Crowdfunding can be a powerful growth tool for restaurants, bars, brands, and businesses in hospitality. It can help a company raise capital while building a passionate community of customers.
Indeed, Invivo Co-Founder and Winemaker Tim Lightbourne believes just that, as his company has found significant success with crowdfunding on several occasions. The business is one of New Zealand’s leading wine producers, founded in 2008 by Lightbourne and Co-Founder Rob Cameron.
Invivo’s mission is to “bring people together so great things can happen,” and the business has been described as New Zealand’s most innovative winery. The company, which launched the Invivo X, SJP wine collection with Sarah Jessica Parker in 2019, has used crowdfunding to help scale their business globally, including in the United States.
“At Invivo, we’ve crowdfunded three times, growing our network to over 800 shareholders across New Zealand, and even in the USA and U.K.,” said Lightbourne, who’s company first crowdfunded in 2015 when equity crowdfunding was approved in New Zealand.
“We took inspiration from the U.K. beer industry, who were breaking the traditional playbook with this approach,” said Lightbourne. “After a national PR campaign, we went live – and were blown away by the support and interest. We exceeded our $1 million goal within 12 hours, even making national news. Crowdfunding can create a strong narrative and long-term talkability, if it aligns with your business values. Plus, there’s the long-term advocacy you get from your shareholders.”
As a word of caution, Lightbourne noted that crowdfunding is not something to be entered into lightly. He said it requires careful planning, tangible value, clear communication and transparency with backers, and the ability to deliver on promises.
What Is Crowdfunding?
For those who are unfamiliar with it, “Crowdfunding involves raising small amounts of money from a large number of individuals to finance a new business venture,” according to Investopedia. “It leverages the wide reach of social media and crowdfunding websites to connect investors and entrepreneurs, potentially increasing entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives, and venture capitalists.”
David Hersh, co-founder and co-owner of Long Island, N.Y.-based Rooted Hospitality Group—which operates numerous restaurants, including Rumba, Flora, and Cowfish—said crowdfunding is a way for people to invest in a concept they believe in. For the business, it’s a way to generate capital by opening the door to a broader group of potential investors, whether it’s helping someone bring their dream restaurant to life or supporting a growing brand’s next expansion.
While Hersh hasn’t personally used traditional crowdfunding platforms, he’s raised capital through private investors for all of his restaurants, and he said many of the same principles apply.
“[Crowdfunding] allows operators to build a community of backers who are not only financially invested but often emotionally invested as well, which can lead to long-term brand loyalty,” said Hersh, who added that it can be an effective route for certain concepts, especially those with a strong following or community support.
Crowdfunding: a Chance for Customers to “Feel Truly Invested” in a Business
According to David Kaplan—the CEO of Gin & Luck, a cocktail anchored hospitality group, and the co-founder of Death & Co., a cocktail institution—beyond raising capital, crowdfunding builds deeper connections with customers, which is a significant benefit.
“It gives people a chance to feel truly invested in what you're building, both financially and emotionally,” shared Kaplan. “In an industry that’s all about human connection, giving your community a real stake in your success can be a huge advantage. It’s a way to strengthen loyalty and create advocates who genuinely want to see you thrive. There's also potential for marketing benefit if done correctly, as well as business development leads arising from putting your company intentions out there.”
Kaplan said they’ve gone through two separate Reg CF / Reg D side-by-side crowdfunding campaigns, one previous Reg A crowdfunding campaign, and they’re currently in an $8 million Reg A raise. “It’s a lot of work—a lot—but it’s absolutely worth it,” he said. “We’ve been able to raise meaningful growth capital while bringing thousands of people into our community in a deeper way. It’s forced us to really sharpen how we tell our story and think about our brand from the outside looking in. I’d do it again, without hesitation, but only with the right resources and planning in place."
Téa Ivanovic, co-founder and chief operating officer of Immigrant Food, based in Washington, D.C., said crowdfunding can be a game-changer for businesses in the hospitality space, especially for independent operators or mission-driven brands, like theirs. Immigrant Food is a social enterprise that fuses gastronomy and social advocacy, and it operates four restaurant locations in the Washington D.C. area.
