What is an Online Public Offering?
An online public offering (OPO) is a method in which a company can raise funds directly from the public or commonly called investment crowdfunding. An OPO allows a company such as BWS to offer an investment opportunity to any and all potential investors. An OPO is the only option that allows BWS to publicly advertise an investment opportunity to all investors both accredited and non-accredited. An OPO allows BWS to leverage the power of investment crowdfunding and connect with all investors, to provide an investment return.
Why choose an OPO?
After deliberation and many conversations, BWS believes that an OPO is the best investment option. Conventional bank financing is inherently challenging and difficult for a startup venture and was not an option. Angel investment or venture capital is possible and BWS believes that the high rate of returns generally sought with this option is not consistent with the holistic business vision and operating as a benefit corporation.
BWS desires to
- Pay interest to the people of PA and not a bank
- Provide a local investment opportunity that is an alternative to Wall Street
- Provide an opportunity to keep the money in PA and create local economic impact
- Provide a local investment option that allows for a more diverse investment portfolio
- Build a community of supporters before opening the doors
Why debt instead of equity?
BWS contemplated this for a significant time before deciding on debt financing. As a small business it is considerably easier to manage the financial aspects with debt financing. Equity financing and offering stock would have generated significant internal recordkeeping and financial implications that would be very challenging for a small business. BWS felt that debt financing is easier to explain.
What if I need an early payback?
BWS understands that life happens and individual situations change. Therefore BWS has established an option to request early principal payback after two years. BWS has limited these requests to $50,000 annually to maintain a healthy cash flow position. This allows for those founders to receive an early exit if the capital is required to work elsewhere.
Is it risky?
Risk is inherent in every investment and this is no different as BWS is offering notes that are unsecured against bankruptcy.
An investment in BWS diversifies your investment portfolio, builds local economic resilience, strengthens your sense of place in community, has a positive economic impact on PA, and supports an economy of local sustainable agriculture. All investments are based on risk and with most investments you are placing your trust in a faceless corporation. This is much more than a simple investment; it is about buying into the BWS vision, philosophy, and ideal of creating a better world. At BWS, you can visit anytime and discuss your investment. Which choice will you make?
Join BWS as a founder and help make the world a better place one toast at a time. Cheers!