Worcester Business Journal

wbjournal.com | May 5, 2025 | Worcester Business Journal 13 Crowdfunding isn't the right fit for our business Small consumer-facing businesses are beginning to turn to a relatively new way to raise financing for business expansion: Crowdfunding money from customers in exchange for discounted goods and services. Stow sandwich shop Nan's Kitchen raised $1.2 million to open a new storefront from customers, employees, and fellow professionals in exchange for equity. Additionally, Worcester coffee shop Cordella's is raising funds on crowdfunding platform NuMarket, offering anyone who wants to invest gift cards totalling 120% of their investments. When polled online, more than three- fourths of WBJ readers said this type of financing wouldn't work for them. Would your business ever consider crowdsourcing financing from your customers? Yes, we have already done a version of this Maybe, it is an interesting topic worth exploring. 19% No, this is not a good fit for our organization. 80% 2% SMALL BUSINESS F O C U S to generate income in the evenings, Cor- della's co-owners Alecia Bishop, Andy Jimison, Jessica Rao, and Ellie Ellis are planning to broaden their shop's business model to include cafe service during the day and operate as a wine bar in the evenings. is will include knocking down both walls on either side of its cafe to incorporate the adjacent storefronts, move the bathroom, and renovate the area into one large, open layout. "e focus of utilizing a space for multi purpose is a big thing now," said Bishop. "It's just the way that cra coffee is going." In order to fund this heavy li of a renovation, Cordella's owners turned to the crowdfunding platform NuMarket. "We wanted to do something that had value for people who were going to contribute, which is why NuMarket was a standout option for us," said Bishop. NuBeginnings Ross Chanowski founded the Bos- ton-based NuMarket in 2021 aer noticing he and his fellow small business owners all had one thing in common: lack of access to financing, or at most, terrible financing. At the same time, those businesses had lines down the block and a strong, loyal customer base. "I kind of wanted to put those two things together and help turn every- day customers and real people into the financiers of great, small businesses," said Chanowski. us, Chanowski launched NuMarket. e online platform allows small busi- nesses to run crowdfunding campaigns for needs including expansion projects, purchasing essential equipment, and working capital. Anyone can contribute any amount of money to their campaign of choice in exchange for 120% of that contribution in credit to be used at that business throughout six monthly install- ments. "You're really paying back your customers, the people who you want to come through the doors more oen, and that money stays in the community," said Chanowski. As opposed to using institutional lenders, such as banks where inter- est rates can be in the double digits, NuMarket solely keeps 12% of the funds raised as payment. "If you're paying back more ev- ery month to not only a stranger, but essentially, just a large corporation that isn't really paying attention, that's not necessarily really helping your business Ross Chanowski, founder of NuMarket Continued on next page

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