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New Restaurant Crowdfunding Site Offers Investors a Portion of the Profits

EquityEats launched on Monday.

Watch out Kickstarter, there's a brand new crowdfunding platform for restaurants that offers a different kind of perk: A portion of the profitsAccording to Washington City Paper, EquityEats — which launched Monday — connects "wannabe restaurateurs and investors," however, unlike other crowdfunding sites, investors receive an equity stake alongside typical investment-based perks like party invites and future discounts. Interestingly, the company also provides bookkeeping and other "business support" services for the restaurants.

EquityEats notes on its website that their platform allows restaurateurs to "raise the significant capital needed to start a new food and beverage service business" from a "wide range of people in the local are" who really believe in the concept. They emphasize that the site is focused solely on restaurants and bars because it is the type of business that is "perfectly positioned to benefit from equity crowdfunding."

To help ensure that investments are as low-risk as possible, EquityEats requires hopeful restaurateurs to have a "well thought out" business plan before approving them. The company also helps prospective business owners "gain access to a network of resources" that aren't typically available to small restaurants. Currently, the site has four restaurants in the Washington, D.C. area open for investments, one of which is seeking nearly one million dollars.

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