How do i get investors for a restaurant?

Question

How do i get investors for a restaurant?

Answer 1

Virtually impossible to do even in the best of times.  These are not exactly the best of times either.  Restaurants about about the worst investment there is. About 70% do not last 2 years.

Answer 2

There  would need to create a Private Placement.  One would fall under SEC Reg D rules; SEC Rule 504, 505, or 506.

All investors should be "accredited" or "qualified purchasers." I would not have any "non-accredited" people in the fund. These are the liability investors - who are mostly likely to sue and win if the fund loses a dime.

If the fund has USD $25MM or more it would need to be registered with the SEC if it has presence in the USA and or has US investors.

If the fund is under $25MM and has US investors or is based in the USA, then it would be regulated by State Securities Law in the state where you and the fund resides.

I have done a lot of work in this area in developing hedge funds, and it is way to complex to answer here. I would definitely get a securities attorney who has special knowledge in this area.

Good Luck with the biz!

Answer 3

You have to sell yourself to them.  If they believe in you they will invest in you and your products.

Answer 4

What kind of restaurant? where ? (I believe you already considered the importance of location)  and what is the expected total investment .

I mean: you may find someone some local investors for small restaurant in a little town. You need investor with a big investment capacity and a far better business & marketing plan if you want to open an upscale place downtown in a big city.

You need to release more information in order to get some useful hints