Asked by Anonymous
Asked on 22 Aug 2019
Hi, I want to start my own cafe business and I have already done my research and homework. However, I am lacking funds and I understand that close to no banks will provide loans to a fresh business with no revenue at all. Are there any other alternatives that I can get loans from?
I also know about crowdfunding and angel investors, but I don't think they would invest in the F&B industry. I need around 150k loan and only have 50k now.
Any ideas and advice would be much appreciated.
If you have a good pitch, Venture Capitalist might want to invest.
But the number 1 question will always be, why should they invest in you, whereby they have other opportunities.
What makes you so different from the rest, that your cafe can succeed and not the others?
Coming from the perspective of someone 10 years in VC, I would say very honestly that it is.. PRETTY RARE for a VC looking to invest in high-tech, scalable businesses to put money into a cafe.
Unless you plan to be something like a Luckin Coffee - and are able to demonstrate economies of scale or an interesting way of delivering a coffee experience to customers (preferably powered via tech). VCs HAVE invested in F&B businesses. For example, see Teabox. They are an online direct-to-consumer tea brand.
At this stage where you are at a stage even before pre-revenue, I would definitely look at angel investors who have experience in F&B. Find those that are able to bring contacts in the space, and other domain knowledge around rentals, customer service, supply chain, vendors etc.