Crushpad Syndicate: How It Works
Crushpad has launched over 150 commercial wine brands and now Crushpad Syndicate makes it easy to attract and service investors for your wine business.
Create Your LLC
Every syndicate is based on a limited liability company (LLC) structure. LLCs are simple and flexible, and provide you personal protection. You can use your own tax/accounting resource or we can do it for you with our turn-key winery in a box.
Create Your Business Plan
We provide a business planning tool to help identify what your production goals are, how wine is priced, how much capital is required for the business and how your investors get paid back. These results flow into a business plan template to share with investors.
Create a Private Investment Agreement
Syndicates are typically based on a revenue share model in which a defined portion of revenue is paid out to investors each year. Revenue share is simple to implement, does not require annual filings for investors and gives investors a specific path to getting a return on their investment. Customize our simple agreement or we'll do it for you.
Solicit Investors
Send out the business plan along with the investment requirement based on the total capital required and number of investors. Note that there are federal- and state-level restrictions on who can be solicited, the content of the solicitation, and how much money can be raised. We provide an investor validation tool to ensure everything is on the up and up.
Receive Money
When investors return their agreements and checks, send them back a copy, give a copy to your accountant, deposit the funds and you're off and running.
Run the Business
Make and sell wine, as well as any of the other activities you want to conduct with your wine brand. Once a year create your annual report that includes the total revenue and revenue share proceeds that will be distributed to investors pro rata.
