Why We Chose Equity Crowdfunding

Back in July, our Board member Lisa Curtis floated the idea of opening Young Mountain Tea's ownership to the general public. The concept of equity crowdfunding had an electric daring hopefulness that instantly felt right, even if unconventional. But as Oscar Wilde said, "An idea that’s not dangerous isn’t worthy of being called an idea at all." So, two weeks ago, when we launched our $375,000 equity crowdfunding campaign through WeFunder, we committed to a grassroots approach that opens our doors to a whole world of new partners.

What Is Equity Crowdfunding?

Traditionally, only accredited investors—wealthy individuals or institutions meeting specific income or net worth criteria—could invest in early-stage companies. Laws like the 2012 JOBS Act changed that, democratizing startup financing by making it possible for anyone to invest in promising businesses. So now, companies can receive funding from crowds ("crowdfunding") in exchange for ownership ("equity"). Just over a decade old, this new investment approach is reshaping how businesses can leverage grassroots support—from their customers to high school friends of the team—to become "retail investors" in small businesses.

Equity crowdfunding campaigns are hosted on online platforms that serve as matchmakers between investors and companies. We chose to work with WeFunder, one of the first and most respected equity crowdfunding platforms. WeFunder acts as an intermediary on the flow of investors' dollars to our account, handles legal filings, and markets our campaign across their community of investors. We pay them a percentage of the total amount invested, so it's in everyone's best interests for the campaign to succeed.

Why We Chose Equity Crowdfunding

Back in 2021, our first equity investors, Daniel Ross and Gustavo Mamao at DAISA, helped me understand that a good investor does more than provide capital—they become partners in the business, unlocking opportunities with their networks and experience. As we've built partnerships with other impact investors like Acumen and SWAN, it's become clear that good investors can be transformative; the fresh perspective and motivation are incredibly valuable.

Then during this summer's Board call, Lisa pointed out that equity crowdfunding could extend that approach to all stakeholders in our work—other advisors, customers, and supporters. A network of owners across all of society, all quite literally invested in our success, would be a powerful force for driving change.

On a deeper level, equity crowdfunding aligns with a core value of shared ownership. Young Mountain Tea was founded on the belief that "there's plenty for everyone...if we do it right." Good tea is good health, and such a healing drink can, and should, create wealth for every person tea touches—from farmer to drinker.

That’s why we spent the last five years building a system of connected legal entities to co-own the new Kumaon Tea Factory in the Himalayas with local farmers.

The process of launching an international joint venture was far from glamorous, involving many a Saturday morning at our local Michigan FedEx, overnighting documents to Delhi (always signed in triplicate, of course). The work was consequential and confusing, defined by red tape and long calls thinking through every worst-case scenario imaginable. Yet at the same, it was deeply satisfying to do the hard work of living by our values, and exhilarating to be actively creating a framework for system change.

With the successful completion of the factory, we took a major step forward in sharing ownership of the tea trade. As we grow demand for the Kumaon Factory's teas, it only seems appropriate to maintain the shared-ownership-philosophy here in the US. By creating a pathway for customers to own Young Mountain Tea, tea drinkers can become co-owners of the same system as the farmers who grow their tea. At last, everyone's values are aligned: if the farmers do well, so do the tea drinkers, and vice versa. And if we do it right, there’s plenty for everyone.

Join Us

Every dollar we spend, every dollar we save, every dollar we invest—they each support one system or another. The ways we choose to exercise our capital is a powerful form of personal political expression. If you want to be part of our journey, we’d love for you to join us. Our WeFunder campaign is open, and you've got my personal invite to become a fellow owner in this grand adventure.