Invest in your Co-op!
Flying Bike Member Investment Campaign!
Member investment programs are a key component of starting most cooperatives, including grocery stores or bulk buying clubs, and the only operational cooperative brewery in the nation, Black Star (Austin, TX). After months of planning, we are moving into the next chapter of MEMBER DRIVEN BEER. Please join us in making this dream a reality by investing in your co-op. Our goal is to raise $300,000+ by August 31st, 2014. (Update: we have reached our minimum of $200,000 by this date and elected to continue to raise money up to the $300,000 through the fall.) Update #2 – we have EXCEEDED our goal and are headed for our $350,000 stretch goal! This is the limit of our campaign.
This money will be allocated to funding a lease, purchasing brewery equipment and building a taproom. Details are available in the business plan attached below.
As member-owners, it is important for as many of us to be involved in this campaign as possible. This demonstrates to potential landlords that our membership believes in the idea of cooperative beer, is invested in Flying Bike, and our business plan is solid and will lead to success.The co-op’s goal is to pay back your investment through the repurchase of your Preferred Stock, plus dividends on that Preferred Stock, once the brewery is profitable.
(What?!? You’re not a member, yet? Click HERE to join!)
This page contains documents that outline the plan that the Board of Directors has put together, with your help. This explains what we will do with the funds we raise as well as the details of the fundraising campaign. Please take some time to read and understand the investment information carefully, and then join us in investing in our brewery for all membership to enjoy!
Pledged to date:
STRETCH Funding Goal:
Here’s the letter that was sent to all member-owners introducing this investment campaign
|Flying Bike Co-op Brewery Investment FAQ’s
Contains commonly asked questions about this investment campaign.
|What can we buy?
Wondering what your investment at different levels can buy? Check it out!
Look here if you’d like to see the master plan around how we intend to get Flying Bike off the ground
Check out the Exlcusive additional recognition that preferred stock investors can get!
Here’s a glimpse into what motivates some of our membership to participate:
Investment Opportunity Summary
- Each share is $250, with a minimum purchase of 2 shares.
- Three investment tiers are designated, with additional returns on Tiers 2 and 3 upon repurchase of those shares by the co-op:
TIER 1 TIER 2 TIER 3
Shares purchased: Shares purchased: Shares purchased:
2-9 ($500-$2250) 10-19 ($2500-$4750) 20+ ($5,000+)
Additional Returns: Additional Returns:
$5 premium/share $10 premium/share
- Return Rate: The Board of Directors will perform a yearly dividend review and once feasible, intends to declare and pay dividends of approximately 4% to investors.
- Return Period: Phased buy-back is planned to occur between 5 and 7 years, as determined by the Board of Directors.
Please note that this example is a hypothetical only, and is intended to show the results of an investment presuming the co-op experiences the financial success. There can be no assurance that such financial results will be achieved by Flying Bike or that such financial results will be achieved during the time periods described in the following scenario.
If the Board declares a dividend, each shareholder receives a payment equal to 4%* of their total investment. The Board of Directors will evaluate if a dividend payment can be declared at least once per year. This dividend will be paid out at that time, until the Board of Directors declares stock buyback – expected to be in 5 to 7 years
Example: $3,000 Investment (12 shares)
Additional Returns: $5 premium per share upon repurchase.
- Year 1: $3,000 investment made by Flying Bike member through the purchase of Preferred Stock.
- Years 2- 5: we made a profit! A dividend is declared – $3,000 x 4%= $120 dividend distributed annually.
- Year 6: Dividend is declared, 50% buyback is announced – $3,000 x 4% = $120; 6 shares = $1,500; $5 additional return on 6 shares = $30; $1,650 check distributed.
- Year 7: Dividend is declared, complete buyback is announced – $1,500 x 4% = $60; 6 shares =$1,500; $5 additional return on 6 shares= $30; $1,590 check distributed
*Rate of return reflected in dividend on preferred stock may be adjusted up or down by the Board of Directors, depending on profitability of the year. The Board of Directors may also determine that a dividend will not be declared in any particular year. Please review the Disclosure Document for a more detailed discussion of the risks and benefits involved in purchasing Preferred Stock.
When you’re ready to move forward with your investment, you’ll have to do a couple things:
- Fill out the Subscription Agreement that is Exhibit B to the Disclosure Statement. (Download Disclosure Statement Here)
- Fill out the W-9 form (Download W-9 Here)
- Make your check out to “Flying Bike Cooperative Brewery, US Bank as Escrow Agent”
- Mail everything to 1752 NW Market St, #633 Seattle, WA 98107, or shoot us an email and we can schedule a pick up.
The investment documents are a little dense, so if you have any questions about investing, please feel free to shoot an email to firstname.lastname@example.org.