“Unlike traditional financing—which often favors chains or groups with deep-pocketed backers—crowdfunding democratizes access to capital,” said Ivanovic. “It allows your most loyal guests, team members, and supporters to become true stakeholders in your vision.”
When Immigrant Food launched its 2024 crowdfunding campaign with funding portal StartEngine, they were blown away by the response. “People weren’t just investing in a business – they were investing in a movement,” said Ivanovic. "For us at Immigrant Food, it became a powerful way to deepen our community ties and let people participate in our growth with as little as $500. Every day, we would check the backend portal to see who invested, and we were just blown away by the number of loyal guests and staff members who wanted to participate.”
Immigrant Food raised around $900,000 on StartEngine and it was “one of the most exciting and humbling experiences” since the company opening its first restaurant in 2019, according to Ivanovic.
“Seeing over a thousand people invest in Immigrant Food—some with as little as $500—was incredibly powerful,” said Ivanovic. “These weren’t anonymous donors. They were our guests, employees, friends, and fans who believe in what we’re building. It wasn’t easy – it required hustle, coordination, and a lot of outreach – but it was absolutely worth it. Not only did we raise capital, we also created an army of brand advocates who now feel like part of our mission. That’s priceless.”
Crowdfunding Requires “Responsibility, Clarity, and a Long-Term Mindset”
When it comes to crowdfunding, one of the most important things is to operate with integrity, per Hersh of Rooted Hospitality Group. “Be completely transparent with your numbers, your expectations, and your risks,” he said. “Structure your deals so investors are taken care of first—let them recoup their investment before the operator takes a profit. Always budget for a conservative scenario and aim to exceed expectations in both financial results and communication.”
Hersh suggested that businesses hire a strong attorney at the outset, to help navigate the regulatory side of fundraising and ensure everything is handled properly. “Crowdfunding, like private capital raising, requires responsibility, clarity, and a long-term mindset,” he said. “If you handle it right, you build lasting relationships and a network that will support your growth for years.”
Kaplan, of Gin & Luck and Death & Co., stressed the biggest thing to know about crowdfunding is that it’s not easy money. “It takes a ton of planning, storytelling, and communication,” he said. “It’s also costly to prepare to go live, and then to fund the marketing through the campaign.”
Tips for Hospitality Businesses That Are Considering a Crowdfunding Effort
For business owners/operators who are thinking about the crowdfunding opportunity, Kaplan offered a few tips:
Start Early: “You need to build momentum before you launch,” shared Kaplan. “Some of the more successful campaigns are already halfway raised by the time they go live. The better your kick-off is, with money already invested or ready to invest when you go live, the better your campaign will go.”
Be Clear About What You’re Offering: Whether it’s financial upside, brand perks, or just the chance to be part of something special, Kaplan said businesses need to articulate all the reasons someone should care.
Treat It Like a Full Marketing Campaign: “Posting once or twice on social media isn’t going to cut it,” said Kaplan. “You need a real strategy—email, social, PR, partnerships, as well as robust advertising—to bring it to life. Your marketing campaign should bring your business/brand to life and live to your company values/experience or promise.”
Stay Professional and Transparent: Kaplan said that with crowdfunding, people are trusting a business with their money, so owners and operators need to communicate openly and often—before, during, and after the raise. “Be accessible,” he advised. “Answer every email, DM [direct message], or potential lead. Many go nowhere, while some random ones can turn into a six or seven figure investment.”
Consider Marketing & PR When Launching a Crowdfunding Effort
Ivanovic, of Immigrant Food, explained that crowdfunding is essentially a marketing campaign, so businesses that launch one must think in those terms. “It’s a chance to amplify your brand, tell your story, and make headlines,” she said. “We used the campaign to generate great press, increase our email and social lists, and boost customer engagement – even among those who didn’t invest.”
Ivanovic said they found that traditional PR and digital marketing worked best when aligned during Immigrant Food’s campaign. “We timed media features around campaign milestones, used social proof—like total raised or number of investors—to build momentum, and created a sense of urgency with countdowns and stretch goals,” she shared. “My advice: Treat this like a launch. Set a calendar. Use every channel. And be consistent in your messaging.”
