Crowdfunding still works for the right project and when done the right way. Fresno-based Full Circle Brewing Co., is trying to secure $800,000 of capital as we speak, using Breakaway Funding LLC, a Sausalito-based crowdfunding firm, and Fresno First Bank (FFB), a community financial institution serving Central California. They are more than three-fourths to their goal, which is projected to increase their productivity by tenfold.
The hybrid funding vehicle (Community Capital Marketplace/CCM) pioneered by Breakaway, included a first tranche crowdfunded equity raise of $124,000 and an additional $685,000 in traditional SBA debt financing from FFB’s crowdfunding loan program that is part of an agreement signed with Breakaway last year. This was signed by Full Circle’s CEO Arthur Moye.
Working with Breakaway and Fresno First, Moye was able to access funds from a Fresno First loan portfolio commitment available to customers who are working with Breakaway Funding to reach their capitalization or financing needs.
The campaign is still ongoing and located right here.
“We are humbled by the community’s response, happy to welcome our new investors, and ready to put the capital to workm” says CEO Arthur Moye. “We see a bright future for Full Circle, downtown Fresno, and Chinatown. Truthfully our success would not be possible without the support of the City of Fresno, our investors, and amazing staff.”
The funds will be used to purchase new brewing equipment to help Full Circle meet its craft brew demand, make other enhancements to its building to accommodate increased patron occupancy, and to can and distribute craft beer to retailers throughout California. With these additions, the brewery will also be looking to add a number of varied jobs.
“We are extremely pleased to have been able to support this project,” said Breakaway founder/managing partner Kim Kaselionis. “Full Circle is a thriving company in a high growth field with a loyal following, but, as with many young companies, traditional financing was not available from the outset. We were able to leverage CCM, our proprietary crowdfunding hybrid approach, with Title III (Regulation CF) of the JOBS Act of 2012 to make this happen.”
Beertainment, coined by Full Circle Brewing, has been an important business approach. Full Circle has hosted many well-known local bands including Patrick Conterez, John Clifton, and Simple Sensation. The venue also saw worldwide headliners such as E-40, Bone Thugs-N-Harmony, P.O.D., Alien Ant Farm, and Puddle of Mudd. Last year, the brewery hosted over 250 events. With the collaboration of many new, notable, and local promoters, Full Circle aims to be a prime destination for downtown entertainment.
When the Breakaway/FFB agreement was announced, the bank’s CEO/president Steve Miller said, “We are excited about this working relationship. It breaks new ground in how local businesses and entrepreneurs can take advantage of both equity crowdfunding and work with established financial institutions to meet their ultimate funding needs.”