Transcript for Burrito Bonds Raises $1 Million in 1 Week
I -- another thing I'm always looking for. A good -- And this fast casual Mexican restaurant is -- got a new recipe to raise money the founders of -- -- created the world's first ever garrido -- It's raised over a million dollars from crowd funding in just one week. And I want to bring in the brains behind the bond Eric part of her he is co-founder of the Mexican restaurant to lingo in London it's so nice to have you with us -- -- Hi Rebecca greetings from London nice to be here well I have to say the second ice your video Mitchell like go video I was up I I. Personally I love burritos. And I was fascinated by this idea that. You would crowd -- crowd fund a bond. That not only pays people an 8% coupon but also pays them in burritos. Absolutely. But he added that the inspiration for doing that. Game it is senator from day one with how we found that the company and that we we knew right from the outset that there was no chance we could be. A lot of our competition you know given that we can only be -- with eight to Tulsa sites. Yeah you've got it unless we unless we had a really tight bond with you know the people who matter most -- -- and down. And if -- going to any two lingo today you'll find our guests -- -- but still have you know the very same mold while members cell number that I used today. So that was like Gary thoughts in the beginning and when we started to raise equity -- and the company. About 90% of those funds came from people who frequent in our restaurants -- fans -- wanted to support our growth so when the time came to transition to debt. For us it is just a natural extension of what we are already doing just go out the masses. Care -- you know the plan is and now allow them to kind of participate in the success. A lot of startups are gonna look at what you're doing and think it sounds interesting but there's so much. Analytical work that goes into creating a -- there's a lot of finance and background how did you. First all -- did you team with and how did you set this up and structuring it so that it wouldn't be harmful to your business. -- well I -- first of all you know it's mean it's -- mind. My my business partner and outlet started to it than if he's to guys the -- degree in mathematics. 33 in the financial arm of the team. Traffic came down to finding the right partners such as he said it's incredibly difficult -- to launch of bombs a lot of analytics -- behind it. -- and that's exactly what makes it you know pretty cost prohibitive for the majority of companies. We'll be decided to do it you know we had the benefit of partnering with -- Q -- we -- -- bond with. And that's really their main USP is that they take a lot of the complications of the process they had the approval from the financial content authority here in the UK. And then you know -- it -- -- -- together with then you can kind of yeah. Get get through all of that regulation. In the most kind of cost effective way possible so that. We can also kind of participate in what normally is only open to say medium size or bigger companies in terms -- a fund -- -- -- OK so you're paying an 8% coupon at the annual and they giving away a burrito. A week to everybody who invests in this the minimum investment is 500 pounds so that's about 850 dollars. What's the goal what -- you gonna do with this money and right now here in London are you coming to the US anytime soon. Well. The defined -- raising with this bond will help us open up the next three restaurants in London. And as he said everyone who invests is entitled to a couple of free meals with their investment. Those that invest 101000 pounds which is roughly equivalent to 171000. Dollars -- more. Also -- get what we caught -- black card which entitles -- to a free -- per week. I'm right now as. You know -- it will -- with with the current regulation. Our ability to raise these funds is strictly limited to. People in the UK so -- I think our focus for now -- just be expanding through Central London. What is your number one piece of advice to anybody out there. Who wants to try and do what you've got Eric. I think it it's all about branding. When I think of the world's. -- -- biggest brands great companies I can always sum up their brand and a single word. Nike screens competition. Disney screened happiness and for -- anger that one we're distillation is vibrancy. And vibrancy flows into everything we do from our our food. To our people you know we have an audition element to our interviews. On today in that the restaurants themselves they'll screen color in the effective all of that. Is that it's a place that -- -- a few days it's more than just you know a restaurant serving in great. Burritos -- -- salad so my advice would be really think long and hard about how you can sum up your business and what you're offering and a single word. And then fully commit everything and align your entire company. Around supporting whatever that campaign is. Eric thank you so much for joining us the company is chilling though next time I am in London I will definitely be stopping by. Thanks a --
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