• Crowdfunding – the practice of quickly raising capital from a large pool of backers – isn’t new to specialty coffee, but it’s becoming an increasingly common practice for roasters and coffee shops.
• Proud Mary’s recent campaign raised over US$1.23mn in less than 70 days, while WatchHouse generated over £7.2mn – more than 700% over its initial target.
• Reputable roasters are leveraging their pulling power and appeal to build community while accelerating growth.
• As financial institutions tighten lending criteria, crowdfunding is emerging as a viable solution to raise funds, scale, and invest in brand loyalty.
• But it’s not without its challenges; roasters need to be heavily involved in community engagement every step of the way.

Today’s challenging economic climate is driving more specialty coffee roasters and shops towards crowdfunding, especially as banks tighten access to loans. 

Rising costs across the industry, from record green coffee prices to higher utility bills and wages, have made launching or scaling a coffee business an uphill battle. To avoid the constraints of traditional funding sources, such as high interest rates, operators are looking to alternatives – and crowdfunding has emerged as one of the most effective solutions.

It’s becoming a popular way to connect with consumers and other interested parties, leveraging the power of individual backers to build community and invest in sustainable growth.

Whether it’s to scale up operations or expand into new markets, crowdfunding is opening up new paths in an industry that thrives on connection and innovation, but there are still clear risks to consider.

I spoke with Carlos Eduardo Bitencourt, the founder and CEO of Cafezal, to learn more.

You may also like our article on why more roasters are rebranding than ever before.

Why crowdfunding is becoming more popular in specialty coffee 

Traditionally used by coffee equipment brands to fund and drum up interest in new product launches, roasters and coffee shops are also increasingly turning to crowdfunding. This is when companies create funding campaigns on online platforms, such as Kickstarter, Crowd Cube, and Indiegogo, where individuals contribute money to support projects or business ventures.

But why is this shift happening now?

Already, opening a coffee shop or roastery often requires significant upfront investment. The Specialty Coffee Association’s financial benchmark study found that launching a roaster wholesaler and retailer operation requires an average of US$120,000 in startup capital.

However, as the coffee industry faces a record year on the cost front, launching or running a roastery or café is becoming increasingly expensive.

Green coffee prices reached an all-time high in February 2025 and have remained high and volatile since then. US President Donald Trump’s decision to roll out sweeping tariffs – including a staggering 50% on Brazil – is also adding complexity and reshaping well-established trade dynamics.

Global inflation rates are also rising, particularly in the UK and the US, as the costs of goods, services, and labour continue to increase.

All of these factors mean margins are tighter than ever. Passion alone is no longer sufficient to sustain a roastery or café, as economic hurdles create a more formidable landscape for coffee business operators.

Simultaneously, obtaining loans through banks has become more challenging, as financial institutions tighten their lending criteria – especially for younger and smaller businesses. If they are able to secure a loan, the rigorous collateral requirements pose further obstacles and create additional pressure.

For many coffee companies, crowdfunding has become a viable alternative to traditional financing models. The model operates in several ways:

• Donation-based funding, so there is no return on investment
• Rewards-based campaigns, offering products or perks in exchange for funding
• Equity crowdfunding, where investors gain a stake in the business

Instead of receiving a large sum from a single investor, brands collect smaller amounts from multiple contributors – building a sense of community that supports sustainable growth.

“In any sort of business, leaders have options to access cash, like IPO or bonds. But in specialty coffee, we are particularly close to customers, which allows us to access capital from them, as well as professional investors,” says Carlos, the founder and CEO of Cafezal, the first specialty coffee roaster in Milan, Italy, which has also utlilised crowdfunding to scale.

“Crowdfunding has emerged as a relevant alternative for coffee companies; it can generate a huge marketing effect during and after the campaign and a network of smaller shareholders who can speak about the company to others,” he adds.

More coffee roasters are seeking alternative funding

Research indicates that approximately 60% of small, independent coffee shops fail within the first five years of operation. With market saturation, soaring overheads, and volatile coffee prices, it’s harder than ever to establish a successful coffee business.

