Crushpad Syndicate: Examples
Example #1
Small Producer (50 cases, growing to 140 cases) 8 Investors
This is a small wine brand with 8 investors, each of whom invests $5,000 for a total capitalization of $40,000. The revenue share is 20% and the period is 7 years. 25 cases each of Cabernet Sauvignon and Pinot Noir are produced and the first year both barrels are adopted.
Each investor may purchase one case per year of each wine at cost.
Revenue & Expenses
Investment Payback
Over 7 years, each investor receives $7,500 for a profit of $2,500 (10% annualized) on their investment of $5,000.
Example #2
Larger Producer (500 cases growing to 2,000 cases) 200 Investors
This is a larger syndicate with 200 investors, each of whom invests $2500 for a total capitalization of $500,000. The revenue share is 15% over 7 years. The syndicate produces 6 different wines ranging from 25 to 200 cases each. The first year, 20 barrels are adopted to accelerate wine delivery.
A special investor magnum bottling of the reserve wine is given to each investor annually. Additionally, each investor must purchase at least one case of the brand’s wines at retail price and are encouraged to share and promote the brand to their networks. $200/year/investor is allocated by the LLC to provide swag, business cards and to host the annual event at the winery in Sonoma. Additional investor networking options are facilitated but not paid for by the LLC.
Revenue & Expenses
Investment Payback
Over 7 years, each investor receives $3,200 for a profit of $700 (6% annualized) on their investment of $2,500.
