How Maketto Raised Capital & Customer Loyalty on SMBX.

Maketto raised over $130,000 to build their new outdoor courtyard with no origination fees, thanks to the DC Rebuild Bond Program SMBX.

Maketto's Raise at a Glance


$$130,890 raised

termBond Terms: 7.5% interest for 5 years


fee$0 in origination fees

investorsNumber of unique investors: 179

Background

Maketto is a communal marketplace and restaurant in Washington D.C. Founded by well-known Chef Erik Bruner-Yang, the business combines elements of a night market, shopping space and restaurant, all into one experience. But when the pandemic started, Maketto needed capital quickly to build a comfortable and accommodating outdoor space for their customers.

Maketto 1-1
Challenges
 
1. Debt Financing vs. Equity Financing
Most businesses raising capital must choose between these two financing options: Debt or equity. With debt, businesses borrow money and pay back with interest in set terms. With equity, businesses sell a portion of their company’s ownership. Though both sides have their advantages, Bruner-Yang chose debt to maintain full autonomy of his business. Plus, he got an excellent rate on SMBX through the D.C. Rebuild Bond Program (more on that below).

 
2. High Fees and Interest Rates
Debt financing typically comes with expensive origination fees (or upfront fees) and interest rates (the percentage of principal the borrower must pay back). This is because lenders need to make a profit on their investments. But with the D.C. Rebuild Bond Program, Maketto paid $0 in origination fees and only 7.5% interest over 5 years on SMBX. This is made possible by the generous support of the City of Washington D.C. and the Mayor’s Office.

 
3. Getting Funds Quickly
Maketto needed funds quickly to bounce back from the pandemic. Small Business Administration loans (or SBA loans) can take months just to get approved and even longer to receive the cash. Also, SBA loans come with strict regulations on how the business can use funds afterwards. This could limit how Maketto ended up using the money, adding significant delays or even getting their application outright rejected.

“Doing a bond raise through SMBX has been rewarding on so many levels. Not only did we achieve our raise goal, but we have attracted new guests while strengthening our already strong sense of community from our long-time regulars and guests.” 

- Chef Erik Bruner-Yang, Maketto

Maketto 3

 

Solution
Maketto decided to raise the capital they needed on SMBX, successfully raising over $130,000 from the community to build their outdoor patio. Now they will pay back investors at an interest rate of just 7.5% over 5 years. Best of all, as a D.C. business, they paid no origination fees through the D.C. Rebuild Bond Program.

Maketto received investments from nearly 180 unique everyday investors. Plus, the campaign caught the eye of many local press outlets such as Washington Blade and Washington Business Journal. “Doing a bond raise through SMBX has been rewarding on so many levels,” said Chef Bruner-Yang. “Not only did we achieve our raise goal, but we have attracted new guests while strengthening our already strong sense of community from our long-time regulars and guests.”


From initial onboarding to promotion and close, SMBX’s team of experts helped Maketto work through the process efficiently and easily. “Working with the SMBX team was a great experience, with regular communication and schedules to keep everyone updated and on track including plenty of support & resources which ultimately made our raise a success. I strongly encourage small businesses to work with SMBX,” said Chef Bruner-Yang.

Get in touch with our team.

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