12
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43. Resources
• KickStarter.com Blog
• FinanceForFood.com forthcoming book:
Raising Dough
• SlowMoney.org
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44. http://HungrySeattle.com
Twitter @HungrySeattle
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