Discover how growing Houston businesses, restaurants, and entertainment destinations are inviting locals to participate in their growth and enjoy the perks of being an investor.
The power of the crowd has created a new normal. Did anyone imagine that, one day, we’d be fighting for the right to ride in a stranger’s car? Or that you’d hand over your apartment keys to someone you’ve only met online?
These days, those small personal interactions have not just become natural – we’ve grown to rely on them in our technology-filled lives. We’re connecting with people and sharing experiences in new ways.
Now, small businesses are also connecting with the crowd on a deeper level than just doing business. With a new twist on crowdfunding, businesses are inviting people to participate in their financial growth, making real investments and not just donations.
Success for Peli Peli
When Houston restaurant Peli Peli opened its first location in 2009, South African food was completely new to the Houston food scene. They over-delivered on the customer experience and slowly worked their way into the hearts and stomachs of local diners across the city. They opened their second location in the Galleria by 2015, quickly becoming one of the hottest spots in the city.
But when it came time to expand, the team decided to try something that not only got them the funds they needed, but also created advocates to help spread the word. Peli Peli raised $385,000 for its future expansion through this new investment concept, giving patrons an opportunity to invest in a business they could get excited about. Shortly after, they signed a new lease in Katy and are now scheduled to launch their new location later this year.
Houston’s Crowdfunding Platform
NextSeed is a new crowdfunding platform that makes it easy to invest funds in private businesses and start seeing financial returns. Crowdfunding small businesses allows consumers to invest in the places they already love or in new concepts they want to see in their area. NextSeed’s Texas affiliate has facilitated more than $1.2 million in small business investments within Texas over the past year (including Peli Peli). And now, NextSeed has launched nationally under brand new federal laws, with plans to democratize investing across the country.
The team behind celebrated local hot spots Tout Suite and Sweet have been growing their café and dessert concept. Now, the duo of Sandy Le Tran and Anne Le are expanding into the co-working movement, launching The Co-Op HTX. The new space is opening next door to their heavily trafficked Tout Suite location in East Downtown Houston. With their NextSeed offering, they now have an open invitation out to anyone who wants to be involved in their growth.
How It Works
Each investment varies, but investors could start seeing monthly payments coming from their investments in as little as a few months. Investing in the community is now a real alternative to savings accounts and stocks. Peli Peli has been making monthly payments to its 128 investors with a 17% annual interest rate. Investors also enjoy perks by using the bonus rewards they received as investors in Peli Peli, including VIP access to events and discounts on regular visits. Many have brought friends to try out the new concept.
How You Can Invest
So who can invest? Anyone, now. Due to recent changes in the law, people of all income levels can come together and support business owners they believe in. NextSeed carefully reviews every deal before presenting an opportunity to investors on its website. Investors can get information about each deal and choose which business they want to connect with and help grow.
Local Houston business owners Juan Cao, Mazen Baltagi and Bien Tran launched a campaign on NextSeed’s Texas platform earlier this year for their new business, Chapman & Kirby, in EaDo. The team raised $440,800 from investors to launch their new gastrolounge and event venue.
Their investors didn’t need deep pockets to contribute – investments started at $100. By offering smaller portions of the pie, the team made it easier for everyone to get a piece. And giving investors VIP perks like gift cards and party invitations also allowed them to connect with the community that supported their various restaurants, bars and venues over the years.
Crowdfunding in the Community
For NextSeed co-founder and CTO Bob Dunton, the secret to the Chapman & Kirby team’s success and satisfaction with crowdfunding is the community.
Dunton says, “Instead of just borrowing from an institution that only cares about getting a monthly payment, they were able to invite people from the community to invest and feel a bond and commitment to the business and its success.”
Although NextSeed is new, community financing harks back to a more down-to-earth approach to building a business that was much more common before big banks took over. Now, Houstonians are empowered to invest a range of dollar amounts to boost local bars, restaurants, salons, and other places they are passionate about.
For more information on this new crowdfunding platform, and to see which of your favorite businesses have active campaigns, visit NextSeed.
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Any views expressed in this article reflect the personal views of the author only for discussion purposes and should not be viewed as investment advice or recommendation, and does not constitute any legal or tax advice with respect to any securities.
This article was sponsored by NextSeed US LLC. Per our advertising and sponsorship policy, we only accept sponsored content from organizations that meet our editorial standards and truly present a valuable activity, event, resource or destination for residents and visitors across the greater Houston area. Advertising revenue helps support 365 Things to Do in Houston, and our contributors, allowing us to expand our coverage of activities and events around the Houston area. Click here to learn about promoting your event or business.