An Equity Partner in exchange for Labor and Materials?
POSTED BY Allenjkorenstein ON Fri, 09/04/2015 - 22:23

Hi CAS, So Camino Brewing has this opportunity to take on an equity partner for the build out of our first 15 bbl brewery and taproom in San Jose, CA. We are currently contract brewing 30 bbls per month and beginning to make plans for the buildout of our own facility and taproom. A local builder with brewery/taproom experience, a guy we know and trust to do a good job, has offered to exchange his labor and materials (450K worth) for brand equity. This blows us away and we would like to figure out how to make this work. The challenge is we don't really know how to value our company since we are so young, and don't think the value would be very high at this stage anyway. We don't want to give away more than 50% of the equity, but we still need to raise close to an additional 500K. (We may get some loans and maybe something from an Indie GoGo campaign, but that is yet to be known.) Any ideas about how we might structure this deal would be much appreciated? CHEERS! Allen