FOODSHED INVESTORS
  • Advisory
    • Funding Readiness
    • Virtual Biz Partner
    • Farmer Advisory
    • Innovation Center
    • Request Consult
  • Get Funding
    • Farmer Funding
    • Apply for Funding
  • Invest
    • Everyone
    • Accredited
    • Syndication
    • Register
  • Portfolio
  • About
    • Who We Are
    • Contact
    • Newsletters
    • Events
    • Blog
    • FAQ
    • Experts
    • Sponsor FI

Case Study: Cat Springs Yaupon Tea

6/1/2016

 
Picture
Cat Spring Tea produces yaupon tea of the highest quality, returning to the true American values of sustainable farming and good stewardship of the land. Nothing touches their yaupon but sunshine and rainwater; it's free of pesticides, chemical fertilizers, and synthetic weed control measures. ​
Cat Spring harvests a shrub - yaupon - that grows naturally across most of the southern United States. This use of a native, renewable ingredient, combined with their local production allows them to have a large impact right here in Texas, creating jobs and an economic multiplier on all of their success.

Cat Spring Tea is also using the harvesting and production “unskilled labor” demands as a platform for second chance employment by partnership with organizations supporting and equipping marginalized individuals overcoming criminal histories and generational poverty. Work is worth and our hope is that their steady job at Cat Spring Tea gives them pride and a hand up.

AFI Relationship: Cat Spring is a wonderful example of an ongoing, and growing relationship between AFI and local sustainable food entreprenuers.

When Co-Founder Abianne Falla first came to us, she needed capital to grow the business - particularly to keep up with demand - but wasn't sure how much to raise or how best to go about raising it.


AFI worked with her to identify key, achievable, near-term milestones along with how much money would be required to get there.

During this process, we determined that they would be a perfect fit for the USDA Value-Add Producer Grant, so we put them in touch with a grant writer in our network. They won a $250k grant from the USDA, but it is a "matching grant", meaning they first need to spend the money, then get reimbursed.

So members of the AFI Investor Network lent them $75k to  "prime the pump" and initiate the flow of funds from that grant.

Most recently, we closed a working capital loan to fund new opportunities for product line extensions, which unfortunately don't fall within the spending rules of the Grant.

Deals
Funded:  June 2016.  AFI-Led.
Use of Funds:  Working Capital for product line extension.
Vehicle:  Subordinated debt.

Funded:  January 2016.  AFI-Led.
Use of Funds:  Initiate the flow of funds from the USDA Matching Grant (see below).
Vehicle:  Royalty-based loan with a payback from a claim on distributable cash and payments on a quarterly schedule.


Funded: September 2015.  AFI-Enabled.
Use of Funds:  Marketing, Capacity expansion.
Vehicle:  USDA Value-Added Producer Grant​

Comments are closed.
    Picture
    INSIGHTS
    "Insights" is our blog of case studies, newsletters, podcasts, videos, tips & tools, research, and more at the intersection of food, finance, and social good.
    Newsletter Sign Up

    Categories

    All
    Austin Scene
    Case Studies
    Food Systems
    Funding
    Industry News: F&B / Ag
    Investables Beyond FI
    Investing
    News From FI
    Portfolio News
    Research & Publications
    Sustainability
    The FI Podcast
    Tips & Tools
    Videos

    Archives

    February 2019
    January 2019
    December 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    January 2018
    October 2017
    July 2017
    June 2017
    May 2017
    April 2017
    February 2017
    January 2017
    December 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    February 2014
    January 2014
    October 2013
    September 2013
    May 2013
    December 2012
    October 2012
    March 2012
    September 2011
    August 2011

    RSS Feed

Engage
​​  Sign Up for Newsletter 
Request Advisory Services
  Apply for Funding 
  Register as Investor
​  Register as Expert
​  Syndicate Deals with FI
​  Sponsor FI
  Become Community Supporter
  Read our Blog
  Find Local Foodshed Events
  Review Case Studies
  Listen to our Podcast
  Read News from FI
Advisory
Advisory Overview  
​Request Advisory Services
​  Register as Expert
  Review Case Studies
  Funding Readiness
  Virtual Business Partner
  Farmer / Rancher Advisory
 Innovation Center

Social Media
  Twitter
  Facebook
  LinkedIn
  YouTube
  Instagram
 Funding
Funding Overview 
Apply for Funding​
  Farmer / Rancher Funding​
 FI Direct Investments

Investing
Investing Overview
 Register as Investor
Everyone Network

  Accredited Network
​  Syndicate Deals with FI

Portfolio
About
About Us
​​FAQ
News From FI
Disclosure
Terms of Use
​Privacy Policy

​Offices
  Austin
 
Login


Copyright © 2019, Local Impact Investors, LLC d/b/a Foodshed Investors
  • Advisory
    • Funding Readiness
    • Virtual Biz Partner
    • Farmer Advisory
    • Innovation Center
    • Request Consult
  • Get Funding
    • Farmer Funding
    • Apply for Funding
  • Invest
    • Everyone
    • Accredited
    • Syndication
    • Register
  • Portfolio
  • About
    • Who We Are
    • Contact
    • Newsletters
    • Events
    • Blog
    • FAQ
    • Experts
    • Sponsor FI