“The marketplace of specialty coffee keeps growing, and therefore, the fastest and business-driven companies will have more chances to thrive,” Carlos says. “At the same time, consumers are becoming more educated about coffee, which opens up new opportunities.”

In turn, both prospective and established roasters are turning to their communities for support. For some, these methods are more than just financial lifelines; they double as marketing tools, fostering early customer loyalty and creating a sense of shared ownership. Individual backers – whether they have a stake in the business or donated funds – are invested in its success and will remain loyal, long-term customers.

One of the most recent examples is Proud Mary, a prominent Australian specialty coffee roaster that expanded into the US in the late 2010s with locations in Portland, Oregon, and Austin, Texas. After raising US$1.23mn from over 230 investors, the roaster will use funds to open new coffee shops in Oregon and Texas, as well as launch a small-format on-the-go concept. 

The UK’s WatchHouse also had a similarly successful crowdfunding campaign, leveraging its brand name and reputation to attract alternative investment. The roaster raised 700% of its target, allowing it to open a shop in the Chrysler Building in New York City.

In an industry built on community, alternative funding in specialty coffee taps into the inherent consumer “connection” with the product. This enables brands to remain agile, grow rapidly, and quickly establish a foothold in the marketplace.

“Besides the equity given to the new shareholders, coffee companies offer subscription promotions, coffee experiences packages (like coffee courses, or even origin trips for larger investors), as well as merchandising and coffee accessories,” Carlos explains, which helps fuel the sense of ownership and rewards.

Is crowdfunding the future of specialty coffee?

As operational challenges persist, the specialty coffee sector and its advocates must adapt. Crowdfunding could well become more prominent, particularly in terms of scalability and expanding existing operations. 

“The future of specialty coffee is getting companies set for business, not only on passion,” Carlos says. “It’s about more than the quality of coffee and pastries or the hard work that companies need to put in creating a great team and brand, but it’s also about facts and business-driven decisions. Crowdfunding is a valid, but it’s just another way for companies to raise capital.”

Alternative funding has several valuable benefits; it helps create a more profound sense of community. Specialty coffee thrives on loyal, engaged customers who value craftsmanship, transparency, and a compelling story. Crowdfunding taps directly into that, turning customers into early supporters and advocates.

“You have much more visibility through a robust marketing campaign, and the potential increase in sales through your network of investors,” says Carlos. “Companies also tend not to lose much control of their administration when doing crowdfunding.”

However, there are significant risks associated with this approach. Individual funders are deeply invested in the business, which means regular updates are critical to maintain their support.

“You need to have a very strong reporting system towards the shareholders and a more complex communication structure in the company,” Carlos explains.

This means a robust marketing strategy and active engagement throughout the entire campaign duration are essential – and many companies underestimate the level of activity needed to drive success.

Moreover, the risk of failure is notable. Roughly 9% of Kickstarter campaigns never fulfil their promised rewards, which means coffee businesses need to accurately calculate the cost of their reward tiers so they can deliver on every commitment.

The capital raised is also at stake; most crowdfunding campaigns are based on an all-or-nothing scheme. If the campaign fails to reach its target, the revenue raised will be returned to investors, leaving the business with essentially nothing. 

“As with any investment, the person must believe in the business and the wider industry,” Carlos says. “Specialty coffee is experiencing strong growth, but as an investor, you must be patient for cashing out your investment, perhaps four years or longer. The prospects, however, are very positive for those who understand that the specialty coffee and modern F&B markets are growing.” 

Crowdfunding is not a silver bullet, but it has become a powerful tool in the specialty coffee playbook, particularly for brand storytelling, community building, and lowering the barrier to entry. 

It’s likely to grow in relevance, but most successful coffee businesses will still need to blend it with more traditional financing to ensure stability.

Enjoyed this? Then read our article on how to build a brand as a coffee roaster.

Photo credits: Cafezal

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