Owners and operators should think of their crowdfunding marketing effort like opening a new restaurant, suggested Ivanovic. “You don’t just unlock the doors and hope people show up,” she said. “You build buzz, connect with your audience, and get people excited. Also: transparency and storytelling matter. People want to know your ‘why.’ Why do you exist? Why now? Why should they care? And then, what will their investment help you achieve? We invested a lot of time crafting our story and making sure the numbers matched the mission.”
Ivanovic suggested a few tactical tips for marketing a crowdfunding effort, including investing in a great video, building an email list, engaging your audience, creating perks or early-bird incentives, and preparing your team. “Crowdfunding is like a mini-campaign that touches everything—marketing, ops, finance, even HR,” she said.
Kaplan noted that crowdfunding is as much about brand storytelling as it is about raising capital. “It’s a major opportunity to tell people who you are, what you stand for, and why they should want to be part of it,” he said. It’s also a moment to create buzz beyond your existing audience—through PR, partnerships, events, anything that gets people talking. The best campaigns make people feel like they’re joining a movement, not just investing in a business.”
Hersh pointed out that the story a business tells around its concept is important, but it needs to be grounded in truth and supported by a thoughtful business plan.
“Avoid the temptation to oversell or inflate the vision just to gain attention,” said Hersh. “Crowdfunding campaigns that succeed typically do so because they are authentic, well-prepared, and clearly articulated. Use PR to highlight your passion, your team, your values, and your strategy – but always remain focused on delivery. At the end of the day, it’s not about hype – it’s about building something that lasts and being able to back up every promise you make.”
Crowdfunding Mistakes to Avoid: Don’t “Set It and Forget It”
Ivanovic revealed that one of the biggest mistakes a business can make is underestimating the amount of time and energy it takes to implement a crowdfunding campaign.
“You can’t just ‘set it and forget it,’” said Ivanovic. You need a strategy and a team to execute it. Another mistake is being too vague or optimistic. Investors want ambition, yes—but they also want realism and detail. Show your plan. Show how the money will be used. Lastly, don’t ignore compliance. If you’re doing an equity raise, like we did, there are SEC [U.S. Security & Exchange Commission] rules involved. Work with experts who’ve been through it before, and plan ahead for those costs.”
Hersh said one of the biggest mistakes is approaching crowdfunding with a short-term mentality or treating it as easy access to capital. “In hospitality, margins are tight and success isn’t guaranteed,” he explained. “Overpromising on returns, underestimating the capital needed, or being vague about the use of funds can lead to significant trust issues later on. Additionally, failing to maintain strong communication with your backers post-fundraising is a missed opportunity. Whether you’re reporting wins or setbacks, consistent and honest communication is what builds credibility. Crowdfunding creates a wide circle of stakeholders—be prepared to manage that relationship with the same care you give your guests and team.”
Overall, when launching a crowdfunding campaign, set realistic goals, instructed Ivanovic. “We truly didn't expect to get this close to $1 million,” she said. “It takes a lot of small checks to get to this number, so be prepared for that.”
Aaron Kiel is an award-winning journalist and public relations professional in Raleigh, N.C. He’s worked in the beverage, tea, and coffee industries for two decades, as well as hospitality and technology. He’s a journalist at heart, but he also wears a PR and communications hat through his consultancy, ak PR Group. Aaron is a contributing writer/reporter for Questex’s Bar & Restaurant News and he’s a past editor of Questex’s World Tea News. In 2023, he was a finalist and honorable mention in the “Folio: Eddie & Ozzie Awards” for “Range of Work by a Single Author – B2B” for World Tea News, and in 2024, he won two awards for his work with Bar & Restaurant News, including a Gold Northeast Region Award in the American Society of Business Publication Editors’ (ASBPE) Azbee Awards under the “Diversity, Equity & Inclusion” category, and a “Folio: Eddie & Ozzie Award” in the B2B article category for “Culture & Community.” He also received a 2024/2025 ASBPE Diversity Fellowship Award, which supports and recognizes diversity in the field of B2B journalism. Connect with him on Instagram: @adventurer_explorer or visit akprgroup.com.
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