Overview
Because Coffee, a specialty coffee roaster dedicated to sustainable sourcing and community impact, sought to scale its operations and amplify its mission-driven brand. To fuel this growth, the company launched a Regulation Crowdfunding (Reg CF) campaign, leveraging Issuance Express, a FINRA-regulated Funding Portal (https://issuanceexpress.com/), to connect with a diverse investor base. This case study highlights how Because Coffee utilized Issuance Express to achieve its fundraising goals, showcasing the power of equity crowdfunding for mission-driven businesses, and leveraged a new plug-in between Issuance and Equity Trust to accept self-directed IRA investments.
Equity Trust Corp. is one of the largest self-directed IRA companies serving customers in the United States, with over 1 million individual account holders – by integrating with Issuance, they bring their account holders a base of alternative investment opportunities that they can participate in using proceeds of their self-directed IRA account. For Issuance users like Because Coffee, this also meant being able to accept investments from their fans and customers who already have an IRA with Equity Trust.
Challenge
Because Coffee embarked down the Reg CF pathway with the goal of raising approximately $1M from investors of all shapes and sizes. Being a consumer brand that strives to serve top-quality coffee products to customers across the income and net worth horizon, one of the key factors that motivated leadership to pursue capitalization under Regulation CF was the goal of welcoming non-accredited investors into the ranks of the Because Coffee capitalization table.
Because Coffee aimed to raise capital to enhance its roasting facilities, expand distribution, and strengthen its commitment to ethical sourcing. Traditional financing options presented challenges, including high costs and limited access to a broad investor pool. The company needed a platform that could streamline the fundraising process, ensure compliance with SEC regulations, and engage both accredited and non-accredited investors to support its vision.
Solution
Because Coffee partnered with Issuance Express to execute its Reg CF campaign. Issuance Express’s end-to-end solution provided a seamless, compliant, and investor-friendly experience, enabling Because Coffee to reach a wide audience while maintaining operational efficiency. The platform’s robust tools, including investor verification, secure payment processing, and integrated marketing support, empowered Because Coffee to focus on storytelling and community engagement.
Campaign Highlights
- Total Raised: $1,198,662.50
- Number of Investments: 183
- Security Type: Units (Class B Non-Voting)
- Minimum Investment: $1,000
- IRA Participation: EquityTrust IRA plug-in facilitated 90+ investments, accounting for 67% of funds raised
- Duration: Two phases, spanning 6 months
Results
The campaign’s success underscored the strength of Because Coffee’s brand and Issuance Express’s platform capabilities. By leveraging Issuance Express’s technology, Because Coffee attracted a diverse investor base, with significant participation through IRA investments, demonstrating the platform’s ability to unlock alternative funding sources. The campaign exceeded its fundraising target, enabling Because Coffee to invest in sustainable growth while fostering a community of investors aligned with its mission.
It's clear that the population of participating investors included a significant portion of accredited, higher net worth investors - given that self-directed IRA account holders perhaps skew wealthier than the general population, this was to be expected - but a low minimum of $1,000 nevertheless ensured that individuals who didn't have $5k or more to commit to an alternative investment could still participate at an amount within their budget.
Issuance Express Value Proposition – Issuance Express’s platform transformed Because Coffee’s Reg CF campaign by delivering:
- Compliance and Security: Automated compliance and secure escrow services ensured a seamless, trustworthy process.
- Accessibility: Enabled both accredited and non-accredited investors to participate, democratizing investment opportunities.
- Efficiency: Streamlined campaign management, from investor onboarding to fund disbursement, reduced administrative burden.
- Engagement: Integrated marketing tools amplified Because Coffee’s story, driving investor interest and participation.
- Scalability: Supported IRA integrations, unlocking significant capital (67% of funds raised), a key differentiator for retail investors.
Conclusion
Because Coffee’s Reg CF campaign on Issuance Express exemplifies how mission-driven companies can leverage equity crowdfunding to achieve ambitious goals. Issuance Express’s comprehensive platform empowered Because Coffee to raise over $1.1 million, engage a broad investor community, and advance its vision for sustainable coffee production. By combining compliance, accessibility, and efficiency, Issuance Express proved to be the ideal partner for Because Coffee’s successful fundraising journey, setting a benchmark for Reg CF offerings.
Ready to launch your own Reg CF campaign? Schedule a demo with Issuance Express to learn how our platform can power your fundraising success: tinyurl.com/mryssb7j
Because Coffee SEC Form C Filing: tinyurl.com/mr9ruzpd
