From CraftFund:
Breweries seeking to raise capital have two options: finance through debt or sale of equity. In today's tough lending environment, often breweries are required finance operations by selling equity in the company. Currently, only high net worth individuals (with some minor exceptions) are allowed to purchase equity in small businesses like breweries. This is a problem for two reasons. First, the pool of accredited investors in the U.S. is only 8 million. Second, securities laws have long prohibited breweries and other small businesses from advertising their private offering. This means that breweries have had to go through a pain- staking process of establishing "substantial relationship" with any potential accredited investor. The result is that breweries and other small businesses have not been able to cast a very wide net for potential investors. Indeed, of the 8 million accredited investors out there, only 3% are active.
The bottom line: the ability to advertise an offering will make it easier for breweries and accredited investors to find eachother.
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